RBS share price falls after finance chief quits

on Dec 11, 2013
Updated: Oct 21, 2019

iNVEZZ.com, Wednesday, December 11: The Royal Bank of Scotland (LON:RBS) last night said that its Chief Financial Officer Nathan Bostock will step down after less than three months in the role.

The RBS share price has fallen by more than 1.5 percent in early morning trading today.
Bostock’s departure is a major blow to RBS’s new chief executive officer Ross McEwan who is conducting a review of strategy and operations for the bailed-out bank. Bostock, a former head of restructuring at RBS, was expected to play a key role alongside McEwan to create the £38 billion internal ‘bad bank’ announced last month.

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“The Royal Bank of Scotland Group can confirm that Nathan Bostock has this evening informed the Board of his intention to resign from his role as Group Finance Director. His formal resignation is expected soon, but he will remain in his position to oversee an orderly handover of his responsibilities,” the UK’s largest state-owned bank said in a statement. It gave no reasons for Bostock’s departure which comes six months after Chief Executive Officer Stephen Hester submitted his own resignation (RBS Share Price Dips on CEO Stephen Hester’s Departure).

SkyNews reported that Bostock will return to Banco Santanter’s UK unit to become deputy chief executive and chief risk officer. He worked for the British unit of the Spanish bank prior to joining RBS in 2009.

The departure of Bostock, who was only promoted to the top finance position at RBS on October 1, throws the 81 percent taxpayer-owned bank into fresh turmoil following criticism over an IT systems failure that last week left hundreds of thousands of the bank’s customers unable to use credit and debit cards for several hours on one of the busiest online shopping days of the year (RBS share price: IT glitch hits card holders at RBS and NatWest) and allegations about its treatment of small businesses (RBS share price: Bank denies wrecking small businesses for profit).

The resignation of Bostock leaves another gap in key management roles at RBS and presents a new headache for McEwan, himself only 10 weeks into his position as CEO. McEwan will now be seeking to find a replacement CFO, a head of the non-core division, and his own full-time replacement as head of the retail bank from which he was promoted when Stephen Hester was ousted in the summer.
Bostock’s appointment as deputy chief executive of Santander UK is understood to have been accompanied by an assurance that he will be in line to replace Ana Botin as the bank’s chief executive when she steps down. His arrival at Santander may also fuel expectations that the flotation of the bank’s UK unit, which was postponed after the banking crisis, is back on the agenda. Santander CEO Javier Marin said in October that he did not see next year as a good time for floating the unit and added he would consider the issue later in 2014.
**As of 8:23 UTC buy RBS shares at 331.70p**
**As of 8:23 UTC sell RBS shares at 331.50p**
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