The chief executive of Allied Irish Banks is jumping ship to lead the Clydesdale as parent group National Australia Bank continues its efforts to offload the business.
David Duffy replaces David Thorburn as CEO of the Glasgow-headquartered bank, although the 53-year-old is not expected to arrive until later in the year once he has been released by AIB and his appointment has been cleared by regulators.
NAB group chief executive Andrew Thorburn said Mr Duffy’s experience at AIB meant he was “uniquely qualified” to steer Clydesdale through a momentous period in its history.
Mr Duffy led AIB – which has 2.5 million customers and 10,000 staff – back into profit after the Irish government was forced to step in and nationalise the lender in 2010 when the country’s economy was in dire straits as a result of the global downturn.
The Clydesdale is facing a different challenge as NAB looks to dispose of its UK operations – which include the Yorkshire bank and which have been a drag on the group’s bottom line in recent years – through a potential stock market floatation.
“I am very pleased to be announcing the appointment of David Duffy as CEO of Clydesdale Bank,” Mr Thorburn said.
“He is a highly regarded banking professional who has the skills to continue to build on the improving performance of our UK Banking business. David’s leadership in the turnaround of AIB during a very challenging period for Irish banks is impressive.
“For the past three years, he has led the bank’s strong and sustainable profit growth, created a dynamic leadership team and gained the confidence and support of key stakeholders from staff, customers and investors to regulators, ratings agencies and governments.
“As a result of these strong capabilities, David is uniquely qualified to meet the challenges and opportunities of this important role, particularly as we are examining the broader range of options we announced in October 2014 to accelerate NAB’s exit from the UK Banking business.”
As CEO, Mr Duffy will be invited to join the boards of Clydesdale Bank PLC and National Australia Group Europe Limited as an executive director.
Clydesdale Bank board chairman, Jim Pettigrew, said Mr Duffy was an “effective and motivational leader” with a strong track record in the retail banking arena.
“In the past three years with AIB, he has delivered an impressive programme of positive change which has been built around the needs of customers,” Mr Pettigrew said.
“This important announcement is the latest in a series of appointments over the past six months which have greatly enhanced the strength of our UK Boards and UK Executive Committee.
“David’s decision to join us is also a real vote of confidence in Clydesdale and Yorkshire Banks, our people and our future prospects in the UK market.”