11th Feb 2016 10:42
LONDON (Alliance News) - Royal Bank of Scotland Group PLC on Thursday said it has poached Peter Flavel, the chief executive of JP Morgan's private wealth management business in Asia, to take responsibility for its Coutts & Co and Adam & Co private banking operations.
The appointment comes about two weeks after RBS said it will take a GBP498 million goodwill impairment charge for its private banking business in the fourth quarter of 2015, primarily due to lower-for-longer interest rates, higher tax rates, pressure on margins and higher capital allocations. The private banking unit is withdrawing from international activities in favour of focusing on UK clients.
Flavel, who previously led Standard Chartered PLC's private banking business, will be based in London. RBS's private banking operations, which serves high-net-worth individuals in the UK, forms part of the group's Commercial & Private Banking division.
Michael Morley will step down as the chief executive of Coutts & Co, RBS said, though he will remain with the private banking business until the end of May.
"Michael has been instrumental in guiding the business over the past seven years particularly through a significant period of change. He now feels it is the right time to hand over the reins as the business takes a new direction and re-focuses on growth," Alison Rose, chief executive of Commercial & Private banking, said.
Rose said RBS is investing in its business in the UK, where it owns the Coutts and Adam brands, as the sale of its Swiss and Asia business to Union Bancaire Privée UBP SA draws nearer.
"I am thrilled to be appointed chief executive of Private Banking and look forward to the challenge of leading a business which has a strong heritage yet is modern and understands the needs of clients," Flavel said.
Shares in RBS were down 3.0% at 226.00 pence on Thursday morning.
By Samuel Agini; [email protected]; @samuelagini
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