Royal Bank of Scotland has appointed one of its own executives to run Williams & Glyn, the branch network that is being spun out of the bailed-out bank, replacing the banker who led the successful bid to buy it.
John Maltby, a former executive at Lloyds Banking Group, led the consortium backed by the Church of England that was selected in September 2013 to take control of the 314 RBS branches being repackaged as W&G.
But he is now being replaced by RBS executive Jim Brown, who currently runs the Ulster Bank bank division of the 79% taxpayer-owned bank.
It was not clear who will replace Brown, who is credited with turning Ulster Bank back to profit last year for the first time since the 2008 crisis.
Maltby led the bid for W&G on behalf of a consortium put together by private equity firms Corsair Capital – where former Standard Chartered boss Lord Davies is vice-chairman – Centrebridge and RIT, the fund manager run by Lord Rothschild. The Church of England’s Church Commissioners fund also backed the bid for the branches, which must be sold off under the terms of RBS’s bailout in 2008.
The sale was supposed to be completed by now but was delayed after Santander bank pulled out of buying the branches. The aim is to float W&G on the stock market, although this is not expected to be completed until the second half of 2016.
The transaction is structured intricately. RBS is lending the consortium £270m of the £600m being invested by the private-equity-led group and paying up to £84m a year in interest on bonds it issues to the consortium.
Davies said: “The delivery of a new challenger bank is an exciting proposition and we look forward to working with Jim through this next stage to IPO.”
Maltby is remaining as advisor to the consortium.
Ross McEwan, RBS chief executive, said: “I would like to express our thanks to John Maltby for his very significant contribution to Williams & Glyn over the past 18 months.”
The request for RBS to carve out the branches was part of a series of demands from the EU that also required Lloyds to spin off TSB. Those TSB branches, floated on the stock market last year, are now being bought by Spanish bank Sabadell.
This article was written by Jill Treanor, for theguardian.com on Tuesday 28th April 2015 17.44 Europe/Londonguardian.co.uk © Guardian News and Media Limited 2010