Natwest (NWG) Share Price Fell 0.84% on Management Reshuffle

The Natwest Group PLC (LON: NWG) share price fell 0.84% on news that Paul Thwaite, the bank’s Chief Executive Officer, has initiated a significant restructuring of the bank's leadership team as part of a strategic move to decrease expenses and enhance profitability within the UK financial institution.

In a decisive step, Robert Begbie, previously the interim leader of the bank’s commercial division following Thwaite's promotion last year, has been confirmed to permanently occupy the position, as indicated by a source privy to these developments. 

Furthermore, the reshuffle will see the departure of Gideon Moore, the bank's general counsel, and Matt Austen, a strategy officer. This information comes from an individual who prefers to remain anonymous while discussing internal matters.

A spokesperson for NatWest Group articulated through an email statement, “We have made structural adjustments that pave the way for the bank's future direction. This revamped structure is designed to streamline NatWest Group, fostering a more cohesive and straightforward organisational framework.”

The restructuring was initially highlighted by the Financial Times. The backdrop to these changes includes NatWest's cautionary note about a potential downturn in revenue this year, attributed to the challenges its operations face amidst declining interest rates. 

Thwaite, who assumed interim leadership following Alison Rose's departure and was subsequently appointed as the permanent chief in February, is now concentrating on operational efficiency enhancements across the bank.

A notable development in the organisational realignment is establishing a new chief operating office (COO) headed by Jen Tippin, previously the chief of people and transformation at NatWest. This new entity will amalgamate Tippin's former department with others responsible for communications, governance, marketing, legal, and regulatory affairs, as shared by the same source.

This strategic realignment will lead to a reduction in the executive management team from 15 to 10 members. Additionally, the bank is looking for a new head for its markets division, a role that will report directly to Begbie.

These organisational changes occur in tandem with the UK government's ongoing efforts to divest its stake in NatWest, which has recently fallen below 30%, thereby relinquishing its status as a controlling shareholder. 

The government is exploring selling some of its remaining shares to retail investors, aiming to divest its stake by 2026.

Natwest (NWG) share price. 

The Natwest (NWG) share price fell 0.84% to 259.70p, down from Tuesday’s closing price of 261.90p.