CLYDESDALE Bank's new chief executive, Stuart Grimshaw, outlinedhis determination yesterday to integrate the Glasgow-based outfiteven further with its National Australia Bank (NAB) parent.
He revealed plans to introduce NAB's global Internet bankingservice to Clydesdale in the first quarter of 2001, emphasising theimportance of security in the online offering. The Scottish bank iswithout an Internet offering just now.
Giving his first interview since he succeeded John Wright at thehead of Clydesdale and sister bank Yorkshire on August 7, Grimshawhighlighted the importance of increasing awareness that Clydesdalewas part of a big global institution.
But he emphasised there were no plans to change the ClydesdaleBank brand name.
And he was unable to say whether or not NAB would even retainmajority control, following its planned demerger of Europeaninterests which also include Belfast-based Northern Bank andNational Irish Bank.
Asked about the demerger plans, Grimshaw replied: "Theunderstanding I have is they are still talking to the regulators. Itis still an option that is being pursued."
He said initially that it was his "expectation" that NAB wouldretain majority control. But he then retreated from this positionand said the question of ownership would depend on NAB's "strategicdirection globally, the direct-ion the group determines to take".
He also noted NAB had talked about raising "acquisition currency"through the planned London flotation of the European operations.
Presumably, its remaining stake will depend on how much cash itwants to raise by selling equity.
However, Grimshaw indicated continuing commitment from NAB.
"One of the things I want to do is make sure it is understoodClydesdale is part of a large global institution. I don't think thatis clear."
The former New Zealand hockey international, who brings with himbusiness banking expertise from his two-year stint as NAB's globalhead of business financial services in Sydney, also highlighted thetransplanting of products developed elsewhere in the group.
NAB products already introduced at Clydesdale include the"tailored business loan", which allows firms to manage theirinterest rate exposure by offering various options such as fixed orcapped rates. This was developed in Australia and has been offeredby Clydesdale since January.
In May, when NAB announced Grimshaw would be moving toClydesdale, he expressed a desire to raise the bank's share of thebusiness banking market.
He noted this had been static for some time.
He yesterday put this share at 13% of lending to small and medium-sized businesses in Scotland - a figure which rises to 24% ifcalculated on the number of customers - but he would not set atarget for any increase he hoped to achieve.
He emphasised instead the need to be profitable, rather than buymarket share.
Clydesdale claims 22% of the personal banking market in Scotland.
A "rapid repay" mortgage developed at Bank of New Zealand andalready on offer at Yorkshire will soon be launched by Clydesdale.
Grimshaw also highlighted plans to ramp up Clydesdale's presencein the structured finance market.
David Peebles, Clydesdale's head of Treasury, will lead a newEdinburgh operation focused on the top 300 quoted UK companies anddebt finance deals of more than #20m.
Grimshaw, who is 39, also acknowledged the possibility ofreducing the number of Clydesdale branches. The bank has 265branches in Scotland, and about half-a-dozen in England.
But he was extremely cagey on this politically sensitive issue.
Grimshaw said: "It is a big dilemma for any institution. You aredealing with shareholders for economic returns as well as communityinterest. That is a debate that rages long and hard, as it doesinternally."
Asked if there would be a need to reduce branch numbers, hereplied: "Potentially there may be. I can't say categorically thenumber will stay as it is. There could be a situation where we willincrease the numbers as well."
He noted branches were becoming sales, rather than transactions-focused, outlets.
And he raised the possibility of having branches in othercompanies' outlets, noting NAB's presence within the stores of largeAustralian retailers.
Grimshaw, who has spent the last couple of weeks "getting roundto see as many people in the organisation as time permits", willalso continue Clydesdale's focus on products and services which willentice wealthy customers.
Grimshaw, who is living in Pollokshields on Glasgow's South Sidewith wife Sue, daughters Victoria and Laura, and son George, is afan of devolution.
Clydesdale's chief executive before Wright was Fred Goodwin, nowchief executive of Royal Bank of Scotland. Goodwin earned thenickname "Fred the Shred" while in this role.
Asked if he had any nicknames, Grimshaw replied: "Not to my faceanyway. He joked: "Fred the compassionate. No, nothing like that."
A Clydesdale spokeswoman noted NAB was the largest employer inthe financial sector in Glasgow, with 3200 employees within the cityboundary.
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