Former Perpetual managing director and chief executive Geoff Lloyd will lead MLC as NAB moves to divest its wealth management business, as announced in May 2018.
At the time, NAB group chief executive Andrew Thorburn said that the sale was influenced by NAB’s desire to simplify its operations, stating that complexities were “killing” the bank.
“We need to simplify the bank. The complexity in the bank is just killing us. We need to simplify. And so what MLC divestment will do is enable us to have a simpler bank — and there’s huge opportunities in the bank,” the CEO said in May.
NAB is therefore looking to exit its advice, platform and superannuation and asset management businesses (currently operating under MLC and other brands) to allow a focus on a “simpler” wealth offering through nabtrade and JBWere.
The separation is scheduled for the end of the 2019 calendar year via public market options including demerger and IPO. However, NAB has said that it is “maintaining flexibility to consider a trade sale”.
It is expected that there will be ongoing arrangements between NAB and MLC to offer NAB customers continued access to advice and products to meet their wealth management needs.
After announcing the appointment of Mr Lloyd as MLC CEO this week, Mr Thorburn said that the new head of the wealth business was “a standout leader and the right person to lead through the transaction, establish a new standalone business and build it for the future”.
Mr Lloyd joins NAB after six years as CEO and managing director of ASX-listed financial services group Perpetual and will report directly to Mr Thorburn.
The NAB CEO elaborated: “Geoff has been in wealth management his entire career and has a vision and passion for improving the financial prospects of Australians.
“He is a highly regarded executive with a proven track record of delivery, having successfully driven a major turnaround program at Perpetual through a period of significant structural change.”
Mr Thorburn continued: “The core MLC wealth management business is strong with great growth prospects, and I am confident Geoff will not just assist in a successful transaction but also help realise the full potential of the new business.”
Mr Lloyd said that he was looking forward to starting in the new role, adding: “MLC has a great heritage and is a diverse portfolio of high-quality and well-regarded businesses and brands that I am very passionate about.
“This is an exciting challenge and opportunity to lead a business that is well positioned to grow and continue delivering for clients in the decades ahead.”
Mr Lloyd said that he was looking forward to playing a role in “responding to the external challenges” for the industry and working to grow “confidence and trust” in the service delivered to customers and “helping them secure their financial future”.
The new MLC CEO has over 20 years’ experience in the financial services industry. Before commencing at Perpetual, he served as general manager, advice and private banking, at BT Financial Group (BTFG) following the merger with St. George’s wealth management business.
Prior to the merger, Mr Lloyd led St. George’s wealth management portfolio and was a member of the St. George Bank Executive Group reporting to the CEO, and had also held several senior positions at BTFG, including chief legal counsel and head of the customer and business services division. Mr Lloyd is also chairman of the Financial Services Council, a role he assumed in July 2016, and he has completed the Harvard Business School Advanced Management Program and holds a Master of Laws, UTS.
His appointment as MLC CEO is subject to regulatory approvals, including any applicable APRA registration requirements.