The National Australia Bank Ltd. (ASX: NAB) share price was edging higher this morning after the bank announced they had appointed a new board member.
NAB is one of the four largest banks in Australia in terms of market capitalisation, earnings and customers. However, in 2019, it was Australia’s largest lender to businesses and has operations in wealth management and residential lending. It also operates the online-only Ubank.
NAB’s New Board Appointment
NAB announced via an ASX update the appointment of Ms. Kathyrn Faag as a non-executive director, effective December 16, 2019.
Ms. Faag is an experienced director with extensive leadership experience across a range of industries, including banking and has previously been a board member of the Reserve Bank of Australia.
She has also previously served on the board of Australian and New Zealand Banking Group (ASX: ANZ) and currently serves as Chairman of Boral Limited (ASX: BLD). She is also a non-executive director at Incitec Pivot Ltd (ASX: IPL) and Djerriwarrh Investments Limited (ASX: DJW).
Speaking on her appointment to NAB’s board, Ms Fagg said: “I believe a strong banking system is essential for our nation’s economic wellbeing and I look forward to bringing my knowledge and experience from multiple sectors, including banking, to address the challenges and opportunities for NAB earn the trust and respect of its shareholders, customers, employees and the broader community.”
NAB, like all of its banking peers, have been through a difficult period in the wake of the Royal Commission with the bank announcing further remediation costs only two weeks ago.
Whilst today’s appointment is unlikely to have any meaningful impact on the share price in the short term, it may prove important for the longer-term stability of the bank. A strong board and fresh perspectives are crucial at a time when the banking landscape is undergoing significant change.
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At the time of publishing, Luke has no financial interest in any companies mentioned.
