Gary Hoffman, the banker who led the transformation of Northern Rock after its nationalisation, is being lined up as the following chairman of the Coventry Constructing Society, Britain’s second-biggest.
Sky Information has learnt that Mr Hoffman’s appointment by the mutual is awaiting clearance from regulators and could possibly be introduced later this month.
Assuming the transfer is accredited by watchdogs, it’s going to see one of many UK’s most senior monetary executives changing Peter Ayliffe, who has been appearing as interim chairman since Ian Pickering died final autumn.
Mr Hoffman, who was born in Coventry, has retained sturdy hyperlinks to the town, having tried on a earlier event to guide a takeover of its League Two soccer membership from Sisu Capital, its controversial hedge fund proprietor.
A Metropolis supply stated this weekend that Mr Hoffman had lately resigned from the board of Visa Inc, the New York-listed funds large, as a way to take up the Coventry Constructing Society position.
The Coventry, which had mortgage loans of just about £36bn on the finish of final 12 months, is the UK’s second-largest constructing society, behind solely the Nationwide.
It reported pre-tax income for 2017 of £243m and cemented its place as a high ten UK mortgage and financial savings supplier.
Mr Hoffman’s arrival, which one supply described as “a serious coup” for the mutual, will underline the dimensions of the Coventry’s ambitions beneath Mark Parsons, its chief govt.
After leaving Northern Rock, Mr Hoffman had a stint on the helm of NBNK Investments, a car set as much as purchase financial institution belongings from lenders rescued by UK taxpayers.
NBNK was near buying a whole lot of branches from Lloyds Banking Group however misplaced out to the Co-op Group, which was in the end compelled to desert the deal because it too teetered getting ready to collapse.
Mr Hoffman then grew to become chief govt of Hastings, the motor insurer, steering it via its public itemizing earlier than stepping as much as change into govt chairman earlier this 12 months.
His appointment on the Coventry will come at a time of rising headwinds for constructing societies and different mortgage lenders amid a softening of the UK housing market.
“Shopper confidence fell throughout 2017 and is now subdued; that is unlikely to alter till there may be extra readability across the UK’s future relationship with the EU,” Robin Fieth, chief govt of the Constructing Societies Affiliation, stated in February.
“This uncertainty could put some homebuyers off shopping for within the close to time period.”
The Coventry warned in its annual outcomes presentation that internet curiosity margins – a key monetary metric for lenders – would in all probability lower this 12 months due to pricing strain within the mortgage market “and its dedication to guard financial savings charges so far as potential”.
A spokesman for Coventry Constructing Society and Mr Hoffman each declined to remark.