Abbey sets up new division for e-banking

Abbey National, the high street bank, yesterday announced a series of changes in its top management structure which will result in Mac Millington, group information technology director, taking charge of a new division responsible for developing e-banking ventures.

His role as head of IT will be taken up by Yasmin Jetha who will also have wider responsibility for the group's infrastructure.

Ms Jetha is expected to be promoted to the board when Charles Villers, deputy chairman retires early next year.

The new division, which Mr Millington heads, will take in responsibility for four mainly online businesses:

Cahoot, the group's standalone internet bank which is due to be launched next month;

Prosper the new online wealth management business;

The existing offshore businesses;

City Deal, the execution only stockbroker.

The changes are part of a wider reorganisation in which the current management structure will be replaced by four new "customer-facing" divisions built around business areas such as retail, business and wholesale banking, and four new infrastructure areas, covering departments such as human resources, IT and risk.

Mark Pain, the finance director, denied that the moves were a response to the sharp fall in Abbey's share price which has seen the value of the bank nearly halved in the past 12 months.

Abbey National shares rose 34p to 819p.