RBS has named Alison Rose as its new chief executive,
Rose, who has worked at the bank for nearly three decades is the first woman to lead one of the UK’s big four banks.
She will replace the incumbent Ross McEwan in November.
She will be paid more than her predecessor, with her annual salary set at £1.1m compared with Mr McEwan’s £1m.
RBS chairman Howard Davies said: “Following a rigorous internal and external process, I am confident that we have appointed the best person for the job.”
Rose said she was “looking forward to getting started” in her new job, adding: “Maintaining the safety and soundness of this bank will continue to underpin everything we do.”