National Australia Bank has confirmed that Ahmed Fahour has stepped down as chief executive of its Australian and Asian banking units, a role which included overseeing MLC, the bank’s wealth management division.

Mr Fahour has been appointed interim CEO of the A$4 billion ($2.6 billion) Australian Investment Partnership, an initiative which has been set up to refinance threatened commercial property businesses.

Mr Fahour joined NAB in September 2004 as CEO Australia, assuming responsibility for retail, business and corporate banking in Australia and Asia, along with retail investments, insurance and wholesale superannuation.  In 2008, he oversaw A$350 billion of assets, A$100 billion of funds under management and over A$500 billion of assets under custody.

Michael Chaney, NAB Chairman, said: "Ahmed has transformed the NAB's business in the Australian region. He initiated and carried out a programme of change which has been of great benefit to all stakeholders.”

In a statement from the bank, NAB Group chief executive Cameron Clyne said that Mr Fahour had left the Australian business in excellent shape and well positioned to meet the challenges inherent in the global economy.

Mr Farhour is quoted as having said he was leaving the business after nearly five years because the job he was employed to do had been completed successfully.

According to media reports, for several years Mr Farhour had been frontrunner to become NAB global chief executive - the role which went to Mr Clyne last August.

Last week, media reports suggested that Joseph Healy, NAB’s business and private banking head at National Australia Bank, is in line for a major promotion in a forthcoming restructuring. 

In other news, in January MLC confirmed that it would be cutting 120 jobs from its Melbourne and Sydney operations. The move followed Australia’s ANZ and Macquarie Bank both announcing that they would cut hundreds of jobs in December.