Ross has been CEO at RBS since 2013 and announced his resignation in April this year to join NAB no later than April 2020.

He will also be invited to join the NAB board, subject to regulatory approval.

Ross said: “It is a privilege to return to Australia and lead NAB at a crucial time for the bank, its customers, employees, shareholders and the broader community.

“There are a number of areas where NAB can extend its lead, such as business banking, agriculture and health, and other areas where I believe we should consistently lead, such as customer service.

“We must also meet and exceed the expectations of our many stakeholders.

“It is essential that I protect and accelerate the bank’s transformation programme.”

He will receive a fixed remuneration of $2.5m per annum.

Philip Chronican, chairman-elect at NAB, will transition from his role as interim CEO in mid-November, replacing Dr Ken Henry.

Philip said: “Ross McEwan is the ideal leader for NAB as we seek to transform our operations and culture firmly around leading customer service, experience and products.

“Ross brings a compelling range of experience across finance, insurance and investment, with a track record of delivering important and practical improvements for customers.

“RBS has been through many of the same challenges which NAB now faces around culture, trust and reputation.

“We have secured a well proven CEO and reached agreement on an appropriate remuneration package when compared with domestic and international peers and other sectors.”