Ross McEwan named new RBS chief executive Royal Bank of Scotland has announced a sharp turnaround in its fortunes as it confirmed that Ross McEwan, the head of its retail bank, will replace chief executive Stephen Hester on 1 October. The group, which is 81 per cent owned by the taxpayer, also announced a £185 million increase in its bill to cover the cost of mis-sold payment protection insurance (PPI), taking total provisions to £2.4 billion. McEwan, who joined RBS in September from Commonwealth Bank of Australia, will be paid a basic annual salary of £1m, lower than Hester's £1.2m pay deal, but has asked not to receive an annual bonus for 2014 or for the rest of this year. The New Zealander said: "I look forward to leading RBS as it plays its full role in supporting our customers. We have a lot of work ahead of us and I'm very much looking forward to getting started. Chancellor George Osborne welcomed McEwan's appointment and said he was impressed with his "vision of RBS as a strong, UK-centred corporate bank that is focused on supporting the British economy." He added: "He'll provide the leadership RBS needs as the bank puts the mistakes of the past behind it, and the government seeks to get the best value for the taxpayer from the money the last government put into the bank." Confirmation of McEwan's appointment came as RBS reported a pre-tax profit of £1.4bn for the six months to 30 June, compared with a £1.7bn loss for the same period a year ago. Outgoing boss Hester said: "RBS has now reported the first two consecutive quarters of overall profit since 2008. The prospects of attractive future profits and dividends to RBS shareholders are much improved. Cenkos banking analyst Sandy Chen said: "At first glance, the RBS steady restructuring story remains on track, and we still see numerous opportunities for self-help."