The Johannesburg-based Nedbank Group, majority-owned by UK insurer Old Mutual, has appointed Mike Brown, its chief financial officer, as chief executive officer designate.

Mr Brown will take full control of South Africa's fourth biggest bank on February 2010, replacing Tom Boardman. In a statement, Nedbank said it had considered both local and international candidates.

"By appointing an internal candidate we will ensure stability at a critical time in the banking sector locally and globally," Nedbank group chairman Reuel Khoza said in the statement.

"Appointing Mike as chief executive designate at this stage will allow for a smooth handover with Tom over the next year," he added.

Mr Brown, who has been Nedbank's chief financial officer since 2004, said the company would continue to work closely with Old Mutual and build its retail franchise.

Nedbank also said a selection process to find a new chief financial officer had been started and Mr Khoza said the firm would look both internally and externally.

Nedgroup Investments, the bank’s wealth management arm, has offices in London and the Isle of Man; assets under management are currently $920 million.