Mr Cicutto's leadership was not admired by the markets

Frank Cicutto had been under pressure since National Australia Bank warned last month that unauthorised trading could cost A$360m (�153m; $277m).

Mr Cicutto, who has run NAB since 1999, will be replaced by the head of its British operations,John Stewart.

NAB's shares bounced by 2% on the news, as investors cheered the departure of Mr Cicutto, seen by many as uninspired.

Catalogue of errors

Mr Cicutto is not only carrying the can for the rogue-trading loss, an incident which is relatively limited in impact.

NAB UK head John Stewart will take the firm forward

There have been broader questions about NAB's strategy, characterised by one analyst as aiming to be "a national champion, taking on the world".

An ambitious series of international ventures left NAB exposed at home, analysts argued.

NAB has also had to suffer huge write-downs in the value of its former US mortgage arm.

And the bank has at times been indecisive, for example leaving investors in suspense over whether it planned to acquire Australian insurance group AMP.

Vanessa Beenders, a banking analyst with ComSec in Melbourne, said Mr Stewart was well-regarded in the financial markets.