Q&A: RBS’s Middle East CEO on why arrogance has no place in investment banking

Simon Penney, chief executive for the Middle East and Africa at Royal Bank of Scotland, who oversees its investment banking activity in the region, has been with the same firm for over 12 years. You might assume, therefore, that he’s not the overly adventurous type. The reality is, however, that he has travelled the world and believes that it’s distinctly possible to carve out an exciting and diverse career in the same company.

How did you break into the financial services industry? What advice would you give others looking to do so?

I graduated with an engineering degree, and my first job was working for the project finance division of a construction company, Taylor Woodrow. I spent some time in Malaysia with them and following that, studied for an MBA, which provided an impetus to my career. I then went on to work within the advisory division at PwC, before moving to ABN AMRO 12 years ago.

Anyone wishing to enter the financial sector now has to be incredibly tenacious, flexible and driven by success. Over the past four years, as costs have been cut and headcount reduced in the investment banking industry, there are fewer places to hide. Everyone is far more visible, and being able to make a valuable and tangible contribution is key to career longevity.

Has your career been conventional or capricious?

I would say capricious. People think that financial services careers are very conventional and linear, but the reality is that there’s a vast array of choices, from various sectors, sub-sectors and product areas as well as geography. I’ve worked in the UK, Malaysia and South Africa, before moving to the Middle East, , and worked across sponsored equity, project finance and now investment banking. It’s been far from linear.

What matters most, talent or hard work?

Both. I’ve met a lot of talented people who are not particularly hard workers, and people without a prodigious amount of talent who have progressed through hard work. Obviously, if you don’t have any talent you won’t make it very far, but the best originators I’ve met have had elements of both.

What tips would you offer investment bankers with aspirations to move to the Middle East?

Network and develop relationships with key people in the region. In the Middle East, more than any other part of the world, relationships are the most important element to success. Understanding how the business community here works, developing a strong personal network and building a bond of trust will get you ahead.

What are the main benefits and downsides of working in the region?

The main benefit is that it’s a very entrepreneurial culture, one born out of trading and it’s very evident in the way that people do business here. I hate to use the term ‘emerging market’, but the growth opportunities in the Middle East are greater than in developed economies – GDP is growing by 5-19%, depending on the country and this is feeding through into the banking sector.

The biggest downside, from an investment banking point-of view, is that it’s very competitive. A lot of international banks are grappling with their operating model in the Middle East; many firms started in the region with significant operations with the expectation that business opportunities would begin to reflect that investment. The expected volume of deals has yet to materialise, and many firms have pulled back to Europe or the US, or reduced headcount in the region. It’s still a young market in this part of the world, and my expectation is that investment banking will grow.

Investment banking has been through a tough time in the Middle East recently. Are you optimistic that the situation will improve?

Working in investment banking you have to be an optimist! As I mentioned, most Middle Eastern countries are growing and the high oil price is feeding through to the real economy. There’s also very significant infrastructure investment and all of this will generate more business for the banks.

In the short-term, I think M&A and equity capital markets will still be challenged, but debt capital markets activity is still relatively robust and this will continue.

What would you always advise people to do before stepping into an interview with you?

Come prepared, do your research on both your business area and the company and don’t expect me to do the talking. You’d be amazed by the number of people who come to interview who know little about RBS’s operations in the Middle East, or who ask questions they could have easily researched themselves online.

I want someone who has a strategy and who knows what contribution they could make to the business on day one in the job. We’re not looking for someone to work 9-5; they need to have the foresight to envisage what value they can add to the bank – this is surprisingly rare.

What is a surefire way NOT to get hired by you? 

Misplaced arrogance. There’s a difference between someone who is a high-performer and an arrogant individualist. In the current climate, being a team player is more important than ever.

You’ve been with RBS for the past 12 years. What advice would you give to someone on career progression and longevity within the same company?

Two things: make it happen for yourself and get yourself noticed. On the first part, make sure you have a clear vision about what you want to achieve and what options are available to you. Take advantage of the diversity of opportunities on offer – it’s feasible to start as an equity analyst and end up as COO, for example. Also, seek out a mentor; having someone with a few grey hairs who can guide you through your career will help a lot.

To get yourself noticed, networking is integral. This means both internally within the organisation and externally with clients. No one is going to hand you a promotion simply because you’ve been with a company for a long time, you need to take control of your own career.