NAB's stock rises as Chronican named chair

NAB shares have performed well at the market open following the lender's appointment of Philip Chronican as chairman.

Interim NAB chief executive Philip Chronican has been named as the bank's new chairman. (AAP)

NAB shares have opened strongly with investors apparently welcoming the lender's appointment of Philip Chronican as chairman.

The NAB board unanimously voted to give its interim CEO the task of replacing Ken Henry later this year in one of the lender's first major steps in rebuilding its reputation following its royal commission mauling.

NAB shares gained the most of all the big four banks when the market opened on Thursday, outpacing their rivals and the financial sector as a whole.

At 1015 AEDT, they were up 0.79 per cent to a four-month high of $25.66.

Westpac, CBA and ANZ were between 0.59 and 0.18 per cent higher, compared to a 0.38 per cent rise from the ASX200 financials.

NAB shares have drifted higher in the month since Dr Henry and chief executive Andrew Thorburn resigned, and had risen for six straight sessions ahead of Thursday's market open.

Mr Chronican's appointment as chair was announced on Wednesday and he immediately said that "much needs to change in a meaningful way" at a lender that was roundly criticised by Kenneth Hayne's final royal commission report, which could suggest the bank will look outside for a new chief executive.

The extent of Commissioner Hayne's criticism could also mean NAB may not want to make internal appointments to both its most senior roles.

"Much needs to change in a meaningful way at our bank," Mr Chronican said.

"We have unfortunately been found wanting in too many areas when it comes to our customers, and I am determined to ensure that change happens to ensure we meet and exceed their expectations."

Dr Henry and chief executive Andrew Thorburn tried to ride things out after the royal commission report released on February 4 singled NAB out as the worst offender of the big four banks and hit out at its executive team for not learning lessons.

Both announced their intention to resign three days later.

Mr Chronican only started in his role as interim CEO on Friday, but told the board he didn't want to be considered for the role on a permanent basis.

That leaves former NSW premier Mike Baird, the bank's head of retail, as a leading internal candidate, although many believe he has not been with NAB long enough to get the top job this time around.