LONDON (Reuters) - Tesco Bank has named Ulster Bank Chief Executive Gerry Mallon as its new CEO, the bank which is owned by Britain's biggest retailer Tesco (>> Tesco) said on Wednesday.

Mallon will take up his job towards the end of July 2018, Tesco Bank said, replacing Benny Higgins who is due to retire in February.

"Electing a young and energetic leader to target growth across the domain of financial services product in a world of burgeoning open access to banking data would seem to us to be a sensible move," analyst John Cronin at Irish broker Goodbody said about Mallon's appointment.

Iain Clink, Tesco Bank's deputy chief executive, will serve as its interim CEO from March 1 until Mallon joins in July, Tesco Bank said.

Ulster Bank, owned by Royal Bank of Scotland (>> Royal Bank of Scotland Group), earlier confirmed Mallon's departure and said he would remain with the Irish bank while a replacement is identified.

Founded in 1997 as a joint-venture with the Royal Bank of Scotland (>> Royal Bank of Scotland Group), the Tesco Bank came under Tesco ownership in 2008.

The bank has grown since then and makes annual profits of 200 million pounds and serves 8 million bank accounts, mainly through outlets in Tesco supermarkets.

(Reporting by Lawrence White and Emma Rumney; editing by Jason Neely and Jane Merriman)

By Lawrence White and Emma Rumney

Stocks treated in this article : Tesco, Royal Bank of Scotland Group