Citizens replaces its chief executive

Citizens Financial Group Inc. chief executive Stephen D. Steinour will step down as head of New England's second-largest bank next week, the company said today.

Steinour's role will be taken on by Ellen Alemany, adding to her duties as head of the Royal Bank of Scotland's North American operations. James G. Connolly, currently head of Citizens' business banking unit, has been promoted to president.

Alemany, a former top executive at Citigroup Inc., took over as head of the Royal Bank's American operations a year ago.

The changes cap a series of reorganizations at the Rhode Island parent of Citizens Bank, which expanded its reach across the Northeast and Midwest in the last 15 years under the leadership of Lawrence K. Fish. Fish stepped down from an active role in running the bank last year, but he remains nonexecutive chairman of Royal Bank's American division.

Steinour, who has held his current post since 2005, is leaving by March 11 "to pursue other business interests that will enable him to spend more time with his family,'' Citizens said in a statement today.

(By Ross Kerber, Globe staff)