CBA hands CEO role to retail banking boss Matt Comyn

THE Commonwealth Bank has appointed an insider to the role of group chief executive despite the scandals that have engulfed the bank, Australia’s biggest lender, in recent years.

THE Commonwealth Bank has appointed an insider to the role of group chief executive despite the scandals that have engulfed the lender, in recent years.

Matt Comyn, the 42-year-old head of the CBA’s retail banking business, will succeed Ian Narev as chief executive in April.

Announcing the appointment this morning, CBA chair Catherine Livingstone said he was chosen after a “global and local search”.

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Mr Comyn had the best mixture of skills to “address the regulatory and reputational challenges and recognise evolving community expectations”, she said.

Matt Comyn will become CBA chief executive in April.

It comes at a difficult time for the bank and the broader Australian banking industry ahead of the commencement next month of the royal commission into misconduct in the financial services sector.

The CBA, Australia’s biggest lender, has been at the centre of string of scandals in recent years.

Among them, it has been accused by the Australia’s anti-money-laundering watchdog of failing to report more than 50,000 suspect transactions carried out through its ATM network.

Mr Narev resigned as that scandal emerged, although the bank insists his resignation is not connected.

He later conceded to the Herald Sun that the bank had mistakes.

The CBA stands accused of allowing failing to report to authorities more than 50,000 suspect transactions carried out through its ATMs.

Mr Comyn is widely regarded as a rising star at the bank, and as a protégé to Mr Narev.

But some analysts had speculated that his leading the group’s retail banking operations during a scandal-plagued period would affect his chances of becoming group chief.

The retail banking business, which covers products including residential mortgages and personal credit card and savings accounts, accounts for more than half of group profit.

Net profit in the retail bank has grown 60 per cent since Mr Comyn was appointed chief executive of that business six years ago.

He will receive $2.2 million a year in base pay and be eligible for a short-term bonus of the same amount.

Shares in the CBA barely moved in early trade today, up 3c, or 0.04 per cent, at $78.68 shortly after 10.30am.