Commonwealth Bank unpicks private office unit for ultra-wealthy customers, jobs cut

CBA’s unit for ultra-wealthy customers has been dismantled, spurring job losses.

Commonwealth Bank has disintegrated its private office team that looked after ultra-high net worth customers. Picture: NCA NewsWire / Jono Searle

Commonwealth Bank has disbanded a unit within its private bank that looked after ultra-wealthy customers, causing job cuts in the latest of a string of changes in the division.

The Australian understands the move will impact as many as 20 staff with about 15 roles being cut, and several being redeployed to other areas. The job losses are said to include head of the private office unit Ralf Haase, whose LinkedIn profile says he started and managed the division for more than 11 years.

The bank’s website says Commonwealth Private Office was created to “extend the services” of the private bank to help ultra-high net worth individuals and their families “plan and achieve their goals and aspirations”.

Customers wanting access to the private office typically have to have investable assets of $10m or more.

A CBA spokesman wouldn’t comment about the specifics of the changes in private office or individuals, but noted: “Commonwealth Private continues to offer financial advice to current and future Australian-based clients, including family office clients, with complex advisory and investment needs under wholesale advice arrangements.”

Sources said the ultra-wealthy unit led by Haase had survived a number of other reviews over the past seven years, although during those times had managed to justify retaining a distinct team.

The shake-up follows the announced departure of CBA’s private banking boss Marianne Perkovic last month, as revealed by The Australian. Ms Perkovic, who fronted the Hayne royal commission, is parting ways with the bank after more than 10 years.

She fronted the 2018 royal commission for CBA as she was previously executive manager of wealth management advice before taking the role as head of private banking in 2016.

Ms Perkovic is set to leave CBA in October, after the private bank moved within the last few months to sit within the retail division from the business banking unit.

The latest changes see the private bank have a national wealth advice team, including some private office staff and state advice employees, organised on a regional basis. That team will report to the executive general manager of advice, who in turn will report to Ms Perkovic’s replacement as private bank boss.

The shifting of CBA’s private banking unit into the retail division is unusual given the bulk of its rivals have a structure that sees that unit report to business banking. Private banking covers high net worth individuals and sophisticated investors, which CBA classifies as those with annual income of more than $450,000 and the “intent to invest or borrow” $2.5m.

CBA’s has pitched the changes in the division to customers as designed to boost service for private banking customers, with a focus on home buying, deposits, financial advice and investments.

Over at National Australia Bank, new chief executive Ross McEwan made changes to the reporting line for the private bank in May.

He brought together NAB’s private bank, JBWere and nabtrade under Justin Greiner in an effort to streamline the operations with a bigger focus on private wealth and relationships.

CBA reports full-year profit results next month and investors are keen to find out whether the bank defers a decision on its final dividend or significantly cuts the payment given the fallout from COVID-19. Westpac and ANZ have deferred calls on first-half dividends, while NAB raised $4.25bn in capital but slashed its interim dividend to 30c per share.

The banking regulator has urged banks to seriously consider deferring dividend decisions, or making substantially reduced payments, while the pandemic grips the economy and causes a spike in loan losses.