John Durie’s CEO survey 2014: Ian Narev, CBA

“WE still have a potpourri of economic indicators: seeming improvements in the US, reasonable stability in China, but on-going stagnation in Europe and some geopolitical instability.”

CommBank CEO Ian Narev

1: Has the corporate outlook improved and if so what are your investment plans?

We still have a potpourri of economic indicators: seeming improvements in the US, reasonable stability in China, but on-going stagnation in Europe and some geopolitical instability. The economic base in Australia is sound. But it needs to be buttressed by clear long-term economic policy that transcends politics. From an investment perspective, we will continue to invest for the long term. Some of our best investments – such as our technology platform – were made in times of relative economic uncertainty.

2: What is the disruptive technology you fear most, how will you beat it and name the three other biggest challenges and opportunities?

It is impossible to name a single trend. Mobility, data, and design thinking all provide opportunities for attacker business models. But equally, they are opportunities for us. Our approach remains to innovate from a state-of-the-art core system. That requires, above all, leaders who understand the opportunity, and can mobilise a culture. Cyber-security is also a major national priority – we welcome the review announced by the prime minister.

3: What are your shareholders’ key concerns?

We are owned by nearly 800,000 Australian households directly, and millions more through their super. For many of these households, dividend income from CBA is a major part of their annual income, and their shareholding in CBA is a material part of their wealth. They want us to do whatever we can to keep their company successful into the long-term. They also want to see regulation that strikes the right balance between growth and safety.

4: What are the top three issues facing the nation and how should they be resolved?

We must broaden our export economy beyond our resource industries, while recognising that the on-going success of our major resource and energy companies is critical. We need policies that encourage businesses to create jobs, particularly for younger Australians. And we need, collectively, to keep working to reduce disadvantage in our communities, wherever and however we see it. To achieve these goals, thinking long-term is the key. We need businesses to recognise their long-term role in strengthening the economy. And we need elected representatives who are willing to work together, even where they don’t agree, to think beyond electoral cycles and deliver clear budgets, and constructive long term economic policy for the good of the country.

5: What should be top of the tax reform agenda?

Many parallel debates are happening in this area: GST, multinational corporations, overall taxation levels. They need to be tied together into a thorough review of how to ensure our tax system can contribute to Australia being prosperous for everyone for the long term.