Senior changes imminent at CBA
(3 October 2017 – Australia) The Commonwealth Bank of Australia (CBA) has announced several changes to its senior ranks in the near future.
The bank’s chief executive, Ian Narev, will depart after around eight years in the role following a search and appointment of his replacement while the group’s head of wealth management, Annabel Spring, departs in December. In addition, the CEO of the Bank’s New Zealand subsidiary, Barbara Chapman, announced she would retire in April next year.
Chapman has led the New Zealand business since 2011.
ASB is the second largest bank in New Zealand, where Australia’s big four banks control around 90 percent of the market.
The departures come as the bank faces inquiries into issues including ATM money laundering and against its insurance business.
ASB Bank operates the life insurance business Sovereign, which was last month sold to Hong Kong-based AIA Group as part of the A$3.8 billion sale of CommInsure.
The bank has also put its global asset management arm up for review ahead of a potential sale or float.
Speaking of her career, Chapman said her time as ASB CEO was the highlight, while she is “excited to be able to take some time to think about areas of future interest and challenge”.
ASB chairman Gavin Walker said Chapman was “passionate and effective” chief executive and had played a key role in the bank, lifting annual profit from $NZ568 million in 2011 to over $NZ1 billion in the most recent financial year-end.
CBA is facing questions from New Zealand regulators as its 2013 rollout of its smart ATM network allowed its customers to deposit under $10,000 without identification. CBA’s intelligent deposits machines are at the centre of the money laundering and terrorism financing allegations, as they failed to properly report transactions to the regulator.
In addition to those senior departures, non-executive directors Harrison Young and Launa Inman will retire after the bank’s annual meeting in November, while non-executive director Andrew Mohl, a former CEO of AMP, to step down a year later.
ASB reported a 13 percent lift in cash profits in the last financial year from NZ$914 million to $NZ1.03 billion, as a result of lower bad debts and cost-cutting. Net profit rose 17 percent to $NZ1.07 billion.
CBA acquired a 75 per cent shareholding in ASB in 1989 and bought the rest in 2000.
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