CBA, chief to part ways at end of financial year

COMMONWEALTH Bank chief executive Ian Narev will step down by the end of June after Australia’s largest bank decided to “deal with speculation” over his position following allegations the lender breached money-laundering and terrorism-financing laws.

Chairman Catherine Livingstone said CBA retained confidence in Mr Narev but the New Zealander, who has led the bank to a series of record profits and last week said he wanted to extend his sixyear tenure, is on his way out.

“In discussions with Ian, we have ... agreed it is important for the business that we deal with the speculation and questions about his tenure,” Ms Livingstone said in a statement to the ASX. Today’s statement provides that clarity and will ensure he can continue to focus, as CEO, on successfully managing the business.” Ms Livingstone denied that the timing of Mr Narev’s departure had been brought forward and said succession planning had been under way before AUSTRAC filed civil proceedings in the Federal Court against CBA on August 3.

“This statement has been rushed,” she said.

Nonetheless, Commonwealth Bank cited its damaged reputation when revealing Mr Narev’s total remuneration for the 12 months to June 30 was down 55 per cent. not