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Ian Narev to leave CBA

14 August 2017

Narev, 50, would be gone by the end of the current financial year after nearly seven years in the job, a tenure marked as much by record profits as allegations of serious misconduct including insurance scams and poor financial advice.

Sydney-based Commonwealth Bank of Australia has been roiled by a major money-laundering scandal, which saw CEO Ian Narev's bonus cut to zero.

CBA is also refunding approximately $586,000 in premiums to about 10,000 customers after it over-insured these customers for Home Loan Protection CCI taken out with a Commonwealth Bank home loan, resulting in the over-charging of premiums.

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"This statement has not been rushed", Livingstone told journalists, referring to the timing of Narev's retirement announcement amid daily negative headlines for the bank.

A better-than-expected 4.6 percent rise in annual profit to A$9.88 billion, posted on August 9, failed to appease investors' concerns. The bank has suffered damage to its reputation from problems in its financial planning business and its insurance operations.

CBA's annual report, published today, showed Narev's remuneration for the last financial year was $5.5 million, down from $12.3 million last year.

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"Succession planning is an ongoing process at all levels of the bank", she said.

On Monday, CBA said it will ease Narev out by next summer.

Narev has been head of Australia's largest bank by market capitalisation since December 2011.

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As the country's biggest lender is engulfed by allegations it breached anti-money laundering rules, Livingstone said Narev would retire by June 2018, subject to when it was able to find a replacement.

Ian Narev to leave CBA