Commonwealth Bank chair backs in Matt Comyn for another three years as chief executive

Commonwealth Bank of Australia has backed in chief executive Matt Comyn to run Australia’s biggest mortgage lender until at least 2028, stretching his tenure out beyond 10 years.

CBA chair Paul O’Malley on Wednesday met speculation about the bank’s succession planning head-on, telling that its annual general meeting in Brisbane that while he had been re-elected at the AGM for a final three-year term, his successor would handle the appointment of a new chief executive.

“One of the board’s key roles is appointing the CEO and ensuring appropriate succession plans,” Mr O’Malley said.

“We have been pleased with the performance of Matt as CEO.

“Our intention and expectation is that the decision as to the appointment of the next CEO will be made by my successor as chair.”

Mr Comyn’s address to CBA shareholders gathered at the Gabba reiterated his messaging of the past year - that some customers are still hampered by cost-of-living pressures but that the Australian economy is regaining momentum.

“This past year has brought some relief through easing inflation, lower interest rates and tax cuts,” he said.

“Many households are now experiencing a rise in disposable income, while savings and consumer confidence are growing.

“However, we recognise cost of living remains a challenge for many.

“Households remain stretched and global issues are creating uncertainty.”

The bank, which makes up about 12 per cent of the S&P-ASX200 index, has had a record year on the share market, with its shares storming to $192 in June, capitalising CBA at more than $300 billion, before a retreat.

In August, CBA announced a 4 per cent rise in annual cash profit to $10.25b — bettering the $10.16b returned for 2023. Statutory earnings were 7 per cent higher at $10.13b.

The result was accompanied by a $2.60-a-share fully franked final dividend, increasing the annual payout to $4.85 a share. The dividends distributed $8b to about 13 million Australian investors.

CBA attributed the record result to higher business and personal lending, and lower loan impairments on the back of an improving economic outlook that has boosted consumer confidence.

Wednesday’s AGM proved no trouble for the CBA board, which was grilled by shareholders, unionists and activists about branch closures, the threat to jobs posed by the growing adoption of artificial intelligence and climate lending policies.

The Financial Sector Union used the meeting to renew its concerns about Ai, demanding “genuine” consultation with staff over the deployment of the technology, and the offshoring of technology and retail services jobs to India.

Mr O’Malley said CBA’s job numbers would remain largely unchanged for “a long, long time”, insisting that while the bank would draw on offshore technology to fight scrams and support its digital network, Australian staff would remain at the core of its business.

“We want to have the best engagement and customer service we can,” he said.

“But we need to do that from an Australian context, with Australian employees delivering Australian customer services.

“We have 37,000 employees in Australia, I see that being the case for going forward for a long, long time.”

Mr O’Malley assured on questioner that CBA had no plans to close its ATMs, having last year closed WA lender Bankwest and transitioned it to digital-only bank.

“We invest a lot of money in making sure cash is available, even though it has much more diminished use,” he said.

“CBA is supportive and working to make sure that remains the case.”