By Scott Murdoch SYDNEY (Reuters) -Commonwealth Bank of Australia Chief Executive Matt Comyn will remain at the helm of the country’s largest lender for at least the next three years, its chair said on Wednesday, heading one of the most expensive banks in the world. Chairperson Paul O’Malley told the bank’s annual meeting in Brisbane […]
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Commonwealth Bank keeps CEO Comyn in top job until at least 2028
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By Scott Murdoch
SYDNEY (Reuters) -Commonwealth Bank of Australia Chief Executive Matt Comyn will remain at the helm of the country’s largest lender for at least the next three years, its chair said on Wednesday, heading one of the most expensive banks in the world.
Chairperson Paul O’Malley told the bank’s annual meeting in Brisbane the search for the next chief executive would begin after his own next three-year term on the board ends.
O’Malley was re-elected at the meeting, meaning his next term is due to end in 2028.
“We have been pleased with the performance of Matt as CEO,” O’Malley told the meeting.
“Our intention and expectation is that the decision as to the appointment of the next CEO will be made by the board led by my successor as Chair.”
Comyn has been chief executive for seven years, meaning at least another three years would take his tenure to a decade.
Australia does not impose time limits on chief executive tenures but typically their terms are between five and seven years. Chairs and chief executives typically do not leave at similar times to ensure company continuity.
Comyn told the meeting while Australia’s economic growth was below trend and there were still concerns about cost of living, positive signs were emerging.
“Inflation is back within the target band, and what we expect to be a modest rate-cutting cycle is underway,” he said.
Under Comyn, CBA has grown to be one of the most expensive banks in the world.
It has a price-to-earnings ratio of 27.2 times and a forward price-to-book ratio of 3.37 times, well above each of its Australian rivals. It also trades on higher multiples than many international banks such as JPMorgan, Citigroup and HSBC.
Its lofty valuations have prompted concerns among investors, with CBA’s share price falling from a peak this year of A$190.71. The stock on Wednesday was trading up 0.85% at A$165.80. Its 8.2% gain so far this year has lagged the remaining “Big Four” banks in Australia.
CBA in August reported its best ever full-year cash earnings of A$10.25 billion ($6.69 billion) and a record dividend payout for the past financial year.
The bank’s net interest margin, a key measure of profitability, rose 9 basis points from last year to 2.08%.
($1 = 1.5387 Australian dollars)
(Reporting by Scott Murdoch; Editing by Sonali Paul)