Senior CBA executive resigns
Mr Saines on Monday became the second top executive to announce his departure since Ian Narev was appointed chief executive in late 2011, following last year's resignation of retail boss Ross McEwan, who now runs RBS.
After working with the country's biggest lender since 2004 and overseeing a push into areas that traditionally have been the domain of investment banks, the 51-year-old Mr Saines said he was moving into a "new phase" in his career.
He will remain with CBA until the end of this year, and the bank is expected to begin a global search for a replacement immediately.
It is understood he has not yet signed up for a new job, and the decision was driven by a desire to consider other career opportunities in finance or other industries.
"I consider my current position to be one of the best in Australian banking, so a decision to stay would have been easy," Mr Saines said in a statement.
"The strength of the business and the outstanding quality of its talent gives me the opportunity at this time to move on to a new phase in my career."
Mr Saine's division is the third largest in the CBA in terms of annual earnings, after its retail bank and its business and private banking arm. Mr Saines' total remuneration package was $4.5 million last financial year.
Since he joined the bank from BT in 2004, the lender has taken an unusual strategy for a local big bank of seeking to become a "universal wholesale bank" - providing services such as institutional broking, as well as standard banking offerings, such as lending, deposit and payment services.
In the latest annual results the division was one of the strong performers, with 10 per cent annual growth in profits to $1.2 billion.
CBA's push to become a universal wholesale bank has occurred as investment banking and broking is experiencing tighter margins.
The bank, however, has argued that it is common for overseas banks to also offer these services.
CBA shares rose 1 per cent to $73.86.
Frequently Asked Questions about this Article…
Ian Saines is the head of CBA's Institutional and Markets arm. The 51‑year‑old announced his resignation to move into a "new phase" in his career and to consider other opportunities in finance or other industries. He has not yet signed up for a new job and will remain with CBA until the end of this year.
CBA's Institutional and Markets division provides services such as institutional broking alongside standard banking offerings like lending, deposits and payments. It is the bank's third‑largest division by annual earnings (behind retail and business & private banking) and posted strong results, with profits growing about 10% to $1.2 billion in the latest year.
Yes. The bank is expected to begin a global search for a replacement immediately, according to the article.
On the day the resignation was reported, CBA shares rose about 1% to $73.86, reflecting the immediate market reaction noted in the article.
Ian Saines' total remuneration package was reported as $4.5 million in the last financial year.
Since Saines joined from BT in 2004, CBA has pursued a strategy of becoming a "universal wholesale bank," offering both institutional broking and traditional banking services. The bank argues this approach mirrors the offerings of many overseas banks.
Yes. The article notes that Ian Saines became the second top executive to announce his departure since Ian Narev was appointed chief executive in late 2011. It also mentions that retail boss Ross McEwan resigned last year and now runs RBS.
The division delivered about 10% annual profit growth to $1.2 billion in the latest results. At the same time, the article notes investment banking and broking have been experiencing tighter margins, which is part of the broader context for the division's strategy and performance.
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