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. 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 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 profit 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…
Yes. Ian Saines, the head of Commonwealth Bank's institutional and markets arm, handed in his resignation. He announced the move and will remain with CBA until the end of this year.
Ian Saines was the 51‑year‑old head of CBA's institutional and markets division. He joined the bank from BT in 2004 and led the business as CBA expanded into areas like institutional broking alongside traditional banking services.
According to his statement in the article, Saines said he was moving into a "new phase" in his career and wanted to consider other opportunities in finance or other industries. The article notes he has not yet signed up for a new job.
Mr Saines will stay with Commonwealth Bank until the end of the year. The bank is expected to begin a global search for a replacement immediately.
The institutional and markets division is the third largest at CBA by annual earnings, behind retail and business & private banking. In the latest annual results the division posted a 10% rise in profit to $1.2 billion.
The article reported that CBA shares rose 1% to $73.86 following the news.
CBA's "universal wholesale bank" strategy involves offering both traditional bank services (lending, deposits, payments) and investment‑bank style services such as institutional broking. The bank has pursued this approach while margins in investment banking and broking have been tighter.
Yes. The article states Mr Saines' total remuneration package was $4.5 million in the last financial year. His division was one of the stronger performers, delivering 10% annual profit growth to $1.2 billion in the latest results.
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