Following the announcement the major bank will demerge its wealth management and mortgage broking businesses, CBA has announced who will be leading the demerged businesses.
Commonwealth Bank of Australia (CBA) announced today former SocietyOne CEO Jason Yetton will be appointed chief executive officer and Andrew Morgan will be appointed chief financial officer of the new entity made up of CBA’s wealth management and mortgage broking businesses, which is has termed 'NewCo'.
These appointments follow CBA’s announcement in June 2018 of the demerger of NewCo, which includes Colonial First State, Count Financial, Financial Wisdom, Aussie Home Loans and CBA’s minority shareholdings in ASX-listed companies CountPlus and Mortgage Choice.
Colonial First State Global Asset Management will no longer form part of NewCo, following another announcement today of an agreement to sell to Mitsubishi UFJ Trust and Banking Corporation.
Yetton will join after two years as CEO and managing director of SocietyOne. Before that he spent more than 20 years at Westpac and BT Financial Group, including as group executive Westpac retail and business banking.
Morgan is currently chief financial officer, wealth management at CBA. Before this he was CFO for the business and private bank and Bankwest at CBA. He has more than 25 years’ experience in the financial services and property sectors, including at Lend Lease Corporation, National Australia Bank, Radian and Perpetual.
CBA's CEO Matt Comyn said, “The appointments bring an important mix of external and internal experience, as well as a deep understanding of wealth management and financial services, to lead the new entity.
“Jason is an accomplished leader, with deep wealth management and broad financial services experience. He is well positioned to lead NewCo and will be strongly supported by Andrew.
“These appointments, effective 1 December 2018, will help drive NewCo’s strategy and future potential.”
With today’s announcement regarding the agreement to sell CFSGAM, the candidate non-executive directors that had been identified for NewCo will no longer continue in their positions.
“I thank John Mulcahy and the other candidate directors for their contributions during this time. Under John’s leadership, they have played an important role in achieving the successful sale outcome for CFSGAM. A new board for NewCo will be established in advance of the proposed demerger,” Comyn said.
The demerger of NewCo is subject to shareholder and regulatory approvals under a scheme of arrangement. If approved, the demerger is now expected to complete in late calendar year 2019.
Yetton’s appointment is also subject to regulatory approvals, including any applicable APRA registration requirements.