Pic: ABC Marco Catalano
The head of the Commonwealth Bank has defended the institution’s multi-billion-dollar profits and suggested there will be more compensation for customers who have been mistreated.
Key points:
CEO Ian Narev says high profits allow Australia to “keep confidence of global funders”
Federal parliamentary inquiry is investigating cases of bad financial advice and the life insurance scandal
Mr Narev says CommInsure has changed its definition of heart attacks since scandal
Ian Narev is the first banking executive to face the federal parliamentary inquiry into the sector.
The Commonwealth Bank CEO said the “vast majority” of staff were working to do the best for customers but he also acknowledged they needed to “do better”.
Mr Narev began the hearing by offering a defence of the general profit levels enjoyed by the bank.
“It is correct that our returns on equity are higher than many banks in other developed markets,” he told the committee.
“But in most of those markets, banks have failed, nearly failed or struggled severely.
“Our profits are at a level that enable us to keep the confidence of global funders who play a critical role in our ability to consistently extend credit.”
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ABC
