Ian Narev’s impending departure was announced in a statement to the ASX in which the bank’s chair, Catherine Livingstone, explained that the exact timing of the leadership changeover would be “dependent on the outcome of an ongoing comprehensive internal and external search process”.

“Succession planning is an ongoing process at all levels of the bank,” Ms Livingstone said.

“In discussions with Ian we have also agreed it is important for the business that we deal with the speculation and questions about his tenure. Today’s statement provides clarity and will ensure he can continue to focus, as CEO, on successfully managing the business.”

Last week the bank’s board announced it had reduced executive bonuses to zero and reduced the fees given to non-executive directors by 20 per cent in response to allegations made by AUSTRAC that the Commonwealth Bank had breached numerous anti-money laundering and counter-terrorism financing regulations.