The Commonwealth Bank has opted for an internal appointment as its new chief executive to deal with the mounting reputational damage which helped spark the banking royal commission.

Key points: New CEO had responsibility for ATM rollout at the heart of the money-laundering scandal

New CEO had responsibility for ATM rollout at the heart of the money-laundering scandal Mr Comyn is a 20-year veteran at the bank

Mr Comyn is a 20-year veteran at the bank His base pay is $2.2m, but with potential to earn up to $8.4m through bonuses

CBA veteran, and the current head of its scandal-hit retailing banking arm, Matt Comyn will replace chief executive Ian Narev on April 9.

Mr Narev announced his planned departure from the bank in August, following a series of scandals relating to its insurance arm, dubious financial advice and charges relating to the systematic break down of its anti-money laundering and counter-terrorism funding (AMLCTF) monitoring and reporting.

While Mr Comyn was considered a frontrunner, his appointment will nonetheless raise some eyebrows as his retail banking responsibilities included the rollout of the so-called intelligent deposit machines central to the money laundering charges.

Mr Comyn's annual salary package includes a base pay of $2.2 million a year, with short-term incentives of up to another $2.2 million and long-term incentives of $4 million to be reviewed at the 2018 annual general meeting.

The bank's board undertook a global search to find a replacement for Mr Narev — whose six-year term was tarnished by the mounting reputational damage — only to find him in an adjacent office.

Mandate for change

CBA chair Catherine Livingstone said after a rigorous interview process, Mr Comyn had the best mix of attributes and values need to lead the bank.

"His mandate is to continue to make the necessary changes to ensure CBA remains a leading bank with an unwavering focus on its customers and delivering outcomes for our shareholders, while achieving the highest operational standards unequivocally fulfilling our regulatory responsibilities," Ms Livingstone said in a statement released to the ASX.

"Matt's appointment will enable a smooth transition to new leadership, as CBA responds to the current regulatory processes and legal proceedings, accelerating the related changes and improvements already underway."

The CBA, along with the other big four retail banks, is expected to lodge a submission to the royal commission this week.

Those submissions are expected to detail a range of misconduct identified by the banks' internal reviews ahead of the public hearings which start early next month.

Ms Livingstone said Mr Comyn was not tainted by his leadership of the retail bank during the ATM rollout that lead to the money laundering scandal, or issues related to "upselling" of financial products to customers.

She described the problems as a "collective responsibility" taken by the bank's management team, reflected in the pay cuts meted out to executive last year.

Mr Narev saw his pay cut by $4.8 million to $5.5 million in the wake of the emerging scandal.

"We are focused on areas that have not met community standards and our standards," Ms Livingstone said.

"There is no question there have been issues at the bank that need addressing."

Mr Comyn's 20-year career at the CBA includes experience across all the key divisions including business, institutional, retail and wealth management.

Questions of accountability

Addressing investors and media, Mr Comyn said the bank was finalising its submission to the royal commission and promised to be "absolutely transparent" in the legal and regulatory inquiries the bank currently faces.

"Our focus is on transparency and getting on with fixing what we know needs to be fixed," he said.

"The past six months in particular have been very challenging and I am committed to working with the board, the executive team [and staff] … to rebuild trust in the Commonwealth Bank together."

While Mr Comyn is well regarded in the investor community, questions have been raised over whether an internal appointment is "the best look" for a a bank grappling with a legacy of reputational issues and misconduct.

Velocity Trading's Brett Le Mesurier said there were pros and cons with the appointment.

"He is tainted to some extent by the money-laundering scandal and that's a disadvantage," Mr Le Mesurier said.

"The advantage is he — as have his predecessors — had real success in the best part of the bank [retail], the part that is the best from an investor perspective.

"I suspect he [Mr Comyn] had very little to do with the rollout of the ATMs, the question is should he have been more involved?"

Mr Le Mesurier said while back-office IT let down the bank, management was not up to the task of managing the problem.

"He should have some accountability for it, but there seems to be a lack of accountability since he got the job," Mr Le Mesurier noted.

The CBA is expected to unveil a record half-year profit of around $5.2 billion next week, putting it well on pace for a full year profit in excess of $10 billion.

The result announcement will be the last under Mr Narev's leadership.