The Commonwealth Bank’s head of structured finance, Leanne Leong, has left the bank following an internal review of the highly profitable operation, according to The Australian.

The division, which contributes more than $100 million a year in income, played a key role in setting up and managing the CBA’s controversial $5 billion operation in low-tax Malta.

Ahead of the bank’s trading update on Wednesday, sources said the Maltese operation, along with structured finance, would be wound down.

CBA declined to comment on either Ms Leong’s departure, the structured finance review, that took place late last year or the future of the Malta operation, which has been defended by chief executive Ralph Norris.

Mr Norris has said the group needed a European licensed bank to do business with members of the European Union. But industry sources say the structure has attracted the attention of the Australian Taxation Office, despite the bank’s claim that it meets all its tax obligations.

A wind-down of structured finance would mirror action taken by other major banks, due to the reputational damage caused by aggressive tax systems.

One example was last December’s $1.76 billion industry settlement with the New Zealand Commissioner of Inland Revenue over transactions designed to exploit “tax asymmetry”.

ANZ chief executive Mike Smith said after the settlement that the bank was no longer in tax-driven structured finance. “We don’t do that business any more; we just killed it all because it’s high reputation-risk stuff,” he said.

CBA’s trading update for the March quarter, due on Wednesday, follows last week’s half-year results from ANZ, Westpac and National Australia Bank.

Investors marked the sector down due to weak underlying earnings growth, with concern about future profit margins.