CBA Pleads Guilty To Insurance ‘Hawking’ Charge
The Commonwealth Bank faces potential fines up to about $1.85 million after pleading guilty to selling life insurance to customers through unsolicited phone calls.
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News
CBA Holds Ground In Q1 Despite “Headwinds”
CBA has issued a cunningly structured Q1 trading update that flagged further "headwinds" for its net interest margin but importantly the update contained no new charges for customer remediation.
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Bank Earnings Review: Is The Worst Behind Us?
KPMG’s Major Australian Banks Year-End Analysis Report 2018-19 finds that the four majors reported a combined cash profit after tax from continuing operations of $26.9 billion, down 7.8% on FY2018.
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“Premium”: RBA Warns On Bank Earnings
In its second and final stability review for 2019, the RBA has warned on a combination of factors that will depress bank earnings, starting with the continuing rise in customer remediation over abuses exposed by the Hayne Royal Commission.
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CBA Concludes Count Financial Deal, Suncorp Sells Smash Repairs Arm
Two deals from two financial groups yesterday have again confirmed the push to sell non-relevant assets continues in the wake of the Hayne royal commission.
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Analyst Views
CBA – Morgans rates the stock as Hold
FY19 net profit was -2% below Morgans' forecasts. The broker considers the result bodes well for the outlook for major bank earnings in terms of home lending and residential mortgage asset quality.
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CBA – Morgans rates the stock as Hold
Morgans believes stimulus initiatives announced by APRA (Australian Prudential Regulatory Authority), for an additional capital add-on of $500m for operational risk, to be applied until the banks have completed their planned remediation, will de-risk the earnings outlook for the sector.
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CBA – Citi rates the stock as Neutral
Citi observes Commonwealth Bank has utilised the March quarter to accelerate the recognition of customer remediation across wealth management advice & products and has now dealt with key issues, so a top up in future looks less likely.
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CBA – Macquarie rates the stock as Downgrade to Underperform from Neutral
Following a broader market re-rating, Macquarie finds the bank sector looking increasingly attractive on a relative basis. The sector is offering healthy dividend yields and supportive relative valuations.
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CBA – Morgan Stanley rates the stock as Underweight
First quarter cash profit was in line with Morgan Stanley's estimates. The margin was lower than expected while housing loans were slightly ahead of forecasts. The broker notes credit quality remains sound.
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