Tag: CBA

CBA shareholders will get an unchanged full-year dividend of $4.31 a share despite earnings falling for the year to June 30 under the twin weight of the fallout from the royal commission and weaker lending, especially in housing.

Commonwealth Bank shares have hit a new 21-month high of $83 after the bank revealed another deal with another regulator to resolve slack internal processes – this time customer privacy.

Commonwealth Bank’s third-quarter profit slumped 28% to $1.7 billion for the three months to March, as it was hit by hefty costs from compensating customers.

While the CBA has reiterated that it is still committed to “ultimately” exiting its wealth management and mortgage broking businesses, that exit now appears quite a while off, years in fact.

The Commonwealth Bank will pay an unchanged interim dividend of $2 a share after reporting a small improvement in net earnings for the half year to the end of December.

More red ink for the banks from the royal commission disclosures and associated scandals with the CBA revealing a new $350 million impact to its December 31 half-year earnings from a series of new costs.

Investors have taken CBA’s first-half trading update in their stride with nothing in the limited announcement to cause alarm.

The Commonwealth Bank has called off a stock market float of its funds management arm and will sell it to a big Japanese insurance group for $4.13 billion.

The Commonwealth Bank is selling its 80% stake in an Indonesian life insurance business for $426 million and will use the profit from the sale to boost capital reserves ahead of the start of tougher new rules from 2020.

CBA has promised, “further action to improve its wealth businesses” including the rebating of grandfathered commissions which will cost the bank around $20 million.

So much for any lasting damage to the Commonwealth Bank from the Hayne Royal Commission or the Austrac debacle.

So much for all the hype about how the banking royal commission and the Austrac money laundering claims would hurt the Commonwealth Bank and threaten shareholders returns.

The new management and board at the Commonwealth Bank is blowing up the corporate structure that David Murray built as CEO decades ago and is now defending as the new chair of the struggling AMP. In an announcement to the ASX yesterday the CBA said it was stripping itself back to being a bank.

The Commonwealth Bank now has the dubious distinction of having the two largest penalties ever imposed on an Australian company after it did a deal to end the embarrassing Austrac money laundering case by agreeing to a $700 million fine (and legal costs of $2.5 million) and making a new set of admissions over the breaches.

The Commonwealth Bank has raised more cash to bolster its capital base after agreeing to sell its stake in Chinese life insurer BoComm Life for $668 million.

The Commonwealth Bank shares were hit hard yesterday, falling to a near five year low after the bank produced what investors took to be a weak third quarter trading update, and yet another fine to settle a legal action from regulators.

Investors ignored the humiliating report from the key banking regulator about the recent performance of the Commonwealth Bank and sent the shares up yesterday – they rose 1.9% to $73.17 despite the report saying that “CBA turned a tin ear to external voices and community expectations about fair treatment”, and had raised “a number of prudential concerns”.