The charges include a higher-than-expected compliance cost of A$100 million related to a quasi-judicial inquiry into Australia's financial sector, the bank said in a statement. The remaining costs are related to a remediation program adopted for its demerged wealth management arm, it added. Earlier this year, CBA said it would spin off its wealth management and mortgage broking arms into a separately listed new company called CFS Group, inclusive of its Colonial First State Global Asset Management (CFSGAM) business.
Australia's largest pension fund, AustralianSuper, said it will vote against the executive pay of three of the country's biggest banks, in a show of the investment community's souring attitude towards the sector following a year-long misconduct probe. Westpac Banking Corp (WBC.AX), the country's second-largest lender, would be first to receive AustralianSuper's protest vote at its annual shareholder meeting on Wednesday. The pension fund said it would also vote against the executive pay plans of Australia and New Zealand Banking Group Ltd (ANZ.AX) and National Australia Bank Ltd (NAB.AX) in the coming weeks.
Moody's Investors Service says that housing loan delinquencies for Australia's four major banks continued to grow in the 12 months to 30 September 2018, although arrears remain at low levels. "IMPORTANT NOTICE: MOODY'S RATINGS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS. "We expect that delinquencies on residential mortgages will rise moderately in 2019 from the current low base," says Daniel Yu, a Moody's Vice President and Senior Analyst.
Gareth Aird of the Commonwealth Bank says an acceleration in wages needs to persist before a rate rise comes onto the agenda of the Reserve Bank of Australia.
A year-long inquiry that exposed widespread wrongdoing in Australia's financial industry ended on Friday ahead of a final report due by Feb. 1 that could reshape the sector. Dismissed initially as a "populist whinge" by the ruling conservative party, the quasi-judicial Royal Commission has revealed branch-to-boardroom misconduct which has smashed bank share prices as investors brace for tougher regulation. In its final two weeks it grilled the CEOs of Australia's biggest banks and wealth managers, exploring questions around remuneration, governance, culture, the conflicting interests of shareholders and customers, and the regulatory structure of the industry.
An inquiry that has exposed rampant greed and wrongdoing in Australia's major banks and wealth managers wraps up this week ahead of a final report which could trigger sweeping reform of the financial sector of the world's 12-largest economy. Dismissed initially as a "populist whinge" by the ruling conservative party, the quasi-judicial inquiry known as a Royal Commission has revealed branch-to-boardroom misconduct which will almost certainly trigger tougher regulation.
Commonwealth Bank of Australia's (CBA.AX) chairwoman on Wednesday defended her testimony to a financial sector inquiry that she had raised governance concerns with senior management, even though lawyers said there were no records of her doing so. Catherine Livingstone was also grilled over why the head of the scandal-hit retail division was later appointed CEO, and why executive bonuses were only affected after events were reported in the media rather than when the board became aware of them. In her second day in the witness stand at the quasi-judicial inquiry, Livingstone said she had confronted management at a board meeting in late 2016 after regulators warned the bank about breaches of anti-money laundering and terror-financing laws (AML/CTF).
SYDNEY/TOKYO (Reuters) - Commonwealth Bank of Australia (CBA.AX) will sell its asset management arm to Mitsubishi UFJ Financial Group for $2.9 billion in a surprise sale, the latest business to be sold by an Australian financial giant amid unprecedented regulatory scrutiny. Australia's biggest lender said it was cancelling plans to list Colonial First State Global Asset Management in favour of a sale to create "a simpler, better bank". For MUFG, Japan's biggest financial group, the acquisition is the first in a grand plan to expand aggressively into overseas asset management, for which it has prepped a 1 trillion yen ($8.8 billion) warchest.
(Reuters) - Commonwealth Bank of Australia (CBA.AX) confirmed on Wednesday that it is in advanced talks with a party over the sale of its investment management business. Australia's largest lender had ...
There are "clear signs" of dollar-yuan moving and sustaining at levels beyond 7 in the next 12 months, says Elias Haddad of Commonwealth Bank.
FWD Group, led by Hong Kong billionaire Richard Li, will buy control of an Indonesian life insurance venture from Commonwealth Bank of Australia for A$426 million ($300 million) as it seeks to expand across Asia. The transaction is the latest of several in Southeast Asia's insurance sector with buyers lured by lower insurance penetration levels and robust growth rates for insurance premiums.
Oct 23 (Reuters) - Commonwealth Bank of Australia: * ANNOUNCED SALE OF ITS 80% INTEREST IN ITS INDONESIAN LIFE INSURANCE BUSINESS, PT COMMONWEALTH LIFE (PTCL), TO FWD GROUP * PTCL CUSTOMERS WILL RETAIN ...
Gareth Aird of Commonwealth Bank says the fundamentals of the labor market in Australia are "quite sound."
SYDNEY/HONG KONG (Reuters) - Investment bankers are bracing for the start of a landmark legal case about alleged cartel activity in Australia's financial sector, nervous the proceedings could lead to increased scrutiny and tougher measures from regulators worldwide. Australian authorities filed criminal charges in June against the local units of Citigroup (C.N), Deutsche Bank (DBKGn.DE), Australia and New Zealand Banking Group (ANZ.AX) and six bankers over a $2.3 billion stock sale. Most past investigations into cartels by the Australian Competition and Consumer Commission (ACCC) have looked at trade in goods.
Full Year 2018 Commonwealth Bank of Australia Earnings Presentation
The ACCC said the inquiry would examine the ways exchange rates are presented to customers as well as the mark-up from wholesale currency rates that buyers are charged when changing currencies. “We will be examining why major companies in Australia, including the Big Four banks, seem to be able to consistently charge high prices,” ACCC Chair Rod Sims said.