CBA exits aligned advice amid profit decline

7 August 2019
| By Mike |
image
image
expand image

The Commonwealth Bank (CBA) has reaffirmed the continuing divestment of aligned advice business including the closure of Financial Wisdom by June, next year, at the same time as announcing an eight per cent decline in full-year net profit after tax to $8,571 million.

Commonwealth Bank chief executive, Matt Comyn, reinforced the big banking groups continuing divestments which have included the sale of Count Financial and Colonial First State Global Asset Management and then referenced its commitment to exit from aligned advice.

Comyn also emphasised that the Commonwealth Bank’s divestment of CommInsure to AIA Australia, which began in 2017, was still in progress and that the two groups remained “fully committed” to completing the transaction.

The CBA announcement to the Australian Securities Exchange (ASX) said the transaction was well-progressed but that the two companies were also exploring an alternative path to complete the CommInsure life transaction prior to the transfer of the Group’s stake in BoComm Life.

Comyn said he believed the banking group had made progress in its strategy to become a simpler, better bank but acknowledged that the headline results had been impacted by customer remediation costs, revenue foregone for the benefit of customers and elevated risk and compliance expenses.

“The progress we are making on divestments further strengthens our capital position,” he said.

The company declared a flat full year dividend of $4.31 per share.

Read more about:

AUTHOR

 

Recommended for you

 

MARKET INSIGHTS

sub-bg sidebar subscription

Never miss the latest news and developments in wealth management industry

Squeaky'21

My view is that after 2026 there will be quite a bit less than 10,000 'advisers' (investment advisers) and less than 100...

6 days 16 hours ago
Jason Warlond

Dugald makes a great point that not everyone's definition of green is the same and gives a good example. Funds have bee...

6 days 17 hours ago
Jasmin Jakupovic

How did they get the AFSL in the first place? Given the green light by ASIC. This is terrible example of ASIC's incompet...

1 week ago

AustralianSuper and Australian Retirement Trust have posted the financial results for the 2022–23 financial year for their combined 5.3 million members....

9 months 1 week ago

A $34 billion fund has come out on top with a 13.3 per cent return in the last 12 months, beating out mega funds like Australian Retirement Trust and Aware Super. ...

9 months ago

The verdict in the class action case against AMP Financial Planning has been delivered in the Federal Court by Justice Moshinsky....

9 months 1 week ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND