CBA sniffs around Suncorp
The Commonwealth Bank of Australia (CBA) is currently the only institution publicly sharing its interest in the wealth management arm of Suncorp.
CBA has admitted that it has conducted “high level, exploratory discussions” with Suncorp, but it seems that any more acquisitions could put pressure on CBA’s credit position.
Standard & Poor’s credit analyst Mark Legge said that as a result of the funding and integration requirements resulting from CBA’s purchase of BankWest, there is now “reduced tolerance” on CBA’s ‘AA’ rating level “for any risks that may emerge due to additional acquisitions or significant weakening in investor sentiment in the short term”.
In regards to the BankWest acquisition, Legge said that while CBA’s funding diversity and flexibility should mean the additional funding requirements of the purchase should be “manageable”, additional funding remains a risk in the current environment.
AUTHOR
By Beaman
Recommended for you
The popularity of ETFs, which are approaching $200 billion in Australia, is a potential threat to the advice landscape if consumers opt to invest directly, according to this senior partner.
A former AMP financial adviser has urged advisers in the BOLR class action against AMP to object to the “unfair and unreasonable” $100 million settlement sum as the objection deadline approaches on 22 May.
Two Victoria-based financial advice practices have merged and rebranded as Forbes Fava Saville Financial Planning, as the firm realises the benefits of added scale.
The Financial Services and Credit Panel has made its latest ruling over a case involving an incorrect Statement of Advice.
