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.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
