Positive CBA update reveal remediation status
The Commonwealth Bank has revealed the state of its client remediation processes at the same time as using a first quarter trading update to reveal a 5% increase in unaudited net profit from continuing operations of approximately $2.3 billion.
The update, released to the Australian Securities Exchange, revealed the extent of the bank’s remediation issues and the progress made to date.
It said that of the $2.2 billion in total program spend and provisions, $1.2 billion related to customer refunds of which approximately $600 million had been paid to banking and wealth management customers to date (excluding aligned advice).
“Salaried adviser ongoing service remediation is now complete and represented a refund rate of 22% excluding interest,” it said.
“Aligned advice remediation work relating to ongoing service fees charged between 2009 and 2018 is continuing. The aligned advice remediation provision recognised in FY19 of $534 million included program costs of $160 million, $251 million in customer refunds and $123 million in interest.”
CBA chief executive said the bank remained well place in a challenging operating environment, characterised by global macro-economic uncertainty and historically low interest rates.
Recommended for you
David Sipina has been sentenced to three years under an intensive correction order for his role in the unlicensed Courtenay House financial services.
As AFSLs endeavour to meet their breach reporting obligations, a legal expert has emphasised why robust documentation will prove fruitful, particularly in the face of potential regulatory investigations.
Betashares has named the top Australian suburbs with the highest spare cash flow, shining a light on where financial advisers could eye out potential clients.
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
