Commonwealth Bank
(ASX:CBA) CEO, Ian Narev, was grilled by a federal parliamentary committee into the banking sector.
Mr Narev admitted that 1 in 10 customers received “inappropriate financial advice” from the bank. Furthermore, 8,000 customers asked the bank to review its financial advice to them. So far, 6,000 reviews have been completed.
CBA has also paid out $11 million for these claims since its initial $52 million payout a few years ago.
When asked about the CommInsure scandal, Mr Narev confirmed that no one was sacked as a result of refusing to pay out legitimate claims for life insurance, and rejecting insurance claims made by terminally ill people.
The next bank CEO to be questioned by the parliamentary committee is Shayne Elliott from ANZ Bank, and that inquiry is happening right now. We’ll provide you with an update on that as soon as possible.
Meanwhile, CBA posted a net profit of $9.25 billion at 30 June 2016.
