One of Australia’s top banks the Commonwealth Bank of Australia
(ASX:CBA) has today agreed to pay a $100,000 penalty after the Australian Securities and Investments Commission issued an infringement notice in relation to the bank’s capital raising in December 2008.
CEO Ralph Norris says the bank is disappointed with ASIC’s decision to issue the infringement notice.
The notice states that the payment is not an admission of liability and cannot be regarded as a finding that the bank contravened the Corporations Act.
Mr Norris says the company was experiencing strong volume and revenue growth at the time which, in the company’s view, significantly offset the forecast increase in loan impairment expense, such that the net impact on the company’s overall profitability was not material.
Mr Norris says the bank has reviewed and will continue to regularly review its continuous disclosure procedures and introduce improvements where appropriate.
The Commonwealth Bank’s 2009 net profit was $4.7 billion.
