Commonwealth Bank (CBA) has allocated $130 million in provisions during the second half of the year. This move comes as the bank prepares to transition Bankwest into a fully digital brand and integrate its business banking operations into the wider CBA group. Commonwealth Bank is one of Australia’s largest financial institutions, providing a range of banking and financial services to individuals and businesses. The bank also operates in New Zealand through its subsidiary, ASB Bank.
The restructure of Bankwest accounted for $45 million of the total charges. The remaining provisions are related to customer remediation costs. Of these costs, $52 million are attributed to remediation in Australia, while $33 million relate to remediation through ASB in New Zealand.
CBA has confirmed that these provisions will be excluded from the bank’s underlying expense line when it releases its full-year results on August 13. This adjustment aims to provide a clearer picture of the bank’s ongoing operational performance, separating it from the one-off costs associated with the Bankwest transition and customer remediation efforts.
