The largest of the big four banks, Commonwealth Bank of Australia
(ASX:CBA) has announced its finalised the $4.2 billion sale of global asset management business, Colonial First State Global Asset Management (CFSGAM) to Mitsubishi UFJ Trust and Banking Corporation (MUTB). The sale results in an after-tax gain of about $1.5 billion.
For the group the sale occurred at a profit (premium) of 19.4 times the business unit’s unaudited net profit after tax for FY19 (of $218 million on a pro forma basis).
The transaction also increases the group’s common equity tier 1 (CET1) capital by $3.1 billion.
CBA’s CEO Matt Comyn says the sale is an important milestone in executing its strategy to become a simpler, better bank.
CBA’s FY19 results are due Wednesday 7 August. Citi is expecting the group’s NPAT (continuing operations) to be $8.68 billion, that’s 1 per cent ahead of consensus.
Shares in Commonwealth Bank of Australia
(ASX:CBA) are tradnig 0.3 per cent lower at $81.66. Year-on-year its shares are 11.2 per cent higher.
