Commonwealth Bank (CBA) has notified investors of one-off operating expenses and income items that will affect its upcoming half-yearly results, scheduled for release next week. The announcement precedes the full unveiling of the bank’s financial performance for the six months ending December 31. 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 across Asia-Pacific, the US and the UK.
Notably, CBA has recognised a $68 million pre-tax provision related to additional payments made to vulnerable customers, as requested by corporate regulators. The bank initially resisted calls from the Australian Securities and Investments Commission (ASIC) to refund fees charged to these customers. However, CBA reversed its position in December, agreeing to issue partial refunds.
In addition to the expenses, CBA also indicated a $53 million pre-tax impact on its ‘other’ operating income. This figure includes a milestone payment related to the previously announced sale of Commonwealth Insurance Limited. It also factors in a fair value gain on the bank’s investment in Gemini.
CBA is set to announce its half-year results on February 11, where further details regarding these one-off items and the overall financial performance will be disclosed.
