CBA puts demerger of wealth and mortgage broking business on hold

Company News

by Rachael Jones

The Commonwealth Bank of Australia (ASX:CBA) has today suspended preparations for the demerger of its wealth management and mortgage broking business.

The move is to prioritise recommendations from the Royal Commission including refunding customers and remediating past issues.

The bank says it remains committed to its strategy to become a simpler, better bank, including ultimately the exit of its wealth management and mortgage broking businesses.

As disclosed in CBA’s half year results, $1,460 million has been allocated to address issues over recent years, including $1,215 million relating to the wealth management businesses.

Shares in Commonwealth Bank of Australia (ASX:CBA) closed -0.11 per cent lower to $73.05.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.