CBA’s remediation costs weigh on profit

Company News

by Anna Napoli

The Commonwealth Bank's (ASX:CBA) third quarter net profit has fallen by 28 per cent when compared with the two previous periods to $1.7 billion.

Australia's largest bank says third quarter headline profit was impacted by $714 million in pre-tax customer remediation costs.

Excluding one-off items profit was done 9 per cent.

Operating income was 4 per cent lower, reflecting a combination of seasonal impacts, temporary headwinds and rebased fee income driven by the Bank’s Better Customer Outcomes program.

CBA CEO Matt Comyn says the bank is committed to improving outcomes for our customers, addressing past failings and compensating customers quickly.

Shares in CBA (ASX:CBA) are trading 2.98 per cent lower at $73.16.

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.