CBA puts wealth spin-off on the back burner
The Commonwealth Bank will delay the planned spin off of its wealth and mortgage brokering business because of its priorities to implement a number of recommendations from the Royal Commission.
In a statement to the Australian Securities Exchange, CBA said the bank is prioritising the implementation of these recommendations, refunding customers and remediating past issues.
“Accordingly, CBA has suspended preparations for the demerger in order to support the focus on these priorities.
“CBA remains committed to its strategy to become a simpler, better bank, including ultimately the exit of its wealth management and mortgage broking businesses.”
In June last year, announced the spin-off, which would be named CFS Group.
The new offshoot included Colonial First State, its Global Asset Management division, Count Financial, Financial Wisdom, and Aussie Home Loans –
In its half-year results the bank said that $1,460 billion ha s already been spend to address issues in its wealth management businesses