CBA sells 55% stake in Colonial First State

Thursday 14 May 2020 13:02 CET | News

Commonwealth Bank (CBA) has announced selling a majority stake in its Colonial First State wealth management unit. 

It also announced setting aside USD 1.5 billion for potential defaults on account of COVID-19-related shutdowns. The decision comes after the bank reported that cash profit for the third quarter fell 23% to USD 1.3 billion, down from USD 1.7 billion a year ago.

It also took a USD 135 million charge relating to customer remediation in the wake of the banking royal commission, with operating expenses were up 5% during the March quarter.

CBA approved repayment deferrals worth USD 15.2 billion on 71.000 business loans, on 144.000 home loans worth USD 50 billion, as well as 25.000 personal loans.

CBA separately announced it would sell a 55% stake in Colonial First State to global investment company KKR for USD 1.7 billion.

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Keywords: CBA, coronavirus, COVID-19, Commonwealth Bank, Colonial First State, banks, loans, banking, KKR
Categories: Banking & Fintech
Countries: Australia
This article is part of category

Banking & Fintech