⁍ CBA exited its aligned financial advice business last year after a government-backed inquiry into the financial sector in 2018 exposed widespread systematic misconduct.
⁍ The coronavirus crisis has added further pressure on Australian banks, which now see margins threatened due to record-low interest rates, rising unemployment and more bad loans.
⁍ The Sydney-based lender had booked A$1.5 billion in provisions in the third quarter to cover future pandemic-related loan losses.
– Australia’s Commonwealth Bank of Australia is set to report its full-year results on Aug. 12, and the country’s biggest lender has some tough news for investors: It will set aside another $215 million to compensate customers affected by misconduct in its financial advice business, reports Reuters. Last year, CBA exited that business as part of a government-backed inquiry that uncovered widespread misconduct in the country’s banking industry. The money will mostly go to customers who were affected by the misconduct.
Source: https://www.reuters.com/article/cba-outlook/update-1-australian-bank-cba-sets-aside-216-mln-more-to-remediate-customers-idUSL3N2F05R3