Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

CBA (ASX:CBA) reveals $300 million more royal commission remediation

CBA (ASX: CBA) has revealed some more Hayne Royal Commission remediation charges in its upcoming FY20 result.

CBA is Australia’s biggest bank and one of the biggest companies on the ASX.

CBA’s latest remediation provisions

You may remember that a couple of years ago – what seems like a lifetime ago – that the big ASX banks were punished as a result of the Hayne Financial Services Royal Commission.

Banks have been remediating customers hundreds of millions of dollars for fees that shouldn’t have been charged, plus interest.

Today, CBA gave an update about additional customer remediation provisions that will impact the second half of FY20.

CBA said its addressing the full range of remediation issues impacting customers of aligned advice businesses including Count Financial (majority owned by Countplus Ltd (ASX: CUP), Financial Wisdom and Commonwealth Financial Planning.

The major bank said it’s going to recognise another $300 million of pre-tax customer remediation provisions. That brings the total to date to $834 million, which is $698 million in refunds (including $280 million of interest) and $136 million of program costs. The provision assumes an average refund rate of 37% of ongoing service fees collected between FY09 and FY19, excluding interest and 61% including interest.

Summary

Current CBA shareholders are paying for the poor behaviour of CBA over the past decade. I wouldn’t want to buy CBA shares with all of the uncertainty that’s going on at the moment due to COVID-19. For dividends I’d rather buy a quality dividend share.

[ls_content_block id=”14948″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.
Skip to content