The Commonwealth Bank has provided an update on its business plans and has said it is committed to the exit of its wealth management and mortgage broking businesses; via InvestorDaily.
The update follows last week’s release of the bank’s full response to implementing the recommendations from the Royal Commission.
While CBA remains committed to exiting the wealth management and mortgage broking business it has suspended these plans in order to focus on the priorities of refunding customers and remediating past issues.
Over recent years, the bank has spent $1.46 billion on or provisioned to address refunding customers including $1.21 billion relating to the wealth management business.
The $1.46 billion comprises of over $600 million already paid to customers or provisioned to address issues relating to advice quality, fees for no service and banking fees and interest.
The program costs and processes of this work has cost the bank $650 million and another $200 million has been provisioned for wealth management related remediation issues and program costs, including ongoing service fees charged by aligned advisors.
Editors note: Post updated from millions to billions (source was incorrect).
