The Commonwealth Bank has provided an update on its business plans and has said it is has paused the exit of its wealth management and mortgage broking businesses.
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 advisers.
Eliot Hastie is a journalist at Momentum Media, writing primarily for its wealth and financial services platforms.
Eliot joined the team in 2018 having previously written on Real Estate Business with Momentum Media as well.
Eliot graduated from the University of Westminster, UK with a Bachelor of Arts (Journalism).
You can email him on: [email protected]