CBA review compensation doubles to $6.2m

CBA has now paid more than $6.2 million to 423 customers under the bank's Open Advice Review – double the amount announced in the June report.

In an update to ifa, the bank said it has offered $8.7 million to about 650 cases, up from $4.8 million offered as at 30 April 2016. Of that total, $6.2 million has been paid to 423 customers, up from $3.1 million.

CBA has now completed assessments for 5,000 customer cases, with over 3,000 remaining. The program is currently on track to issue all assessments by the end of 2016, the bank said.

CBA's compensation scheme was set up in July 2014 in response to potential victims who lost money via its financial planning arm. In June, ifa reported the bank has introduced a new process to its compensation scheme that would see certain cases being re-assessed. 

Meanwhile, CBA reported yesterday a full-year cash net profit after tax (NPAT) of $9.45 billion, up 3 per cent on the previous year.

CBA’s statutory NPAT also saw an increase, up 2 per cent to $9.23 billion, while fully franked final dividends sat at $2.22 per share, bringing the full-year dividend to $4.20 – holding flat on last year.

In addition, the bank's Common Equity Tier 1 capital ratio grew by 150 basis points on an APRA basis, bringing it to 10.6 per cent.

Commonwealth Bank chief executive Ian Narev said this figure places CBA “above any ‘unquestionably strong’ benchmark” for the capital ratio, adding that the bank is “confident it can maintain its position of strength across all required metrics”.

“Our capacity to support our customers is directly related to the strength of our balance sheet," Mr Narev said.

"As a result of the capital raising and strong organic growth throughout the year, we have substantially boosted our capital position."

 

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