CBA shareholders footing most of bank's $1.4b customer compensation bill

  • 📰 abcnews
  • ⏱ Reading Time:
  • 39 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 83%

Loans Loans Headlines News

Loans Loans Latest News,Loans Loans Headlines

The Commonwealth Bank confirms shareholders will bear the bulk of its $1.4 billion bill for customer compensation, while Westpac's boss struggles to answer some questions about the bank's home lending.

Commonwealth Bank boss Matt Comyn has confirmed shareholders will bear the bulk of the $1.4 billion bill for customer remediation that the bank has racked up over the past five years.Between them, CBA and Westpac are facing about 1,800 outstanding complaints at the financial complaints authority

"So if there's an increase in it, it will be borne by shareholders, in the amount of money that's paid out in compensation?" Mr Wilson asked.Testifying in the afternoon, Westpac chief executive Brian Hartzer and chief financial officer Peter King said the bank had set aside about $380 million for customer compensation and related costs in financial year 2018 and $169 million the year before.

Those extra complaints-handling officers may be busy — even though CBA said it had reduced an 800-case backlog with the Australian Financial Complaints Authority down to 160, an influx of new complaints since the banking royal commission started meant that AFCA was handling nearly 1,000 outstanding cases against CBA at the start of this month.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Wow! I am surprised! Any one else surprised like me? Who thinks that customers won't foot 'most of bank's $1.4b customer compensation bill'?

I laugh all the way to my share register which has no bank shares! :)

And if you believe that you probably believe pigs fly. Customers will pay it back in fees and interest rates and some other bank scam not yet implemented.

Oh durr,

Break up the Big 4 Banks - Glass-Stegall.

Perhaps they should consider themselves lucky..

Staff & Managers. responsible for fraud & fudgery. CEO & Board should have all assets sold up as first stage. then hit the owners. who voted for these bank robbers.

Penut, penalty should have been a jail terms

Well so they faaarking should! They own the business don't they?

as it should be. they got the profits when the CBA were being dodgy 🤷‍♂️

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in LOANS

Loans Loans Latest News, Loans Loans Headlines