Embattled Commonwealth Bank of Australia said annual profit rose, and that it is in talks to sell a life insurance arm. The bank also unveiled a new payout scheme.
Sydney-based CBA has been in the headlines for a major money-laundering scandal.
CBA has argued that the laundering violations arose after technology linked to automatic deposit machines amplified one error into thousands of lapses.
Chief Executive Ian Narev is on the ropes over the scandal, and was told yesterday that he and top management colleagues will not receive a bonus.
Healthy Profits
On Wednesday, the bank reported a 5 percent rise in net profit on the year to A$9.88 billion – a better than expected result. Profits were driven by higher home and business lending as well as deposits.
CBA also said it is in talks to sell its life insurance arm, among other options.
On the scandal response, CBA said at this time it is not possible to reliably estimate the possible financial effect» as it reviews 580 pages of allegations from Australian overseer AUSTRAC.
Payout Discount
The bank also said it is setting up a payout scheme, under which investors get a 1.5 percent discount on shares issued.
Separately, CBA's board issued a statement on the bank's response to the money-laundering scandal, which had included hiring 50 compliance experts and tasking four board directors as a response team.
Under chair Catherine Livingstone (pictured above), CBA said the board «has no reason to believe that the allegations arose from deliberate or unethical behaviour, or any commercial motive.»
