Commonwealth Bank of Australia’s Chief Executive Officer, Matt Comyn announced six appointments and changes to the Executive Leadership Team (ELT) which included simplifying the Bank’s structure. The Bank followed a thorough Australian and international search process and then installed a new team to lead the Bank. These changes will bring some positive results as the new team members bring a strong mix of deep experience in banking, risk management, digital transformation and cultural change leadership. Matt Comyn appointed these new leaders after evaluating a large number of impressive external and internal candidates. CBA is very much confident that this team will bring some improvements as it needs to earn the trust of its customers and the community and which will help in building a better bank for the future.
Further, CBA announced that it is demerging its wealth management and mortgage broking businesses and is undertaking a strategic review of its general insurance business, including a potential sale. This will create a leading independent wealth management business for CBA and it will be able to enhance its focus on its core banking businesses in Australia and New Zealand and create a simpler, better bank.
CFS, the demerged business will include CBA’s Colonial First State, Colonial First State Global Asset Management (CFSGAM), Count Financial, Financial Wisdom and Aussie Home Loans businesses. CFS Group is a Company with a strong earnings base, with pro forma 2017 NPAT of over $500 million and a strong capacity to pay franked dividends and with this demerger, both the Companies will unlock value for shareholders. But the demerger is dependent on the approval from CBA Board and shareholders along with a pass from regulatory entities. It is expected that this demerger transaction will be completed in 2019.
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