On 8 March 2019, Commonwealth Bank of Australia’s (ASX: CBA) CEO Mr. Matt Comyn appeared before the House of Representatives Standing Committee on Economics to provide an update on actions to address the recommendations of the Royal Commission.
Mr. Comyn noted that the bank is making improvement in addressing customer complaints to make sure that problems of its customers are resolved consistently, quickly and fairly. He further informed that the bank is changing its approach in order to identify systemic issues earlier and to address the root cause.
As a precautionary measure, the bank is strengthening its internal governance, culture and accountability, to make sure that it does not repeat the failures of the past. While informing about the Banks’ Remedial Action Plan, Mr. Comyn informed that the bank is on track with progress to date, however, there is still some significant work left which needs to be done to deliver the Remedial Action Plan.
The bank is making sure that its business is squarely focused on delivering for its customers. CBA has pledged to grow its lending to small business, with faster and better service for approving loans. The bank is supporting farmers which are facing difficulties by not charging default interest on agricultural term loans in the event of a drought or other natural disaster.
In order to facilitate the customer experience, the bank is adding features as per the requirement of the customers. To help its customers in paying their outstanding debt more quickly and at a lower rate, CBA has added ApplePay service which helps customers in paying instalments on their credit cards.
While addressing the recommendations provided by the Royal Commission in its Final report, Mr. Comyn told that many of the recommendations require direct changes to its business and they are currently underway. He further informed that some of the recommendations will require action by the Government, regulators and Industry bodies before the bank can implement them.
At the Standing Committee, when Mr. Comyn was asked about CBA’s inability to stop charging service fees to financial advice customers as ordered by the ASIC, Mr. Comyn told that there have been some delays, but CBA has already turned off 97% of fees and he assured that it will be 100% in the next 10 days.
Now, let’s have a glance at the Bank’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $73.320, down by 1.821% during the day’s trade with a market capitalization of ~$132.2 billion as on 8 March 2019 (AEST 2:41 PM). The counter opened the day at $74.00 and reached the day’s high of $74.140 and touched a day’s low of $73.100 with a daily volume of more than 2,001,910. The stock has provided a year till date return of 5.23% & also posted returns of 5.91%, 6.12% & 0.84% over the past six months, three & one-months period respectively. It had a 52-week high price of $77.660 and touched 52 weeks low of $65.230, with an average volume of ~ 3,270,991.
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