Commonwealth Bank’s third quarter profit plunged 28 per cent to $1.7 billion in the three months to March, as it was hit by hefty costs from compensating customers.
In a trading update on Monday, CBA said the slump in earning was caused by $714 million in provisions that it took for customer remediation, mainly in its wealth division.
“We are committed to improving outcomes for our customers, addressing past failings and compensating customers quickly,” chief executive Matt Comyn said.
“The additional $714 million in pre-tax customer remediation provisions taken in the quarter demonstrates this commitment, and builds on a range of other initiatives to achieve better customer outcomes, including removing and reducing fees for our customers.”
More to come