Commonwealth Bank has foreshadowed A$212 million of pre-tax provisions that will be included in next week’s FY2023 full year result.
The bank said it will recognise:
- “Costs associated with Bankwest, including the transition of business banking to CBA, and changes in the group’s operating model; and
- “Costs in relation to a one-off levy for the Compensation Scheme of Last Resort following approval by Parliament in June.
The bank said that “in order to present a transparent view of the business’ performance, the group will exclude the items from underlying operating expenses.”
Thus, the bank will present operating expenses both on an underlying and headline basis.
The CSLR is looking at satisfying in the order of $700 million of aged claims, based on an estimate from the Australian Financial Complaints Authority earlier this year.
Australia’s ten largest banking and insurance groups, including CBA, must pay a one-off levy to fund accumulated unpaid claims between November 2018 and September 2022.
CBA will announce its full year results next Wednesday.