Commonwealth Baank is burning around $350 million a year in providing cash services across its branch network and ATM fleet.
CBA put the total cost of providing cash services over the year to June 2024 at $410 million.
This is the first time CBA, or any bank, has disclosed any data on the underlying cost of the cash services side of its business.
CommBank, presumably, has done so to further the heated debate over the last year around the sustainability and economics of cash, which has arisen in the context of fears that Armaguard (the near monopoly supplier of cash-in-transit services) might go under.
Cash services, at least at CBA, is a “challenging commercial model” the bank said in the investor presentation for its June 2024 full year results. And this is putting it mildly.
CBA has a fleet of more than 1900 ATMs and around 740 branches, with branch numbers significantly reduced over the years.
The bank has the largest branch and ATM network in the industry, with 40 per cent of branches based in regional Australia.