Skip to content
International Adviser
  • Contact
  • Login
  • Subscribe
  • Regions
    • United Kingdom
    • Middle East
    • Europe
    • Asia
    • Africa
    • North America
    • Latin America
  • Industry
    • Tax & Regulation
    • Products
    • Life
    • Health & Protection
    • People Moves
    • Companies
    • Offshore Bonds
    • Retirement
    • Technology
    • Platforms
  • Investment
    • Equities
    • Fixed Income
    • Alternatives
    • Multi Asset
    • Property
    • Macro Views
    • Structured Products
    • Emerging Markets
    • Commodities
  • IA 100
  • Best Practice
    • Best Practice News
    • Best Practice Awards
  • Media
    • Video
    • Podcast
  • My IA
    • Events
    • Directory
    • IA Tax Panel
    • IA Intermediary Panel
    • About IA

ANNOUNCEMENT: Read more financial articles on our partner site, click here to read more.

SIGN IN INTERNATIONAL ADVISER

Access full content on the International Adviser site, access your saved articles, control email preferences and amend your account details

[login-with-ajax]
Not Registered?

CBA’s wealth management spin-off surprises market

By Will Grahame-Clarke, 26 Jun 18

The Commonwealth Bank of Australia (CBA) is to de-merge its wealth management and mortgage businesses and undertake a review of its general insurance business, with a view to potentially selling it.

The de-merged business, CFS Group, will include CBA’s Colonial First State, Colonial First State Global Asset Management (CFSGAM), Count Financial, Financial Wisdom and Aussie Home Loans businesses.

CBA said the move would “unlock value” and allow CFS to pursue its own growth strategy.

The bank has been dogged by scandal in the wake of the Australian Royal Commission.

The chairman of CFS Group will be John Mulcahy. The search for a chief executive is underway.

Nigel Williams of ANZ bank will become chief risk officer replacing David Cohen who becomes deputy chief executive – leading the de-merger from 5 November.

Market Reaction

CBA chief executive Matt Comyn said: “The wealth management and mortgage broking businesses are each high-quality franchises.

“With innovation and disruption in wealth management increasingly favouring specialist companies, they will benefit from independence and the capacity to focus on new growth options without the constraints of being part of a large banking group.”

The move, which was not anticipated by analysts, saw CBA stock fall 2% initially before closing down 2.3% on Monday.

Tags: CBA

Share this article
Follow by Email
Facebook
fb-share-icon
X (Twitter)
Post on X
LinkedIn
Share

Related Stories

  • Asia

    HSBC appoints head for wealth in Singapore

    Africa

    IA: In The Loop Podcast 4 – Phil Story, Investors Trust

  • Asia

    Capital Group survey points to implications around “the Great Wealth Transfer”

    Companies

    Puma Investments appoints Jeremy Roberts MD


NEWSLETTER

Sign Up for International
Adviser Daily Newsletter

subscribe

  • View site map
  • Privacy Policy
  • Terms and Conditions
  • Contact

Published by Money Map Media – part of G&M Media Ltd Copyright (c) 2024.

International Adviser covers the global intermediary market that uses cross-border insurance, investments, banking and pension products on behalf of their high-net-worth clients. No news, articles or content may be reproduced in part or in full without express permission of International Adviser.