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In an update to shareholders, the Commonwealth Bank of Australia (CBA) has revealed that its 2019 half year financial results (HY19), will account for a total $355 million in additional costs.
The costs include:
- A “higher than expected” remediation costs of $100 million paid to its Credit Card Plus, Personal Loan Protection and Home Loan Protection insurance
- An indemnity provision of $200 million for historical remediation issues associated with its demerged mortgage broking and wealth businesses
- A $55 million provision for transaction and separation costs in relation to its sale of Comminsure Life
However, the additional costs will be offset by professional indemnity insurance recoveries totalling $135 million, reducing the net impact of the additional costs to $220 million.
CBA announces new board appointment
Further, CBA chairman Catherine Livingstone has announced the appointment of Professor Genevieve Bell as an independent non-executive director to the board with effect from 1 January 2019.
Ms Bell, who is a cultural anthropologist, technologist and futurist, works as a professor at the College of Engineering and Computer Science at the Australian National University (ANU) and is the inaugural Florence Violet McKenzie chair at the university.
Ms Bell also serves as a director of the Autonomy, Agency and Assurance Institute, an ANU strategic initiative focused on the management of the impact of artificial intelligence, data and technology.
Prior to joining ANU, Professor Bell spent 18 years at Intel Corporation, including as vice president directing Intel’s Digital Home Group.
Commenting on the appointment, Ms Livingstone said: “I am delighted to welcome Genevieve as a director of Commonwealth Bank.
“With her thorough understanding of technology in society and business, Genevieve will bring a unique and strategic perspective as we pursue our purpose of improving the financial wellbeing of our customers and communities.”