The ABC delays the split of the mortgage broker

The Commonwealth Bank of Australia (CBA) announced Thursday that it was delaying its plans to split wealth management and mortgage brokerage activities.

This decision stems from the intention to give priority to the implementation of the recommendations of the Royal Bank Commission, the reimbursement of customers and the correction of back issues.

However, the ABC stated that it remains committed to its strategy of becoming a simpler and more efficient bank, which includes the exit of its wealth management and mortgage brokerage activities. .

The bank disclosed the split in June 2018, pointing out that it needed to rationalize its business model and focus on more traditional banking services by consolidating its Colonial First State brands and its mortgage brokerage business, Aussie Home Loan, in a company called "CFS". Group. "

However, in October, the CBA announced that it would sell the colonial asset management of First State Global Asset Management to Japan's Mitsubishi UFJ Trust and Banking Corporation for $ 4.13 billion, while continuing the split of the remaining assets.

Experts have speculated that the initial CBA project to launch the company this year, nicknamed "NewCo", could have faced challenges.

"NewCo is also much smaller than what was announced in April of last year, after an agreement reached in October for the sale of Colonial First State Global Asset Management to a giant Japanese bank for $ 4.1 billion, "said The Sydney Morning Herald. ]

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