Commonwealth Bank Of Australia FY17 Profit Rises

  • Commonwealth Bank Of Australia FY17 Profit Rises

Commonwealth Bank Of Australia FY17 Profit Rises

"Therefore, in advance of the presentation of CBA's financial results tomorrow, the board advises that it has chose to reduce to zero the short-term variable remuneration outcomes for the CEO and group executives for the financial year ended 30 June 2017", the announcement said.

AUSTRAC also alleges that the bank failed to report suspicious matters either on time or at all, involving transactions totalling more than A$77 million.

Mr Narev is among the bank's executives to have their 2017 bonuses slashed in response to allegations by regulator AUSTRAC - the Australian Transaction Reports and Analysis Centre - that CBA failed to provide the necessary on-time reports for more than 53,500 transactions.

The bank's board said it has established a dedicated sub-committee of four directors to oversee CBA's response to AUSTRAC's statement of claim filed in the Federal Court.

In the case of Mr Narev, who is likely to announce a record full-year profit of nearly $10 billion, the decision could cost him close to $1.5 million.

CBA has blamed the threshold reporting problem on a computer system error that removed the AUSTRAC automatic reporting code, following a software upgrade.

For their part, Commonwealth Bank officials say the transactions went unreported because of an apparent coding error.

Stricter rules when taking on new customers.

Chief executive Ian Narev, who is facing calls to resign, admitted "mistakes were made" and said he was focussed on dealing with the issue.

"We know that we've made mistakes; we have fixed a lot of those mistakes and we will continue to look to make our business better and better".

Cash earnings, a measure followed by analysts that strips out certain costs and one-time items, were 4.6% higher at A$9.88 billion, ahead of the A$9.79 billion median of 10 analyst forecasts compiled by The Wall Street Journal.

Net interest income increased 4 percent to A$17.60 billion from A$16.94 billion a year ago.

One CBA's tech-related strategic priorities in the 2017 financial year was to enhance the home loan experience for customers by better integrating its branch, online and mobile channels.