Commonwealth Bank of Australia (ASX: CBA) has a plan to build trust, will that boost the share price?
Commonwealth Bank of Australia or CBA is Australia’s largest bank, with commanding market share of the mortgages (24%), credit cards (27%) and personal lending markets. It has 16.1 million customers, 14.1 million are in Australia. It is entrenched in the Australian payments ecosystem and financial marketplace.
What’s Going On At Commonwealth Bank Of Australia?
The Royal Commission was a terrible showing for the banks. Charging fees for no service provided. Fees upon fees charged to clients. Poor insurance practices. Sales and profit put before customer service. Potential criminal breaches.
CBA, Australia and New Zealand Banking Group (ASX: ANZ), National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) had their reputations battered and bruised. AMP Limited (ASX: AMP) also didn’t have a good time.
The banks are going to have to work hard to fix their reputations, which is what CBA CEO plans to talk about today at a business lunch according to reporting by the Australian Financial Review.
The AFR reported that Mr Comyn will say the bank is: “Embracing a new mindset, where we are listening and hearing more, owning mistakes and fixing them faster, putting customers first, and harnessing the full potential of our people and our technology to make a meaningful difference in our customers’ lives.” That sounds good, right?
Another of the things that CBA is going to do is remove millions of dollars of fees for customers.
CBA will be focusing on gaining the community’s trust. CBA will try to be “capable and reliable, to act transparently, and to deliver better outcomes for customers and the community. All three are necessary. And all three require consistency – consistency of intent, consistency of action and consistency of outcomes.”
Is CBA A Buy?
With the CBA share price lower than it was five years ago, I don’t think there’s any rush to buy CBA shraes, even with the post-election positivity.
It does have a fully franked dividend yield of 5.6%, but I think there are more reliable ASX shares to consider for my portfolio such as the ones in the free report below.
[ls_content_block id=”14945″ para=”paragraphs”]
[ls_content_block id=”18380″ para=”paragraphs”]
