CBA reaching for 100% ownership of Aussie: AFR

by Miklos Bolza23 Mar 2017
The Commonwealth Bank of Australia (CBA) is allegedly in discussions to purchase the remaining 20% share of Aussie Home Loans.

According to the Australian Financial Review’s column Street Talk, the bank is working towards 100% ownership of the franchise with the final price to be based off Aussie’s performance and profits for the year to 30 June.

The 20% claimed to be on the line is now owned by Aussie Home Loans’ founder John Symond. CBA last expanded its share of Aussie in December 2012 when it increased its shareholding from 33% to 80% for an undisclosed amount.

In an interview last September, Symond confirmed to The Australian that he would be stepping back from his role as a fulltime executive at Aussie this year.

“John and wife Amber plan to spend more time overseas after his fulltime role as executive chairman of Aussie Home Loans is completed in the second half of 2017,” a spokesperson told the publication.

Both CBA and Aussie declined to comment when approached by Australian Broker yesterday (22 March).

Related stories:

Mortgage franchise’s loan book grows to record $76bn

Mortgage franchise chief dismisses talk of systemic ‘mis-selling’

ASIC bans former Aussie Home Loans broker

COMMENTS

  • by Ray 23/03/2017 8:54:09 AM

    I guess that is one broker the CBA is dealing with?

  • by Check your options people. 24/03/2017 11:44:55 AM

    So in the current environment with ASIC all over the Banks and Brokers.... how can ASIC allow a Major Bank to own a Major Aggregator in its entirety? Aussie Brokers nationally are already pushing the majority of their business to CBA.... how can that be ethical lending? CBA already have minimum submission requirements for brokers to retain their accreditation which is a joke in itself.

  • by 25/03/2017 12:23:09 PM

    sorry, but that's just not true about the majority of business going to CBA. I have been with Aussie 16 years and i hardly write much CBA or Aussie Select (which is CBA funded) at all. It's still always about the best most "Suitable" loan for the borrower. It does come and go in waves though, you know it, this month AMP have a special, last month it was Suncorp, before that it was ING. The best deal for the client is still and always has been , the best deal for the client. and you know what CBA and AHL select are in the low end of the "who pays the best commissions" stakes. so to push CBA because of some "assumed" benefit is just dumb.