Commonwealth Bank shares doubled as Australia's largest lender returned to the Royal Financial Services Commission, confirming the spinning of its global asset management.
All four major banks lost ground after AMP's two-day mauling of the royal commission, with CBA posting the biggest drop down 0.5 percent. to $ 72.41.
AMP shares continued to slide and decreased another 2.2%. to $ 4.45.
Australia's largest bank has charged more fees for no service than other other financial services unit in the country, the Royal Commission heard Wednesday.
"It would be the gold medal if ASIC awarded medals for fees without service, it would not" advise the royal commission Mark Costello asked. 19659003] Linda Elkins, Managing Director of the Bank's wealth management arm Colonial First State, answered yes.
The CBA announced last Tuesday that it would list the Colonial First State Global Asset Man CFSGAM (CFSGAM) by the end of 2018.
CFSGAM, named First State Investments outside Australia, was managing 219 billion at the end of last year. USD of assets on behalf of institutional investors, pension funds, wholesalers, investment platforms, financial advisors and their customers.
The 2017 cash surplus of $ 191 million accounted for 34% of CBA's total asset management, but was 17%. lower than the previous year.
"While CFSGAM has achieved significant growth, scale and diversification under the current ownership structure, the strategic review found that an independent proprietary model would provide greater benefits." CBA said in a statement.
The bank said an initial public tender was among its options when it announced a strategic review of the device in September last year.
It has already sold its life insurance operations to Asia's AIA for 3.8 billion. USD.