Commonwealth Bank Statement in Response to ASIC Notice
Sydney, 14 October 2009: The Commonwealth Bank today agreed to pay a $100,000 penalty after ASIC issued an infringement notice in relation to the Bank’s capital raising in December 2008.
The notice states that the payment is not an admission of liability and cannot be regarded as a finding that the Bank contravened the Corporations Act.
The Group’s Chief Executive Officer, Ralph Norris, said Commonwealth Bank was disappointed with ASIC’s decision to issue the infringement notice.
“Loan impairment expense is a single line item in the Group’s profit and loss statement and cannot be considered in isolation,” Mr Norris said.
“As noted in our ASX announcement at the time, we were experiencing strong volume and revenue growth which, in our view, significantly offset the forecast increase in loan impairment expense, such that the net impact on our overall profitability was not material.”
Mr Norris said the bank has reviewed, and would continue to regularly review, its continuous disclosure procedures and introduce improvements where appropriate.