Commonwealth Bank of Australia (CBA) has shelved plans to spin off its wealth management arm as pressure from the Royal Commission on the big four subsides.
CBA said it is focussing on implementing the recommendations from Commissioner Kenneth Hayne, paying back customers and addressing legacy issues within the bank.
“Accordingly, CBA has suspended preparations for the demerger in order to support the focus on these priorities,” the bank said.
CBA first announced plans to demerge the wealth management business in 2018 in the midst of the Banking Royal Commission.
The move was seen by some as an attempt to get ahead of any recommendation from the commission to end vertical integration.
As it turned out, vertical integration didn’t end up in Commissioner Kenneth Hayne’s sights. Bank shares rose after the report was handed down as the recommendations fell short of market expectations.
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