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Published on: Wednesday, August 08, 2018

·      The Commonwealth Bank has posted a full-year cash profit of $9.23 billion, down 4.8% on the year before, and putting an end to the company’s eight-year run of profit growth. It has been a turbulent year for the bank, dented by the cost of settling a money-laundering compliance lawsuit and a jump in compliance and regulatory costs.

·      AMP posted a $115 million interim net profit, down $445 million a year earlier. Underlying profit also fell, from $533 million to $495 million. AMP said its wealth management business took a costly blow of $873 million following revelations at the royal commission that AMP misled ASIC about an inquiry into its practice of charging customers for services it had not provided.

·      Former British foreign secretary Boris Johnson has sparked outrage after saying women who wear burqas look like “letter boxes” and bank robbers. PM Theresa May has backed calls for Mr Johnson to apologise, saying the remarks have "clearly caused offence". In a telegraph newspaper column, Mr Johnston said he opposed banning burqas and other face covering garments but felt it was “absolutely ridiculous that people should choose to go around looking like letter boxes.”

·      Corporate regulator ASIC has revealed the total payout to customers of CBA, AMP, ANZ, National Australia Bank, Westpac and other major financial institutions could jump to $850 million from the more than $200m already paid to customers caught up in the “fees for no service” scandal. The news came as the royal commission heard evidence that NAB misled ASIC over its fee scandal and details of how its bid to play down the problem was taken all the way to chief executive Andrew Thorburn.

·      Wesfarmers is on track to exit the coal business by December 2018 after agreeing to sell its stake in the NSW Bengalla coal mine for $860 million, freeing up 3.5billion to invest in new business. The conglomerate has owned a stake in coal mines since 1989.

·      Overnight in the US, the Dow Jones rose 0.2% to 25,502 the S&P 500 lifted 0.4% to 2,850 and the Nasdaq rose 0.6% to 7,860. Meanwhile in Europe, the FTSE rose 0.1% to 7,664 and the DAX dropped 0.1% at 12,598.

 


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