CBA to write up to A$2 billion off Colonial: reports
(Australia) - Australia's second ranked Commonwealth Bank of Australia is set to write down the value of its Colonial First State funds management business by as much as A$2 billion, according to reports.
A JP Morgan research note claims that the CBA will make the write-downs when it reports interim earnings on February 12, results which are expected to show a significant slowdown in the Colonial First State funds and life insurance businesses.
The operation was acquired in the A$9.5 billion merger with the Colonial group in 1999.
CBA chief David Murray responded by saying that the Colonial business was "very conservatively valued" which helped re-assure analysts and support the bank's share price.
The operation was acquired in the A$9.5 billion merger with the Colonial group in 1999.
CBA chief David Murray responded by saying that the Colonial business was "very conservatively valued" which helped re-assure analysts and support the bank's share price.
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