CBA takes stake in Aussie
(29 August 2008 – Australia) CBA has announced that it has reached an agreement to acquire a 33 percent share in lender Aussie Home Loans.
CBA reached the agreement with the founder and executive chairman of Aussie, John Symond.
Aussie will continue to be an independently managed and run operation under the control of Symond. CBA will have a minority representation on the Aussie board, with no management involvement in the day to day running of the company.
Symond said that Aussie will now be able to provide customers with a broader product offering and the financial muscle to seize opportunities in this current period of consolidation in the non-bank sector.
Further, Aussie will have the opportunity to gain additional wholesale funding from CBA for their mortgage products, he added.
Symond emphasised that Aussie will remain strongly independent and will maintain and broaden their alliances with other financial services groups to source the best products available for customers.
From CBA’s perspective, the acquisition of a minority shareholding by the bank is a strategic holding and provides it with an additional investment in the strong and growing home loan industry in Australia.
CBA expects Aussie to maintain and build on its existing position in the mortgage supply and broker markets.
CBA chief executive, Ralph Norris said that because some consumers seek the advice and assistance of mortgage brokers, a strategic investment in one of the market leading providers in this industry is a natural fit for the bank.
Aussie will continue to be an independently managed and run operation under the control of Symond. CBA will have a minority representation on the Aussie board, with no management involvement in the day to day running of the company.
Symond said that Aussie will now be able to provide customers with a broader product offering and the financial muscle to seize opportunities in this current period of consolidation in the non-bank sector.
Further, Aussie will have the opportunity to gain additional wholesale funding from CBA for their mortgage products, he added.
Symond emphasised that Aussie will remain strongly independent and will maintain and broaden their alliances with other financial services groups to source the best products available for customers.
From CBA’s perspective, the acquisition of a minority shareholding by the bank is a strategic holding and provides it with an additional investment in the strong and growing home loan industry in Australia.
CBA expects Aussie to maintain and build on its existing position in the mortgage supply and broker markets.
CBA chief executive, Ralph Norris said that because some consumers seek the advice and assistance of mortgage brokers, a strategic investment in one of the market leading providers in this industry is a natural fit for the bank.
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