Commonwealth Bank shares slip on ASB Bank class action payout
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More news: Shares in Commonwealth Bank dropped in morning trade after the bank's New Zealand subsidiary ASB Bank agreed to pay around $120 million to resolve class action proceedings.
CBA shares were down 1% to $168.28 at midday AEDT, while the wider financial sector dropped 0.51%. However, the stock is up 24.9% over the last 12 months.
CBA subsidiary ASB Bank agrees to pay $120m to resolve class action
The news: Commonwealth Bank's New Zealand subsidiary ASB Bank has agreed to pay NZD135.6 million ($119.7 million) to resolve class action proceedings served in September 2021.
The context: The case was brought by a group called Banking Class Action against ASB and ANZ, alleging both banks breached New Zealand's Credit Contracts and Consumer Finance Act.
The settlement with ASB was reached without it admitting liability and is subject to court approval.
The source: ASX
