Here’s why CBA shares have been making headlines this week

CBA share price represented by branch welcome signCBA share price represented by branch welcome sign

Commonwealth Bank of Australia (ASX: CBA) shares are down 0.5% at the time of writing.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $100.92. Shares are currently swapping hands for $100.43.

The 0.5% intraday decline is broadly in line with losses being posted by the other big four banks.

That’s today’s price action for you.

Now here’s why CBA shares have been making headlines this week.

What’s putting the ASX 200 bank in the headlines?

CommBank made headline news on Wednesday after the bank admitted in Federal Court that management was aware thousands of staff were underpaid a total of $16.1 million since 2010, yet they allowed the practice to continue.

Finance Sector Union national secretary Julia Angrisano said the bank’s admission should cause everyone “deep unease”.

CommBank is potentially facing fines of $660,000 per breach under a provision of the Fair Work Act. With 7,402 impacted staff, that could add up!

A spokesman for Australia’s biggest bank said:

We acknowledge that any instance of employees not being paid their correct entitlements is unacceptable. CBA and CommSec have co-operated fully and engaged constructively with the FWO during its investigation and the proceedings.

CBA shares closed flat on Wednesday.

The big four bank was back in the headlines on Thursday.

That came amid fresh news that CommBank is carrying out exclusive due diligence to potentially acquire business lender ScotPac, owned by Affinity Equity Partners. The Motley Fool first reported on that potential takeover on 28 March.

CBA has now hired advisory company Gresham to carry out due diligence on ScotPac.

CBA shares closed up 1.6% on Thursday.

Yesterday the bank also reported on the expansion of its range of green financing to support its clients.

The maximum loan for the bank’s Green Loan will increase from the prior $20,000 to $30,000. The range of eligible products that can be funded under the loan will also be expanded from mid-2023.

“CommBank is dedicated to supporting Australia’s energy transition, and rewarding our customers for making more sustainable choices,” CBA retail banking group executive Angus Sullivan said.

How have CBA shares been tracking?

As you can see in the chart below, CBA shares have dropped 7% over the past 12 months. The stock is up 4% since 21 March.

The post Here’s why CBA shares have been making headlines this week appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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