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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is tumbling lower. The benchmark index is currently down 0.5% to 7,395.5 points.

Here’s what is happening on the ASX 200 on Wednesday:

Spark Infrastructure takeover update

The Spark Infrastructure Group (ASX: SKI) share price is charging higher today after the electricity distribution company received another takeover offer. The company revealed that the Ontario Teachers’ Pension Plan Board and KKR have increased their offer to $2.95 per share after two previous rejections. On this occasion, the Spark Board has granted due diligence. Though, it has warned that there is no certainty that this will result in a control transaction.

Virgin Money UK Q3 update

The Virgin Money UK CDI (ASX: VUK) share price is pushing higher today after investors responded positively to the UK bank’s third quarter update. Among the highlights, Virgin Money UK reported a 0.7% increase in mortgages to 58.7 billion pounds and a 2.5% lift in personal lending to 5.2 billion pounds. Also heading in the right direction was its net interest margin, which increased to 168bps.

Eagers Automotive reports profit surge

The Eagers Automotive Ltd (ASX: APE) share price is rising today after reporting a surge in its half year profits. According to the release, for the six months ended 30 June, Eagers Automotive expects to record an underlying operating profit before tax from continuing operations of approximately $218.6 million. This will be up 442% on the prior corresponding period, which was impacted by COVID-19.

Best and worst ASX 200 performers

The best performer on the ASX 200 today has been the Spark Infrastructure share price with a 5.5% gain. This follows the receipt of another takeover offer. The worst performer on the ASX 200 has been the Nickel Mines Ltd (ASX: NIC) share price with a 7% decline. This follows the release of the nickel producer’s quarterly update.

The post ASX 200 midday update: Spark takeover, Virgin Money update appeared first on The Motley Fool Australia.

More reading

• Why the Spark Infrastructure (ASX:SKI) share price hit a new 52-week high
• Eagers Automotive (ASX:APE) share price races higher after 440% profit jump
• 2 ASX 200 shares that keep growing their dividends
• Why the Virgin Money UK (ASX:VUK) share price will be on watch today
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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The Tesoro Resources Ltd (ASX: TSO) share price is tumbling today, down 31% in late morning trade having earlier posted losses of 35%.

Below we take a look at the ASX gold share’s resource update that looks to be driving some of the selling action.

What resource update did Tesoro report?

The Tesoro Resources share price is falling hard after the company announced its maiden Mineral Resource Estimate (MRE) for the Ternera Deposit at its El Zorro Gold Project in Chile.

It reported a maiden MRE of 25.1 million tonnes at 0.8 grams per tonne for 660,000 ounces of gold. It used 0.3 grams per tonne of gold as a cut-off.

The highlights included 15.4Mt @ 1.09 g/t for 540,000 ounces, using a 0.5g/t Au cut-off. But that wasn’t enough to keep the Tesoro Resources share price from sliding today.

Commenting on the “significant, but incremental MRE” at the project, Tesoro’s managing director Zeff Reeves said:

We see this as just the start for El Zorro, we are committed to significantly increasing this Mineral Resource via our ongoing drilling programs with the deposit at Ternera open in all directions. We are also seeing significant potential for additional resources to be added over the coming months from other targets, particularly the adjoining Ternera East and Drone Hill targets, which is not included in the MRE.

Reeves added that a range of project studies are proceeding to help determine the company’s potential to develop a gold mine at El Zorro.

Tesoro has drilled 201 diamond drill holes at the project since starting work there in 2017. Its maiden MRE is derived from 148 of those holes totalling 46,937 metres.

The diamond drill exploration program will continue through 2021. The company has 6 drill rigs operating around the clock at El Zorro.

Tesoro Resources share price snapshot

The Tesoro Resources share price, currently at 11 cents, has been all over the map this past year, hitting a high of 50 cents per share on 15 October 2020. Over the past full year shares are down 18%, compared to a gain of 25% on the All Ordinaries Index (ASX: XAO).

Year-to-date the Tesoro Resources share price is down 64%.

The post Here’s why the Tesoro Resources (ASX:TSO) share price is tumbling 31% today appeared first on The Motley Fool Australia.

More reading

• Tesoro Resources (ASX:TSO) share price climbs on quarterly update

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 Bruce Jackson.

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The Temple & Webster Group Ltd (ASX: TPW) share price is giving back some of yesterday’s strong gains on Wednesday.

In morning trade, the online furniture and homewares retailer’s shares are down 3% to $12.08.

Despite this, the Temple & Webster share price is still up 48% over the last 12 months.

Why is the Temple & Webster share price dropping?

Today’s weakness in the Temple & Webster share price appears to have been driven by a combination of profit taking and the release a broker note out of Bell Potter.

In respect to the latter, this morning Bell Potter responded to the company’s FY 2021 results by maintaining their hold rating.

And while the broker has lifted its price target to $12.40, this was a touch short of where its shares were trading prior to today.

What did Bell Potter say?

Bell Potter described Temple & Webster’s full year results as “robust” and notes that it is comfortably cycling a tough prior corresponding period.

It commented: “FY21 sales of $326.3m (BPe $328.7m) was up 85% vs pcp. After achieving 3Q21 growth of 112%, TPW achieved growth of 26% in 4Q21 against a tough pcp (4Q20 growth of 130%). During 2H21 TPW flagged its intent to put the ‘foot down’ to drive revenue growth and expand its market leadership. We believe the early benefits of this is evident in TPW’s 4Q21 sales result, with positive momentum continuing in July (up 39% vs pcp), albeit we believe July has also been buoyed by recent lockdowns.”

However, the broker is holding firm with its hold rating on valuation grounds. It notes that the Temple & Webster share price trades at a significant premium to US peer Wayfair.

The broker explained: “While we recognise TPW’s opportunities remain significant and maintain a positive long-term view, on a 12-month investment horizon we retain our Hold based on valuation (TPW FY22/FY23 EV/sales of 3.4x/2.5x which is at a fair premium vs Wayfair of 1.8x/1.5x). We are also cautious on the near-term domestic macro outlook for discretionary retail.”

The post What this top broker thinks of the Temple & Webster (ASX:TPW) share price appeared first on The Motley Fool Australia.

More reading

• Why the Temple & Webster (ASX:TPW) share price could be a buy after the FY21 result
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• Why BlueScope, Japara, OZ Minerals, & Temple & Webster are storming higher
• 2 top ASX growth shares reporting strong growth

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Tesla (NASDAQ: TSLA) fell sharply on Tuesday, declining nearly 4% as of 11:40 a.m. EDT. The growth stock’s decline follows the electric-car maker’s second-quarter report, which was released after the bell on Monday.

Tesla shares are likely trading lower primarily because of a bearish day in the overall market. But an analyst’s note to investors about the stock’s frothy valuation may also be weighing on the stock.

So what

When Tesla reported its second-quarter results on Monday afternoon, shares initially rose several percentage points in after-hours trading. Optimism for the stock wasn’t surprising, as the company’s revenue and earnings easily beat analysts’ consensus forecasts for the two metrics.

Revenue nearly doubled year over year, reaching about $12 billion. This beat analysts’ consensus forecast for $11.3 billion. Non-GAAP (adjusted) earnings per share came in at $1.45, beating analysts’ average projection of $0.98.

But the market’s sharp pullback on Tuesday is likely weighing on shares. The S&P 500 is down nearly 1% at the time of this writing, and the Nasdaq Composite is down almost 2%.

Another reason for the stock’s decline on Tuesday could be an analyst’s decision to reiterate an underperform rating for the stock following Tesla’s earnings release. While Needham analyst Rajvindra Gill acknowledged improvements in the company’s cost structure, he also said that shares appear to be priced for perfection.

Now what

Despite the stock’s negative price action today, investors should be encouraged by Tesla’s record second quarter. Not only was the automaker’s financial performance impressive but management said global orders for its vehicles are at an all-time high. In addition, Tesla reiterated guidance for total deliveries in 2021 to grow more than 50% year over year.

Of course,  it’s true that valuation is something investors should consider carefully. They should be mindful that Tesla’s high valuation has priced in staggering growth for years to come.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla stock fell on Tuesday appeared first on The Motley Fool Australia.

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Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. 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 Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Spark Infrastructure Group (ASX: SKI) share price is up to a new 52-week high after accepting a third takeover bid from a consortium of investors for $2.95 per share.

At the time of writing, shares in the company are trading for $2.72 each – up 4.62%. They opened at a 12-month high of $2.78.

Let’s take a closer look at today’s news.

The Spark Infrastructure share price just hit a new high

In a statement to the ASX, Spark Infrastructure says the Ontario Teachers’ Pension Plan Board and Kohlberg Kravis Roberts & Co (the consortium) have upped their offer after twice being rebuffed by the company.

The initial bid of $2.65 per share saw the Spark Infrastructure share price rise to its previous yearly high of $2.67.

In its statement, Spark says the price of the bid will be reduced by the dividend it pays for the interim period. On 1 July the company said this would be 6.25 cents per share. This implies a proposed price of around $2.89 per security.

The new bid represents a premium of:

• 26% on the Spark Infrastructure share price on 13 July close.
• 31% on the 3-month volume weighted average price.

While the group says it will engage further with the consortium, and allow it to complete the necessary due diligence, it notes “there is no certainty” it will proceed.

Any potential merger will be subject to standard conditions, such as completion of satisfactory due diligence, regulatory approval, and final approval by shareholders of Spark and the consortium.

This new bid values Spark Infrastructure at approximately $5.2 billion.

Company Profile

Spark Infrastructure owns 49% interest in three electricity distribution companies. Two of these are in Victoria and one is in South Australia. It also owns 15% of TransGrid, which supplies electricity to New South Wales. These assets are heavily regulated for both standards and pricing.

Spark Infrastructure share price snapshot

Over the past 12 months, the Spark Infrastructure share price has increased about 20%. Year-to-date, the company’s value has appreciated by an even greater 27%.

The post Why the Spark Infrastructure (ASX:SKI) share price hit a new 52-week high appeared first on The Motley Fool Australia.

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• ASX 200 Weekly Wrap: ASX shakes off lockdowns to rise higher
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• Why ARB, Rhythm Biosciences, Sezzle, & Spark shares are storming higher
• Spark Infrastructure (ASX:SKI) share price rallies 7% on confirmed bid

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 Bruce Jackson.

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The St Barbara Ltd (ASX: SBM) share price has dipped into the red in early trading. This comes as the company released its quarterly results earlier this morning.

Let’s comb over St Barbara’s results in a bit finer detail.

A quick recap on St Barbara

St Barbara is a gold mining company that has interests at Leonora, Simberi and Atlantic sites. It has a geographical footprint in both Australia and Papua New Guinea.

It derives the bulk of its revenue from the Leonora site through the Gwalia underground mine.

St Barbara has a market capitalisation of $1.25 billion at the time of writing.

St Barbara’s quarterly results

Fourth-quarter gold production came in at 82,698 ounces, a 24% decrease from the year prior.

All-in sustaining costs (AISC) of $1,623 per ounce came in 2% lower than the previous quarter and also more than $300 lower than the same time last year.

The company also recorded full-year gold production of 327,662 ounces on an AISC of $1,616/ounce.

St Barbara also outlined it had seen “significant improvements in operating performance” this quarter, with “record mill throughput rates” at the Atlantic site.

In addition, the Gwalia mine produced its “highest quarter of mill throughput in five years”, despite headwinds incurred from a change in mining contractor.

Moreover, the Simberi site was granted conditional approval to recommence mining. Operations were halted at the site after the death of a worker last month and issues were found with a waste disposal pipeline. Processing at Simberi should recommence at the end of FY22, according to the company.

Additional takeouts

Back in June, St Barbara announced its “Leonara Province Plan”, adding “~1.4 million ounces to the existing 5 million ounces of gold in Mineral Resources”.

In early July, the company also acquired a 19.8% stake in Kin Mining NL (ASX: KIN).

Kin has 1.2 million ounces of “gold resources” near Leonara and has “exploration upside potential”.

St Barbara also provided some colour on FY22 guidance in the report.

It sees FY22 consolidated gold production between 305,000 – 355,000 ounces of gold on an AISC of $1,710 – $1,860/ounce.

Guidance includes the “latest mine plan” at Atlantic, which estimates “lower than expected” ore grades.

Forecasts are “marginally weighted to H2 FY22” as processing at Simberi is aimed for a restart in December during that time.

St Barbara CEO Craig Jetson stated in the report:

All our operations rose to the challenge posed by the second year of the global COVID-19 pandemic and a difficult operating environment with rolling border closures causing additional challenges.

Consequently, investors seem unsatisfied with the company’s results today, as shares exhibited high selling pressure from the open.

At the time of writing, St Barbara shares have recovered from their early dive, down 0.28% on yesterday’s closing price, currently trading at $1.77 a share.

St Barbara share price snapshot

The St Barbara share price has posted a year to date loss of 25%, extending the previous 12 months’ loss of 53%.

Both of these returns have lagged the S&P/ASX 200 Index (ASX: XJO)’s return of ~23% over the past year.

The post St Barbara (ASX:SBM) share price slides 4.8% after quarterly results appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday

The author Zach Bristow has no positions 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 Bruce Jackson.

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The Life360 Inc (ASX: 360) share price is marching higher in morning trade, up 2.15% trading at $8.09.

We take a look at the ASX tech share’s quarterly update for the period ending 30 June, along with an acquisition confirmation.

What updates did Life360 report?

The Life360 share price is gaining after the company firstly reported it had signed definitive agreements to acquire Jiobit. Based in the US state of California, Jiobit provides wearable location devices intended for young children, pets and seniors.

The ASX tech share first reported on the pending acquisition on 27 April, which saw the Life360 share price leap to a then record high.

In its June quarterly update, also released this morning, the company said its global monthly active user (MAU) base increased by 4.2 million over the quarter to reach 32.3 million users.

In the United States, MAU was up 12% over the previous quarter and 25% year-on-year, to 20.3 million users. MAU also grew strongly in Australia, up 48% year-on-year and 18% from the prior quarter, to 836,000 users.

Underlying revenue of US$25.0 million (AU$33.8 million) increased 28% year-on-year, while annualised monthly revenue (AMR) for June increased 36% year-on-year to US$105.9 million.

Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at a loss of US$3.3 million. The company noted this excluded stock based compensation and other non-recurring adjustments.

Commenting on the results, Life360 CEO Chris Hulls said:

Direct revenue was the key driver of the result, benefiting from a 19% year-on-year increase in Paying Circles to 1.0 million, and a 21% uplift in ARPPC. Momentum in our membership model has accelerated with cumulative 327,000 new and upsell subscribers, now accounting for 40% of US paying circles.

While legacy subscribers are grandfathered on their previous plans, the new membership cohort is delivering an ARPPC uplift of 37% versus the first half of 2020.

Life360 share price snapshot

The Life360 share price has gained an impressive 148% over the past 12 months, sailing past the 25% gains posted by the All Ordinaries Index (ASX: XAO).

Year-to-date, the Life360 share price has continued its stellar performance, up 108% so far in 2021.

The post Why the Life360 (ASX:360) share price is marching higher today appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Life360, Inc. 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 Bruce Jackson.

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The Rio Tinto Ltd (ASX: RIO) share price has tipped lower on Wednesday after the company revealed a $2.4 billion investment into its Jadar lithium project.

At the time of writing, the Rio Tinto share price is down 1.04% to $131.12.

Rio Tinto to scale up exposure to battery materials

The Rio Tinto share price might be looking to ride the hype behind the lithium industry after committing $2.4 billion to fund its Jadar lithium-borates project in Serbia.

This move is designed to “scale up Rio Tinto’s exposure to battery materials, and demonstrate the company’s commitment to investing capital in a disciplined manner to further strengthen its portfolio for the global energy transition”.

The Jadar project will produce both battery-grade lithium carbonate, used in electric vehicles and battery storage, and borates, used in solar panels and wind turbines.

The company believes the project will position Rio Tinto as the “largest source of lithium supply in Europe for at least the next 15 years”.

The sheer size and scale of the project is expected to have a significant impact on the Serbian economy.

Rio Tinto estimates that Jadar will be one of the largest industrial investments in Serbia and potentially contribute 1% directly and 4% indirectly to the country’s GDP.

Management commentary

Rio Tinto chief executive Jakob Stausholm said:

We have great confidence in the Jadar project and are ready to invest, subject to approvals. Serbia and Rio Tinto will be well-positioned to capture the opportunity offered by rising demand for lithium, driven by the global energy transition and the project will strengthen our offering, particularly to the European market. It could supply enough lithium to power over one million electric vehicles per year.

When will production start?

The announcement advised the first “saleable” production is expected in 2026 which will be followed by a ramp-up to full production by 2029.

By then, Jadar is expected to produce ~58,000 tonnes of lithium carbonate, 160,000 tonnes of boric acid and 255,000 tonnes of sodium sulphate annually.

Based on these figures, this would position Rio Tinto as one of the top ten lithium producers in the world.

For now, Rio Tinto will be seeking both an exploitation licence and regulatory approvals including the approval of the environmental assessment studies.

Rio Tinto share price nears record highs

The Rio Tinto share price is within an arm’s reach of its 10 May all-time high of $133.42.

Shares in the iron ore major have edged 0.67% lower to $131.58, broadly consistent with the S&P/ASX 200 Index (ASX: XJO) which is down 0.22%.

The post Rio Tinto (ASX:RIO) share price lower after major investment into lithium appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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 Bruce Jackson.

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The IGO Ltd (ASX: IGO) share price is down this morning after the company released its latest quarterly activity report.

IGO has reported earnings before interest, tax, depreciation, and amortisation (EBITDA) margins of 52%, while its Nova operation has exceeded guidance.

However, the IGO share price is in the red. In morning trade, IGO shares are trading for $8.98, 1.1% lower than the previous closing price.

Let’s take a closer look at today’s news from the exploration and mining company.

The news that might be driving the IGO share price

The IGO share price is dropping after it released news of what looks to be a successful quarter.

During the period, it formed a joint venture with Tianqi Lithium. The two will work to deliver IGO’s clean energy strategy.

IGO also continued exploration activities at numerous projects in Australia and Greenland.

The company spent $63.8 million on exploration in the financial year just been. It expects to spend $65 million on exploration during the 2022 financial year.

Financial report

Despite what looks to be a strong financial performance in the quarter ending in June, the IGO share price is being driven lower this morning.

Over the period, IGO brought in $266.2 million worth of sales – 44% more than the previous quarter.

IGO also saw its underlying EBITDA reach $139.5 million. That’s a 50% improvement on its EBITDA for the previous quarter.

The company’s net profit after tax for the period was $453 million. This includes $385 million (after tax) from selling its Tropicana operation at the end of May.

Up until then, Tropicana produced 63,248 ounces of gold at an all-sustaining cost of $1,830 per ounce.

However, the amount of cash IGO has in the bank dropped to $528.5 million after it bought into the joint venture with Tianqi. The company still has $450 million of undrawn debt facilities.

Nova operation

The IGO share price is also down despite a good quarter’s production at Nova.

The company’s nickel, copper, and cobalt operation exceeded production guidance over the fourth quarter.

Additionally, its production costs over the quarter were less than was originally predicted, equalling $1.85 per pound for the full 2021 financial year.

IGO also gave guidance for the 2022 financial year’s activities at Nova. It expects it will have a higher cash cost, costing the company between $2 and $2.20 per pound of nickel produced.

In the 2022 financial year, the company expects Nova to produce between 27,000 and 29,000 tonnes of nickel concentrate, 11,500 to 12,500 tonnes of copper concentrate, and 900 to 1,000 tonnes of cobalt concentrate.

IGO is continuing exploration activities at Nova.

Commentary from management

IGO managing director and CEO Peter Bradford commented on the company’s quarter:

Over FY21, our talented and committed team have safely delivered consistently strong operating and financial performance and have successfully reshaped our asset portfolio – transforming IGO into a future-facing resources business with a strategy focused 100% on clean energy metals…

With the two key transactions now complete and a strong June 2021 quarter performance, IGO is well positioned with a cash position of $528 million and no debt. This balance sheet strength will enable us to fund future growth through exploration and disciplined mergers and acquisitions, while continuing to deliver cash returns to shareholders.

IGO share price snapshot

Despite today’s fall, the IGO share price has been performing well lately.

It has gained 40% year to date. It is also 64% higher than it was this time last year.

The company has a market capitalisation of around $6.8 billion, with approximately 757 million shares outstanding.

The post The IGO (ASX:IGO) share price is falling. Here’s why. appeared first on The Motley Fool Australia.

More reading

• Why the IGO (ASX:IGO) share price is moving higher today
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• The 3 ASX shares that top brokers just upgraded to “buy”
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

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The Commonwealth Bank of Australia (ASX: CBA) share price is trading lower on Wednesday morning.

At the time of writing, the banking giant’s shares are down 1% to $99.78.

This makes the CBA share price the worst performer among the big four banks today.

Why is the CBA share price under pressure?

The softness in the CBA share price today appears to have been driven by the announcement of changes to the bank’s regional branch network.

According to the release, branches across 90 regional locations will change their opening hours to 9:30am to 1:00pm.

After these branches close, staff will begin to assist the bank’s Australian-based contact centres, which it notes are receiving more than a million increasingly complex customer enquiries every month.

Why is CBA making these changes?

CBA’s Executive General Manager of Customer Service Network, Mark Jones, revealed that these moves will allow the bank to adapt to changing customer needs while saving jobs in regional communities.

Mr Jones said: “Our branches in regional Australia will continue to play an important role in delivering great service to our customers now and into the future, and this is an example of how we are adapting to meet changing customers’ evolving needs while ensuring jobs stay in regional communities.”

“We’re expanding our Australian-based contact centre network from five dedicated locations to over 90 communities across the country, while keeping a physical banking presence in regional communities,” he added.

CBA explained that while the coronavirus pandemic has not changed how it determines its branch footprint and services, it has accelerated the continuing shift in customer preferences towards digital and contact centre services.

In recent years, Australia’s largest bank has seen a significant increase in customers self-serving on the app or via NetBank, with CBA now serving 7.5 million digitally-active customers.

What else?

The bank notes that outside of these new trading hours, Bank@Post will continue to be available at 3,500 Australia Post outlets for customers who prefer face-to-face banking services.

CBA recently renewed its 110-year partnership with Australia Post until 2032, so both personal and business customers can make withdrawals, deposits and bill payments, including passbooks, during normal business hours.

It also highlighted that all of these 90 local communities already have convenient 24/7 access to CBA ATMs, which will remain available.

Mr Jones commented: “We understand these changes may be an adjustment for some of our customers, and the team at their local branch will continue to be available to help them find the solutions that best suit their needs.”

“We’re concentrating on offering a range of different but complementary options for millions of Australians to complete their everyday banking, including our branches, Bank@Post, our Australian-based contact centres, ATMs, and our digital services,” he added.

The post CBA (ASX:CBA) share price lower following major regional branch changes appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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