The chief executive of Commonwealth Bank Australia (CBA), Mat Comyn, has defended the bank's decision not to fully refund £270 million in fees charged to low-income customers, arguing that doing so would be an 'appropriation' of shareholder money. The fees, including account-keeping, dishonour and overdraw charges, were levied on about 2.2 million customers over five years, according to the Australian Securities and Investments Commission (Asic).
During a parliamentary committee hearing in Canberra, Comyn insisted the charges were 'not improper' and were made in accordance with the bank's terms and conditions. He rejected Asic's characterisation that every dollar of the fees was excessive, saying, 'It's not merely a question of just handing the money over. It's, of course, not my or our money. It's the money of our owners.'
The comments come despite CBA reporting a record cash profit of £10.3 billion in its most recent financial year. Other banks, such as Westpac, have committed to fully refund the fees deemed excessive by the regulator. Westpac CEO Anthony Miller told the committee that his bank would refund nearly £10 million to affected customers by March next year.
Morgan Campbell, head of policy at consumer group Choice, criticised Comyn's stance, stating, 'Before this money was in the pockets of Commbank shareholders, it was in the bank accounts of Australians on low incomes and it should never have been taken out. His shareholders should never have had it in the first place.'
While Comyn indicated some 'goodwill' payments might be made, he stopped short of a full refund. The parliamentary committee continues to scrutinise the bank's practices.
