The chief executive of Commonwealth Bank Australia (CBA), Mat Comyn, has defended the bank's charging of £270 million in fees to low-income customers, arguing that reimbursing the money would amount to an 'appropriation' of shareholder funds. Appearing before a parliamentary committee in Canberra, Comyn rejected calls to follow rival Westpac in fully refunding the fees, which were deemed 'excessive' by the Australian Securities and Investments Commission (ASIC).
ASIC found that CBA and its subsidiary Bankwest charged approximately £270 million in fees—including account-keeping, dishonour, and overdraw charges—to about 2.2 million low-income customers over five years. Despite CBA reporting a record cash profit of £10.3 billion in its most recent financial year, Comyn argued that the fees were charged in accordance with the bank's terms and conditions and were not unlawful.
'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,' Comyn told the committee. He added that shareholders might view such a repayment as 'effectively appropriation of their property.'
In contrast, Westpac CEO Anthony Miller confirmed that his bank would fully refund nearly £10 million in fees charged to low-income customers, with the process expected to be completed by March next year. Westpac will also automatically migrate eligible customers into low-fee accounts, with an opt-out option.
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 insisted the fees were not unlawful, he acknowledged there was 'some scope' to make goodwill payments to some customers. The controversy comes amid heightened scrutiny of Australia's banking sector and its treatment of vulnerable customers.
