Is executive pay behind CBA’s capital raising?
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Independent Financial Research
Companies usually announce capital raisings when they’re in financial trouble or are on the cusp of a substantial takeover. Australia’s banks, all of which are announcing near-record profits and large capital raisings, face neither of these things. What’s going on? After announcing the largest-ever profit by an Australian bank, CBA (ASX:CBA), like ANZ and NAB before it, yesterday also notified investors of a rights issue of $5bn. This unusual. A company that makes $9.1bn doesn’t normally hit investors up for another $5bn in a capital raising. But this is the Australian banking sector, where things are never quite what they seem. Companies usually announce capital raisings when they’re in financial trouble or are on the cusp of a substantial takeover. (VIEW LINK)
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Intelligent Investor is an independent financial research service with a 14-year history of beating the market. Our value investing approach empowers Australians to make more informed decisions to build their long-term wealth. We off structural...
Expertise
No areas of expertise