CBA keen on stake in Aussie Home Loans

by InsideFinance 19/08/2008

 The Commonwealth Bank of Australia has suggested an interest in a 30 - 40 percent stake in mortgage provider Aussie Home Loans.  According to the Australian Financial Review, the deal would value the company at more than $200 million.  There has been recent speculation that CBA was looking at a number of businesses up for sale, including BankWest.

CBA recently reported annual profits of $4.73 billion, but said they were cautious about the outlook for 2009, setting aside $212 million in provisions against possible bad loans .

Last week, Mr Norris told the ABC's Inside Business program that he was always on the look out for acquisitions.

"It's about how compelling the acquisition opportunity is, and certainly we will look at all opportunities and we've done that in the past and will continue to do that in the future," Mr Norris said.

 Aussie Home Loans founder John Symond stepped down from his position as Chief Executive saying he wanted to concentrate on strategic opportunites.  The company boasted $23 billion of loan business on its books and wanted to look forward to current business opportunities.

Former Newcastle Permanent Building Society chief executive Stephen Porges has stepped into the Chief Executive role, although Mr Symond remains the company's executive chairman and retains his role as its spokesperson.


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