CBA shares bounce after settling long-running class action
CBA shares rose after announcing a $249 million in‑principle settlement of a long‑running class action, already covered by prior provisions.Summary
Commonwealth Bank of Australia (CBA) announced an in‑principle agreement to settle a class action involving Colonial First State Investments and Avanteos Investments for $249 million, relating to cash and deposit products sold between November 2008 and September 2021. The bank, along with the other defendants, denies liability and no admission of wrongdoing has been made; the settlement still requires Federal Court approval. CBA noted the amount is already covered by a provision from an earlier period, so it will not affect current earnings, which helped the share price rise 0.92% to $158.47 on the announcement day. The news follows a strong FY26 result, with cash net profit after tax up 7% to $10.98 billion and a final dividend lifted to $2.70 per share, giving a full‑year payout of $5.05. Despite the gain, CBA shares remain about 8% lower over the past month and trade near their 52‑week low, with a P/E ratio around 24.
(Source：The Motley Fool Australia)