CBA wraps up mega $6bn share buyback

MARKET heavyweight Commonwealth Bank has ruled off a record $6bn share buyback, shifting attention to whether it will return further capital to investors.

The bank on Monday said the off-market share buyback of 67.7 million shares was completed at $88.62 a share, or a 14 per cent discount to a five-day average price of $103.04. Total demand for the buyback came in at a whopping $24bn, triggering the scale backs in shareholder applications. Three of the big four banks are undertaking a capital return bonanza, after severe Covid-19 loan losses did not eventuate and they pay out proceeds from large asset sales. CBA chairman Catherine Livingstone (pictured) said the board was pleased with the buyback’s outcome and the “exceptionally strong” investor demand.

Asked about further capital returns, CBA boss Matt Comyn said the bank was positioned for several scenarios and had capital flexibility.