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Commonwealth Bank of Australia
Type Public (ASX:CBA)
Founded 1911 as a government bank
1991 as a public company
Headquarters Flag of Australia Sydney, Australia
Area served Flag of Australia Australia
Flag of New Zealand New Zealand
Flag of Fiji Fiji
Flag of Indonesia Indonesia
Key people Dr John Schubert, Chairman
Ralph Norris, CEO and Managing Director
Industry Finance and Insurance
Products Banking, financial and related services
Revenue ▲ $28. Year 1911 ( MCMXI) was a Common year starting on Sunday (link will display the full calendar of the Gregorian calendar (or a Common year Year 1991 ( MCMXCI) was a Common year starting on Tuesday (link will display full calendar of the Gregorian Calendar. Sydney (ˈsɪdniː is the most populous city in Australia, with a Metropolitan area population of approximately 4 For a topic outline on this subject see List of basic Australia topics. For a topic outline on this subject see List of basic Australia topics. New Zealand is an Island country in the south-western Pacific Ocean comprising two main landmasses (the North Island and the South Island Fiji (Matanitu ko Viti फ़िजी officially the Republic of the Fiji Islands (Matanitu Tu-Vaka-i-koya ko Viti फ़िजी द्वीप समूह गणराज्य The Republic of Indonesia ( (Republik Indonesia is a Country in Southeast Asia. Ralph James Norris, DCNZM is the CEO of the Commonwealth Bank of Australia. A chief executive officer ( CEO) or chief executive is typically the highest-ranking corporate officer ( executive) or administrator Managing director is the term used for the Chief executive of many limited companies in the United Kingdom, Commonwealth and some other English For other uses of this term see Industry (disambiguation An industry (from Latin industrius, "diligent industrious" Financial services refer to services provided by the finance industry. In Marketing, a product is anything that can be offered to a Market that might satisfy a want or need In business revenue or revenues is Income that a company receives from its normal business activities usually from the sale of goods and services 564 billion AUD (2006)
Profit ▲ $3. The Australian dollar ( sign: $; code: AUD) is the Currency of the Commonwealth of Australia, including Christmas Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. Net income is equal to the Income that a firm has after subtracting costs and Expenses from the total Revenue. 928 billion AUD (2006)
Employees 38,000 (Full-time equivalent)
Subsidiaries ASB Bank, Colonial First State Investments Limited, Sovereign Limited, Commonwealth Securities and CommInsure
Website www.commbank.com.au

The Commonwealth Bank of Australia (ASX:CBA) is the second largest bank in Australia. The Australian dollar ( sign: $; code: AUD) is the Currency of the Commonwealth of Australia, including Christmas Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. Employment is a Contract between two parties, one being the employer and the other being the employee. A subsidiary, in business matters is an entity that is controlled by a bigger and more powerful entity ASB is one of New Zealand 's largest banks with branches throughout the country Sovereign is a Financial Services provider of life and health insurance home loans investment and superannuation products in New Zealand and is part of the ASB Group of companies Commonwealth Securities, also known as "CommSec" or "ComSec" is Australia's largest discount Stockbroking firm operated by the Commonwealth Bank A website (alternatively web site or Web site, a back-construction from the Proper noun World Wide Web) is a collection of Web pages The Australian Securities Exchange ( ASX) is the primary Stock exchange in Australia. For a topic outline on this subject see List of basic Australia topics. With businesses in New Zealand, Asia and the United Kingdom. Commonwealth Bank provides a variety of financial services including retail, business and institutional banking, funds management, superannuation, insurance, investment and broking services. Commonly referred to as the Commonwealth Bank (or Commbank), The Commonwealth Bank is now the second largest Australian listed company on the Australian Securities Exchange as of January 2008 with brands including Colonial First State Investments Limited, ASB Bank (New Zealand), Commonwealth Securities Limited (CommSec)and Commonwealth Insurance Limited (CommInsure). The Australian Securities Exchange ( ASX) is the primary Stock exchange in Australia. ASB is one of New Zealand 's largest banks with branches throughout the country On 7 December 2007 the bank won its skirmish with ANZ over bragging rights to the title of "Australia's most convenient bank".

Founded in 1911 by the Australian government, the Commonwealth is second only to National Australia Bank (NAB), and is one of the 'big four' Australian banks, the third and fourth being ANZ and Westpac. National Australia Bank (or NAB) is the second largest financial institution by market capitalisation in Australia after Commonwealth Bank. This article is about the bank For the defunct airline see Western Pacific Airlines. The bank was listed on the Australian Stock Exchange in 1991 and was fully privatised in 1996.

Contents

History

Old Commonwealth Bank of Australia savings passbook, issued 1977.
Old Commonwealth Bank of Australia savings passbook, issued 1977.

Foundation and early history (1911-1941)

The Commonwealth Bank of Australia was founded by the Commonwealth Bank Act in 1911, introduced by the Andrew Fisher Labor Government, which favored bank nationalization. An Act of Parliament is a Law enacted as Primary legislation by a national or sub-national Parliament. Year 1911 ( MCMXI) was a Common year starting on Sunday (link will display the full calendar of the Gregorian calendar (or a Common year Andrew Fisher (29 August 1862 – 22 October 1928 was an Australian Politician and the fifth Prime Minister of Australia. Nationalization, also spelled nationalisation, is the act of taking an industry or assets into the Public ownership of a national government In a rare move for the time, the bank was to have both savings and general bank business. The bank was also the first bank in Australia to receive a Federal Government guarantee. The bank's earliest and most strenuous proponent was the flamboyant American-Australian Labor politician, King O'Malley, and its first Governor was Sir Denison Miller. King O'Malley (July 1858 – 20 December 1953) was an Australian politician Sir Denison Samuel King Miller KCMG, ( 8 March 1860 – 6 June 1923) was the first governor of the Commonwealth Bank of

The bank opened its first branch in Melbourne on July 15, 1912. Melbourne ( is the second most populous city in Australia, with a Metropolitan area population of approximately 3 Events 1099 - First Crusade: Christian soldiers take the Church of the Holy Sepulchre in Jerusalem after the final Year 1912 ( MCMXII) was a Leap year starting on Monday (link will display the full calendar of the Gregorian calendar (or a Leap year starting In an agreement with Australia Post that exists to this day, the bank also traded through post office agencies. | industry = Post | products = Postal service, Office supplies, Greeting cards | revenue = $4 In 1912 it merged with the state savings bank in Tasmania, and by 1913 it had branches in all six states. Year 1912 ( MCMXII) was a Leap year starting on Monday (link will display the full calendar of the Gregorian calendar (or a Leap year starting Tasmania is an Australian island and state of the same name It is located south of the eastern side of the Continent, being separated from it by Bass Year 1913 ( MCMXIII) was a Common year starting on Wednesday (link will display the full calendar of the Gregorian calendar (or a Common

In 1916 the bank moved its head office to Sydney. Year 1916 ( MCMXVI) was a Leap year starting on Saturday (link will display the full calendar of the Gregorian calendar (or a Leap year Sydney (ˈsɪdniː is the most populous city in Australia, with a Metropolitan area population of approximately 4 It also followed the Australian army into New Guinea, where it opened a branch in Rabaul and agencies elsewhere. New Guinea, located just north of Australia, is the world's second largest island, having become separated from the Australian mainland when the area now known Rabaul is a township in East New Britain province Papua New Guinea.

In 1920, the bank took over from the Department of the Treasury the responsibility for the issue of Australian bank notes, the beginning of its acquisition of central bank powers. Year 1920 ( MCMXX) was a Leap year starting on Thursday (link will display 1920 of the Gregorian calendar A central bank, reserve bank, or monetary authority is the entity responsible for the Monetary policy of a country or of a group of member states [1]

In 1920, the Commonwealth Bank merged with the state savings bank in Queensland. Year 1920 ( MCMXX) was a Leap year starting on Thursday (link will display 1920 of the Gregorian calendar Queensland is a state of Australia, occupying the north-eastern corner of the mainland continent

In 1931 the government transferred to the bank the savings bank business of the Government Savings Bank of New South Wales (est. Year 1931 ( MCMXXXI) was a Common year starting on Thursday (link will display full 1931 calendar of the Gregorian calendar. 1871), and the current account and fixed deposit business of the Rural Bank Department. Year 1871 ( MDCCCLXXI) was a Common year starting on Sunday (link will display the full calendar of the Gregorian calendar (or a Common The bank also acquired the State Savings Bank of Western Australia (est. 1863). Year 1863 ( MDCCCLXIII) was a Common year starting on Thursday (link will display the full calendar of the Gregorian calendar (or a Common

Central Bank (1920-1960)

The bank's role in central banking expanded gradually after 1920. In 1931, the bank board came into conflict with the Labor government of James Scullin. James Henry Scullin (18 September 1876 &ndash 28 January 1953 Australian Labor Politician and ninth Prime Minister of Australia. The bank's chairman Robert Gibson refused to expand credit in response to the Great Depression (as had been proposed by Treasurer Edward Theodore) unless the government cut pensions, which Scullin refused to do. Robert Gibson may refer to Robert L Gibson (born 1946 American naval captain and NASA astronaut Robert Gibson (pitcher (1869-1949 Edward Granville Theodore ( 29 December, 1884 &ndash 9 February, 1950,) Australian politician was born in Adelaide, Conflict surrounding this issue led to the fall of the government, and to demands from Labor for reform of the bank and more direct government control over monetary policy.

In 1942, the Commonwealth Banking Corporation (CBC) suspended its operations in Papua New Guinea as the Japanese Army captured many of the towns in which it operated, and bombed Port Moresby. Papua New Guinea (or ˈpæpjuːə in Tok Pisin: Papua Niugini) officially the Independent State of Papua New Guinea, is a country in Oceania ||-||-||-||-||-||} Port Moresby (ˌpɔrt ˈmɔrzbi or Pot Mosbi in Tok Pisin, population 255000 (2000 is the Capital and largest city of Papua The bank resumed operations later, possibly in 1944. Year 1944 ( MCMXLIV) was a Leap year starting on Saturday (link will display full calendar of the Gregorian calendar.

The Commonwealth Bank received almost all central bank powers in emergency legislation passed during World War II and at the end of the war it used this power to begin a dramatic expansion of the economy. World War II, or the Second World War, (often abbreviated WWII) was a global military conflict which involved a majority of the world's nations, including This was also the aim of the Government at the time, which colossally expanded immigration programmes. To respond to this, the bank established a Migrant Information Service. Predictably, the bank also expanded during this period, in just five years it opened hundreds of branches throughout Australia and in 1951 the bank established a branch in the Solomon Islands. Year 1951 ( MCMLI) was a Common year starting on Monday. Events of 1951 January The Solomon Islands is a country in Melanesia, east of Papua New Guinea, consisting of nearly one thousand islands

In 1958 and 1959, there was a controversy concerning the dual function of the bank as the central bank on the one hand and a general bank on the other. Year 1958 ( MCMLVIII) was a Common year starting on Wednesday (link will display full calendar of the Gregorian calendar. The year 1959 ( MCMLIX) was a Common year starting on Thursday (link will display full calendar of the Gregorian calendar. As a result of this, the bank was split, giving the reserve bank function to the Reserve Bank of Australia and the general bank function to the Commonwealth Banking Corporation. The Reserve Bank of Australia came into being on 14 January 1960 to operate as Australia 's Central bank and banknote issuing authority

From 1958 to 1976 the Commonwealth Bank operated savings bank agencies in the New Hebrides. Hebrides (disambiguation New Hebrides was the colonial name for an Island group in the South Pacific that now forms the nation of Vanuatu.

Diversification (1960-1983)

A new Commonwealth Development Bank was established in 1960 and during the 1970s the bank diversified its business into areas like insurance and travel. Year 1960 ( MCMLX) was a Leap year starting on Friday (link will display full calendar of the Gregorian calendar. This article is about the Decade 1970-1979 For the Year 1970 see 1970. It established a finance company, the Commonwealth Bank Finance Corporation in 1974. Year 1974 ( MCMLXXIV) was a Common year starting on Tuesday (link will display full calendar of the 1974 Gregorian calendar. The bank also became more heavily involved in foreign currency trading and international banking in general.

The bank actively supported the introduction of decimal currency in the years leading up to 1966 and, like most banks, it gradually converted its paper records onto a new computer-based system. In the management of currencies, decimalisation (or decimalization) is the process of converting from traditional denominations to a " Decimal " Year 1966 ( MCMLXVI) was a Common year starting on Saturday (link will display full calendar of the 1966 Gregorian calendar. The bank created the first credit card in Australia in 1974 when it established Bankcard. A credit card is part of a system of Payments named after the small Plastic card issued to users of the system Year 1974 ( MCMLXXIV) was a Common year starting on Tuesday (link will display full calendar of the 1974 Gregorian calendar. In later years the bank began offering Mastercards (1984) and Visa (1993) cards as well. MasterCard Worldwide ( is a multinational corporation based in Purchase, New York, USA. Year 1984 ( MCMLXXXIV) was a Leap year starting on Sunday (link displays the 1984 Gregorian calendar) Year 1993 ( MCMXCIII) was a Common year starting on Friday (link will display full 1993 Gregorian calendar)

In 1974, as Papua New Guinea approached independence, the bank formally handed over its PNG operations to the newly created and government-owned Papua New Guinea Banking Corporation (PNGBC). Papua New Guinea (or ˈpæpjuːə in Tok Pisin: Papua Niugini) officially the Independent State of Papua New Guinea, is a country in Oceania The bank retained a restricted branch in Port Moresby that it finally closed in 1982.

In 1981 the bank transferred its operations in the Solomon Islands to the National Bank of Solomon Islands, which operated as a joint venture (51-49, Commonwealth and Government of the Solomon Islands). The Solomon Islands is a country in Melanesia, east of Papua New Guinea, consisting of nearly one thousand islands National Bank of Solomon Islands (NBSI has the largest network of offices (eight branches and eight agencies in the Islands

Deregulation(1983-1991)

Old 1980s logo
Old 1980s logo

In 1989 the bank acquired 75% of ASB Bank in New Zealand. ASB is one of New Zealand 's largest banks with branches throughout the country New Zealand is an Island country in the south-western Pacific Ocean comprising two main landmasses (the North Island and the South Island

In 1991 the bank acquired the failing Victorian Government-owned State Bank of Victoria (est. The State Bank of Victoria was a Bank that existed from 1842 until 1991 when it was taken over by the Commonwealth Bank. 1842).

Privatisation and the Colonial merger (1990-2000)

Between 1991 and 1996 the Australian government fully privatised Commonwealth Bank. It is a public company, but one of the few such companies in Australia whose official name does not end in 'Limited'.

In 1994 Commonwealth sold its shares in National Bank of Solomon Islands to Bank of Hawaii. National Bank of Solomon Islands (NBSI has the largest network of offices (eight branches and eight agencies in the Islands Bank of Hawaii, a subsidiary of Bank of Hawaii Corporation ( is a regional commercial Bank headquartered in Honolulu, Hawaii.

In 1994, Commonwealth took a 50% share in PT Bank International Indonesia.

On 10 March 2000, the Commonwealth Bank and Colonial First State Investments Limited announced their intention to merge, with seven Commonwealth Bank shares being offered for twenty Colonial Shares. The merger received final approval from the Supreme Court of Victoria on 31 May 2000 and was completed on 13 June 2000. This brought into the fold Colonial’s stake in Colonial National Bank, the former National Bank of Fiji. The full name of the bank is National Bank of Fiji trading as Colonial National Bank. The full name of the bank is National Bank of Fiji trading as Colonial National Bank. The bank also acquired the remaining 25% of ASB Bank. ASB is one of New Zealand 's largest banks with branches throughout the country

Banking opportunities in Asia saw the Bank in 2000 acquire full ownership of PT Bank International Indonesia and rename it (PT Bank Commonwealth). This bank now has over 16 branches and has opened several FX shops to cater to Commonwealth Bank clients who are tourists in Bali. Bali is an Indonesian Island located at, the westernmost of the Lesser Sunda Islands, lying between Java to the west and Lombok to

The bank today (2001+)

Commonwealth Bank was awarded Bank of the Decade in November 1999 and also named Best Bank at the Australian Banking & Finance Awards for the years 1996, 2000 and 2002. Australian Banking & Finance is an Australian magazine for the nations Financial services industry.

In 2005, the bank established strategic co-operation agreements with two Chinese banks, Jinan City Commercial Bank and Hangzhou City Commercial Bank; it took an 11% stake in Jinan City, and a 19. 9% stake in Hangzhuo. Commonwealth also established a representative office in Bangalore, India. Bangalore ( officially Bengaluru ( Kannada: ಬೆಂಗಳೂರು) is the capital of the Indian state of Karnataka. India, officially the Republic of India (भारत गणराज्य inc-Latn Bhārat Gaṇarājya; see also other Indian languages) is a country

On 27 January 2006 the bank acquired the remaining 49% stake in Colonial National Bank (Fiji)

At the beginning of 2008, Commonwealth Bank opened a branch in Ho Chi Minh City (Saigon).

Bank structure

Retail Banking Services

The role of this division is to focus on meeting the financial needs of personal and small business customers with accessible and affordable banking

Premium Business Services

This division provides wealth and relationship management for the Bank's premium clients. Commonwealth Securities – one of Australia’s leading online broking services is part of this division

Wealth Management

Wealth Management brings together the Groups funds management platform, master funds, superannuation, insurance and financial advice business support. Commonwealth Securities, also known as "CommSec" or "ComSec" is Australia's largest discount Stockbroking firm operated by the Commonwealth Bank Colonial First State, Colonial First State Global Asset Management and CommInsure all form part of Wealth Management

International Financial Services

The Bank places emphasis on offshore growth opportunities and provides banking, insurance and investment services in these overseas locations

International operations/activity

The Commonwealth Bank's international presence is in both developed and developing countries. Some of these include:

Products and services

The Commonwealth Bank is Australia's largest retail bank and offers customers a range of products and services, including loans, credit cards, transaction and savings accounts. It has a wide presence in Australia with the largest branch and ATM network. It also offers services to people planning to move to Australia.

The Bank's service of business customers, ranging from small business owners to large institutional clients, is diverse and draws upon the products and services offered by all divisions of the Commonwealth Bank group.

Industry awards and recognition

The Commonwealth Bank is consistently the recipient of many highly regarded and well recognised awards. These include:

Environment

Environmental concerns

In 2002, the Commonwealth Bank came under fire by the Wilderness Society for its 16% stake in the controversial woodchipping company Gunns Limited, which is involved in the logging of old growth forests. See also 2002 (disambiguation Year 2002 ( MMII) was a Common year starting on Tuesday of the Gregorian calendar. The Wilderness Society (TWS is an Australian Not-for-profit non-governmental environmental advocacy whose mission is protecting promoting and restoring Wilderness Woodchipping is the act and industry of chipping wood for pulp or processed wood products Gunns Limited ( is a major Forestry enterprise located in Tasmania, Australia. The Commonwealth Bank has retorted that it does not itself hold any direct investment in Gunns Limited, but instead has invested in Gunns through its funds management businesses, on its behalf. [2] The Wilderness Society claims the Commonwealth Bank is the second biggest shareholder in Gunns, and at a Gunns shareholder general meeting in August 2003, the Commonwealth Bank has used its shareholder voting rights to vote against a resolution which would have stopped the company from destroying old growth forests[3].

Commonwealth also owns an 8. 2% share in the Hazelwood power station[4], the most carbon intensive power station[5] in Australia and the industrialised world. Hazelwood Power Station, in the Latrobe Valley, Victoria, is a brown coal fueled base-load power station built between 1964 and

Environmental initiatives

The Commonwealth Bank has demonstrated its commitment to the environment through its support of various initiatives.

Community support and sponsorships

Sport sponsorships

Australian of the Year Award

The Commonwealth Bank is the major sponsor of the Australian of the Year Awards and has supported the program since 1979. The Australian of the Year Awards commenced in 1960. From nominations received Australia Day Committees in each state and territory select several finalists The Awards recognise the achievements of Australians and the contributions they have made to their community. There are four Award categories - Australian of the Year, Senior Australian of the Year (60 years and over), Young Australian of the Year (16 to 25 years) and Australia’s Local Hero.

The Commonwealth Bank Foundation

This foundation encourages developments in education, in particular the financial literacy skills of young Australians. It aims to create awareness, skill and understanding of the benefits of a more financially literate community. One of the initiatives is the Bank’s Student Banking Program introduced in 1931 to teach young people the basic skills of money management and encouraging them to save.

Community partnerships

The Commonwealth Bank has established partnerships with many community organisations providing education and greater access to services for all Australians. This support is spread across metropolitan, regional and remote Australia, in such fields as:

By combining a commitment these varied fields, the partnerships have achieved positive, sustainable outcomes for the Australian community.

Staff Community Fund

The Commonwealth Bank Staff Community Fund was established in 1917 when a group of Bank employees got together to fund the provision of children's cots during World War One. This continues today through the Staff Community Fund. The fund now has over 3,000 members (current and retired) who contribute fortnightly. Money is also raised through special fundraising days such as National Smile Day and one-off donations. The fund has donated over $5 million to various charities over the past ten years. The Bank meets the Fund’s administration costs, so that every dollar raised goes directly to the cause.

As well as raising money Bank staff volunteer their time for the charities they support. These include:

Subsidiaries

Australia

New Zealand

Asia Pacific

See also

References

  1. ^ Commonwealth Bank - History - A brief history of the Commonwealth Bank [1]
  2. ^ Commonwealth Bank position on Gunns Limited, 9 October 2002. Commonwealth Securities, also known as "CommSec" or "ComSec" is Australia's largest discount Stockbroking firm operated by the Commonwealth Bank The Commonwealth Bank of Australia ( is the largest bank in Australia. ASB is one of New Zealand 's largest banks with branches throughout the country Sovereign is a Financial Services provider of life and health insurance home loans investment and superannuation products in New Zealand and is part of the ASB Group of companies The full name of the bank is National Bank of Fiji trading as Colonial National Bank. The Reserve Bank of Australia came into being on 14 January 1960 to operate as Australia 's Central bank and banknote issuing authority The State Bank of Victoria was a Bank that existed from 1842 until 1991 when it was taken over by the Commonwealth Bank. The State Bank of New South Wales was a Bank that was owned by the Government of New South Wales. The Australian Cricket Academy, originally located at Henley Beach in Adelaide, was formed in 1987 as a joint initiative of the Australian Institute of Sport The Commonwealth Bank Trophy was the elite national competition in Australian Netball from 1997 up until 2008 The Commonwealth Bank Series, the current naming rights sponsor of the Australian Tri-Series refers to the international Cricket tournament held since 1979 between This is a list of companies from Australia. A-F Allure Marine Limited ABB Grain Limited Accessed: 30 October 2006. [2]
  3. ^ The Wilderness Society: National Day of Action against the Commonwealth Bank. 29 Oct 2003. Accessed: 30 October 2006. [3]
  4. ^ Environment Australia: Corporate profile of Hazelwood power station. Accessed: 30 October 2006. [4]
  5. ^ WWF: Hazelwood tops international list of dirty power stations, 13 Jul 2005. [5]

External links

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