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CBA to record A$169M charge in fiscal H1 from asset sales, currency fluctuation

Commonwealth Bank of Australia expects to record noncash losses of about A$169 million from asset sales and currency fluctuations in its earnings results for the fiscal first half ended Dec. 31, 2018.

The bank recorded A$74 million in losses in relation to the sale of certain assets, including Colonial First State Asset Management (Australia) Ltd. and Colonial Mutual Life Assurance Society Ltd. The amount also includes costs related to the demerger of its wealth management and mortgage broking businesses, which it now calls NewCo. Further, the bank incurred hedging and IFRS volatility losses worth A$91 million mainly due to the depreciation of the Australian dollar against the New Zealand dollar.

Further, Bankwest noncash items and treasury share valuation adjustment contributed A$1 million and A$3 million in losses, respectively.

The bank said Bankwest's results are now included in its retail banking services division following the consolidation of its Australian retail businesses.

CBA expects to report its fiscal first-half results on Feb. 6.