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| Commonwealth Bank of Australia |
Company Overview: Commonwealth Bank of Australia (ASX: CBA)
Founded on 22nd December 1911 as the government bank, Commonwealth Bank of Australia (ASX: CBA) is an Australian multinational bank with businesses across Asia, New Zealand, the United States and the United Kingdom. It later got fully privatised in 1996.
It offers a variety of financial services, including retail, business and institutional banking, funds management, superannuation, investment, insurance and broking services. The company went public on 12th September 1991 under the ticker CBA.
Through its subsidiaries, ASB, Commonwealth Bank of Australia (ASX: CBA) primarily provides retail and commercial banking services to over 15 million people in Australia and New Zealand. The services of the bank are divided into two categories. The retail management segment includes housing loans, credit cards, personal loans, and personal overdrafts. It also applies to the vast majority of non-retail lending if the total credit exposure to a group of connected borrowers is less than $1 million.
The second risk-rating segment of the Commonwealth Bank of Australia (ASX: CBA) includes non-retail exposures such as bank and sovereign exposures. Each exposure is assigned an internal Credit Risk-Rating based on the Probability of Default (PD) and Loss Given Default (LGD) (CRR).
In its 2022 annual reports, the Commonwealth Bank of Australia (ASX: CBA) mentioned that its banking businesses continued to perform well and recorded growth in home lending and business lending. The report further added that the bank also reported growth in deposits through customer-focused execution. In fact, the volume growth boosted operating income and compensated for lower home loan margins.