- Commonwealth Bank (CBA) shares have been on a turbulent journey this past week, closing almost $3 higher than one week ago
- After peaking as high as $91 in February, CBA has lost a third of its value in the past month
- The bank has put a number of measures in place to help those who are struggling financially because of COVID-19
- This includes offering one-time payments to customers who have postponed repayments for six months
- CBA will also waive any late fees and interest fees for March
- At this point it is unsure how much money CBA will miss out on but it could be in the millions
Commonwealth Bank (CBA) shares have been on a turbulent journey this past week, closing almost $3 higher than one week ago.
While this may not seem like much the banking giant has had a tough 2020, after peaking at $91.05 in February CBA shares have lost a third of their value and closed at $60.11 today.
Over the past week CBA shares have fluctuated at every close, up one day then down the next.
Why is CBA’s share price changing so much?
To help those financially struggling with COVID-19, CBA has put a number of measures in place to make life that little bit easier in this difficult time.
On April 1, CBA announced that it received $865 million for the divestment of its life insurance business to AIA Group.
This is in addition to the $740 million already received during the first half of the 2020 financial year.
CBA now has $1.6 billion to help boost its balance sheet after the company announced it would be giving one-time payments to all customers who have been affected by COVID-19 and have had to defer their payments for six months.
This will vary from each customer and their specific loans, so Australia’s largest bank could be missing out on million of dollars.
The bank will also waive any late fees and interest fees for March to any customers who were unable to make their minimum credit card repayment.
Changes have been made to home loan repayments which will improve cash flows by approximately $300 million for Australian households each month – just a small portion of what CBA will be missing out on.
With COVID-19 still present and only in the early stages as some have said, it is unsure how much money CBA will lose.
Any of these reasons could be why Australia’s largest retail bank’s share price has changed so much in the past few months.
However, one question that remains to be answered is will the bank rise up once again?