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CBA wants the price it paid for Bankwest reviewed after the second tier lender reported a multi-million dollar loss and significant rise in expenses to cover bad debt.
CBA paid $2.1 billion for Bankwest back in December last year but has activated a clause in the sale agreement by which it may have the price independently reassessed.
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Bankwest yesterday reported a $139 million loss for the year ending December 2008, compared with a profit of $204 million for the year before.
It also revealed its charge for impairment expenses to cover bad debt had risen to $825 million, compared to the $87.8 million for the year before.
Despite the price review CBA CEO Ralph Norris says the bank remains confident in the value Bankwest will bring to CBA.
“We have identified many opportunities to improve the performance of Bankwest and we remain confident that this acquisition will create significant value for the group.”
