Commonwealth, Australia's biggest bank, announced plans today to spin off its wealth management and mortgage-broking arms as it looks to streamline operations and focus on core businesses.
The troubled lender -- the country's largest company -- is also considering selling its general insurance business.
Chief executive Matt Comyn said it would unlock value for shareholders.
"Today's announcement is another step in our stated priority to become a simpler, better bank and has followed a thorough review of the group's businesses and its optimal organisational structure to drive growth and shareholder value for all businesses," he said.
"It also responds to continuing shifts in the external environment and community expectations, and addresses the concerns regarding banks owning wealth management businesses."
"With innovation and disruption in wealth management increasingly favouring specialist companies, they will benefit from independence and the capacity to focus on new growth options without the constraints of being part of a large banking group."
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