Shares of the "Big Four" banks climb after inquiry report, NAB criticism stirs
Shares of Australia’s big four banks surge on Tuesday, in the aftershock of the royal banking commission final report.
Shares of NAB, Commonwealth Bank of Australia, Westpac and ANZ have surged on Tuesday, despite being mentioned in Monday's final royal inquiry banking report.
At time of writing, AMP shares were up almost 8% on Tuesday, Westpac shares were up 4.3%, and Commonwealth Bank of Australia and ANZ shares were up 3.6% and 3.4%. Despite being singled out in the report, NAB shares were also up 2.36%.
IG market analyst Kyle Rodda says, the climb in share price was expected after the report’s findings, as commissioner Kenneth Hayne’s final report had a lighter touch than expected.
The much-anticipated release of the Royal Commission Final Report was not as harsh on the big banks as many analysts expected.
NAB's CEO cancels leave after inquiry report
The report on Monday had called out NAB’s CEO Andrew Thorburn and Chairman Ken Henry, criticising them of being unwilling to accept responsibility for past wrongdoings.
On Tuesday, NAB said Thorburn had cancelled his two-month leave after the release of the year-long inquiry.
‘Having heard from both the CEO, Mr. Thorburn, and the Chair, Dr. Henry, I am not as confident as I would wish to be that the lessons of the past have been learned,’ wrote, Kenneth Hayne, in his final report.
Thorburn said he was disappointed that the commissioner had this view.
‘At NAB we are determined to change and accept that we will ultimately be measured by the actions we take,’ Thorburn said.
NAB responded to the report in a statement saying, ‘NAB will now review the report, which contains 76 recommendations, and the government’s response to fully understand the implications for the NAB Group.’
The recommendations from the inquiry heard misconduct involved charging fees to the accounts of dead people and cash bribes being paid over the counter. Many anticipate Thorburn will resign from his position following the shocking revelations.
NAB is due to report its first-quarter results on Friday.
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