Commonwealth Bank’s sale of its 99 per cent holding in PT Bank Commonwealth in Indonesia has resulted in a total non-cash loss of $298 million (post-tax).

This includes a $133 million impairment loss on remeasurement of PTBC’s net assets to fair value in 1H2024, an additional $100 million loss recognised on completion of the sale in 2H2024, and $65 million of separation costs of which $53 million was provided for in the bank’s first half. 

“As PTBC does not constitute a major line of the group’s business, the financial results of PTBC were treated as continuing operations during the period” CBA said yesterday.

Also during the half-year ended June 2024, the bank has recognised $89 million of provisions (pre-tax) relating to costs associated with changes to the operating model of Bankwest. 

“These include the transitioning of Bankwest to a digital bank, the transition of Bankwest business banking to CBA, and changes in the group’s operating model.”

To present “a transparent view of the business’ performance, these items will be excluded from underlying operating expenses” when CBA announce its full year results on Wednesday 14 August.