Commonwealth Bank increases investment in
Aussie Home Loans
Tuesday, 18 December 2012
The Commonwealth Bank today announced that it has reached an agreement with John Symond to increase its investment in Aussie Home Loans (Aussie) initially from 33 per cent to 80 per cent, with the right to subsequently move to 100 per cent ownership.
John Symond will remain as Executive Chairman and Aussie will continue to operate as a standalone mortgage broker and financial services provider.
Commonwealth Bank Group Executive Group Strategic Development, Rob Jesudason said, “We recognise the strength and reputation of the Aussie brand and name in the Australian mortgage market and also the importance of broker distribution of home loans and other financial products. We are delighted to increase our investment in Aussie and continue the relationship between the Commonwealth Bank Group and Aussie. We are committed to providing innovative and competitive services to our customers.”
“For Aussie, it will be business as usual as it continues to provide a full range of services to brokers and lenders in the way it always has.” he added.
The acquisition of Aussie is dependent on the Commonwealth Bank obtaining informal clearance from the Australian Competition and Consumer Commission.
The financial terms of the acquisition are confidential, however the transaction is not material to the Commonwealth Bank.
For further information please call:
Head of Communications, Group Corporate Affairs
Commonwealth Bank of Australia
(02) 9117 7047
About Aussie: Aussie was founded in 1992 by John Symond AM, who was widely credited with bringing competition to the Australian home lending industry. The company was unique in its approach to home loans, offering 24 hours a day service and loans far cheaper than those offered by banks. In 1994 Aussie introduced the securitisation of home loans, allowing it to offer loans upwards of 3% cheaper than its competitors. The company rapidly grew as consumers became aware of its products and the competition heated up as Aussie grew its market share. In 2008 CBA acquired a 33% share of Aussie. As at end September 2012, Aussie had a loans portfolio of almost $44.9 billion. In 2012 Aussie acquired Mortgage aggregator nMB, which brought its total portfolio value to more than $53bn.