19 October 2017
visit www.response.ncr.com

CBA cashes in Visa windfall to pay down software assets

19 December 2016  |  9234 views  |  0 cba branc

Commonwealth Bank of Australia is selling its remaining stake in Visa Inc for $439 million and using the windfall to write off $275 million in software spending on digital and direct banking channels.

CBA's sale of its remaining 49% stake in Visa results in a $278m after-tax gain, effectively wiping out a $275 million above-the-line hit in its forthcoming 2016 results statement through a "one-off acceleration of amortisation on certain capitalised software assets".

CBA currently carries $2.2 billion of capitalised software assets on its books.

The bank says the decision to realise the software spend reflects "the rapidly changing technology environment".

It follows in the footsteps of Australia's other big four banks, which have collectively written down billions of dollars in capitalised software assets, effectively removing an ongoing red-line expense on out-of-date technology.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

CBA provides Alipay with bridgehead to Australia

CBA provides Alipay with bridgehead to Australia

31 October 2016  |  5115 views  |  0 comments | 6 tweets | 7 linkedin
Branches set for long life - CBA

Branches set for long life - CBA

02 June 2016  |  7109 views  |  0 comments | 5 tweets | 12 linkedin
CBA profits underpinned by technology investment

CBA profits underpinned by technology investment

12 August 2015  |  4967 views  |  0 comments | 5 tweets | 8 linkedin
NAB writes off $297m in under-performing software

NAB writes off $297m in under-performing software

09 October 2014  |  5867 views  |  0 comments | 4 tweets | 8 linkedin
CBA reaps the benefits of $1.1 billion technology upgrade programme

CBA reaps the benefits of $1.1 billion technology upgrade programme

15 August 2012  |  8981 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.fivedegrees.nl

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15562 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8752 views comments | 16 tweets | 22 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
8401 views 0 | 8 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
7848 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
6994 views comments | 9 tweets | 17 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job