The CBA share price is up again on its plan to boost profits by $2 billion

Commonwealth Bank of Australia (ASX: CBA) is reportedly considering a major restructure.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's been the most heavily traded stock by both institutional and 'mum and dad" investors on the S&P/ ASX200 today, with 1.5 million Commonwealth Bank of Australia (ASX: CBA) shares worth $108 million changing hands.

The stock is also up 1% today following on from a near 2% gain on Friday on the back of multiple news reports that the bank's new chief executive Matt Comyn is looking to cut up to $2 billion of costs from the bank by making around 1 in 4 or 10,000 staff redundant.

This certainly seems a radical plan given it's likely to badly hurt morale at what is a services and largely customer-facing business, while it will also not be popular with politicians keen to protect jobs.

However, it shows how determined the new CEO seems to be to protect the bank's dividends probably under pressure from institutional investors.

The plan does seem extreme and it should be noted it is not much more than a rumour at the moment, although investors clearly like the idea of eventually taking $2 billion in costs out of a business that generated $4.6 billion in profits over its most recent half year.

Elsewhere other banks such as Westpac Banking Corp (ASX: WBC) and Australia & New Zealand Banking Group (ASX: ANZ) also edged between 0.5% and 0.9% higher.

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Broker Notes

Why are Platinum shares rocketing 13% today?

This fund manager is getting a lot of love from investors today. Let's find out why.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Evolution Mining, Orthocell, Platinum, and Turaco shares are charging higher

These shares are having a better day that most on Thursday.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why CSL, Imricor, Jumbo, and Netwealth shares are falling today

These shares are under pressure on Thursday. But why?

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Broker Notes

Morgans says these ASX stocks can rise 30% to ~50%

Let's see which shares could generate big returns for investors.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Broker Notes

Does Macquarie rate Fortescue shares a buy, hold or sell?

The broker has given its verdict on this popular mining stock.

Read more »

group of traders cheering at stock market
Share Market News

We could see the ASX 200 at 9,000 points by 2026. Here's why.

I wouldn't be shocked to see more records this year...

Read more »

Business woman watching stocks and trends while thinking
Share Market News

5 things to watch on the ASX 200 on Thursday

A better session awaits Aussie investors on Thursday.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing hump day session for the ASX today.

Read more »