Is executive pay behind CBA’s capital raising?

After announcing the largest-ever profit by an Australian bank, CBA (ASX:CBA), like ANZ and NAB before it, yesterday also notified investors of a rights issue of $5bn.This unusual. A company that makes $9.1bn doesn’t normally hit investors up for another $5bn in a capital raising. But this is the Australian banking sector, where things are never quite what they seem.Companies usually announce capital raisings when they’re in financial trouble or are on the cusp of a substantial takeover.Australia’s banks, all of which are announcing near-record profits and large capital raisings, face neither of these things. What’s going on?The simple explanation...

After announcing the largest-ever profit by an Australian bank, CBA (ASX:CBA), like ANZ and NAB before it, yesterday also notified investors of a rights issue of $5bn.

This unusual. A company that makes $9.1bn doesn’t normally hit investors up for another $5bn in a capital raising. But this is the Australian banking sector, where things are never quite what they seem.

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