Powered by MOMENTUM MEDIA
the adviser logo
Lender

Aussie chairman sells stake for $164m of CBA shares

by Reporter5 minute read
John Symond

The chairman and founder of Aussie Home Loans has received 2.1 million of Commonwealth Bank shares — worth nearly $164 million — for his remaining 20 per cent stake in the brokerage.

On Friday, 25 August, the bank fully paid John Symond 2,087,605 ordinary shares — at $78.54 each — in exchange for the remaining interest he held in the brokerage.

The purchase price for the shares were determined in accordance with the terms of the deal agreed in 2012.

CBA now owns Australia’s biggest mortgage broker in its entirety, and Mr Symond is one of the largest individual stakeholders in the major bank.

Advertisement
Advertisement

Speaking at the brokerage’s bi-annual conference on the Gold Coast on Monday (28 August), Mr Symond said: “I can say, hand on heart, for the 25 and a half years of ownership of Aussie Home Loans, we’ve had a very simple mantra, and people can attest to this: we’ve never ever made a decision that wasn’t best for Aussie.”

Looking back to the first talks he had with CBA about buying Aussie, Mr Symond revealed that his initial deal with the Commonwealth Bank was triggered by the global financial crisis.

He said: “I didn’t know what was going to happen [with the banks], and although we didn’t need a partner then, it turned out to be a very big positive [change]. I remember Ralph [Norris, the former CEO of CBA] said to me: ‘The further we stay away from Aussie, the more successful you’ll be.’ And secondly, he said: ‘I want you to understand how we are paid. The bulk of our [remuneration] is based on customer satisfaction.’

“I really sat back at that and thought about it, and then I was very careful ... to make sure that the bank delivered, because we had a broker model and had to be impartial and deal with all of our terrific business partners, including all the other banks. And to CommBank’s credit, they followed through. Otherwise, I wouldn’t have agreed in 2012 to go to that next stage. And during that time, we never made a decision that wasn’t good for Aussie.”

Mr Symond reassured brokers at the conference that things would not change now that CBA owns all of Aussie.

“It won't change. I’m still staying as chairman and every decision will still be made based on what is best for Aussie.”

He said that he remains a “huge supporter of the Australian banking system”.

Noting that the Australian banks “stood strong” during the global financial crisis and didn’t need bailing out from government, Mr Symond concluded: “So, people ask me why I traded in Aussie shares for CommBank? Because I believe in the Australian banking system going forward and, obviously, having a close association with CommBank, I’m confident that they have the people, the skills, the belief, the vision, the culture that whatever crap’s happened, they’ll fix it.”

[Related: Opinion: Is CBA shorting mortgage brokers?]

john symond

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

CEO Sleepout Pepper Money

Mortgage industry raises more than $160k in CEO Sleepout

On 23 June 2022, several CEOs and directors in the mortgage and finance industry spent a night without shelter to...

READ MORE
alex whitlock

New membership program revealed for The Adviser

Members will be able to access exclusive sales and marketing strategy, business intelligence and exclusive market...

READ MORE
Hot property TA

Hot Property: The biggest property headlines from the week 27 June to...

Welcome to The Adviser’s weekly round-up of the headline stories and news that are important not only for the...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more