Big four banks see share price rise following Royal Commission findings

Big four banks see share price rise following Royal Commission findings
Big four banks see share price rise following Royal Commission findings

Shares at all of the big four banks have jumped in the first few hours of share trading this morning, which also saw the NAB boss Andrew Thorburn decide to return from his proposed extended leave.

The share price rise on the ASX follows the not too damaging Royal Commission final report released yesterday.

It should be noted however the share prices across the banks took a major hit in the build up to the Royal Commission release.

Each of the banks recorded declines of between 3% to 5%.

However, following the announcement of the Royal Commission findings, shares jumped back higher.

Westpac shares rose the highest, up 5.8% in early morning trading to $26.54.

ANZ shares were up 5% to $26.59 and the CBA share price up 4.2% to $73.40.

The NAB rise was more modest at 3.7%, mainly due to the specific criticism directed at NAB CEO Andrew Thorburn and chair Dr Ken Henry by banking royal commissioner Kenneth Hayne.

The NAB shares now sit at $25.01.

Hayne said that having heard from both Thorburn and Henry, he said he is "not as confident as I would wish to be that the lessons of the past have been learned.

"More particularly, I was not persuaded that NAB is willing to accept the necessary responsibility for deciding, for itself, what is the right thing to do, and then having its staff act accordingly."

NAB's Andrew Thorburn released a statement this morning, in response to Hayne's criticism.

"As the CEO, this is very hard to read, and does not reflect who I am or how I am leading, nor the change that is occurring in our bank," Thorburn's statement read.

“While we have made mistakes, I believe there is a lot of evidence that we are making sustainable and serious change to once again regain the trust of all of our customers.”

Thorburn, who has been on long service leave, said he is cancelling the remainder and returning to the NAB.

AMP were another significant mover in the share market.

Their share price jumped 8.6% to $2.44.

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

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