Australia's largest banks, including Commonwealth Bank (CBA) and Macquarie Group Ltd., have struck a deal to inject A$50 million ($33 million) into cash-transportation firm Linfox Armaguard Pty Ltd. The funding will help Armaguard stay afloat for a year, starting from July 1. The proposal will be submitted to the consumer competition regulator for approval. The uncertain future of Armaguard, owned by trucking billionaire Lindsay Fox, has raised concerns about the potential loss of access to notes and coins, which currently account for about 7% of payments in Australia. The Australian Banking Association and Armaguard will also engage in discussions about the future model for the cash-in-transit industry beyond 2024-25 [d80e04f1].
In addition to supporting Armaguard, Commonwealth Bank CEO Matt Comyn recently visited the mid-north coast region of New South Wales (NSW) and expressed optimism about its long-term growth prospects. Comyn highlighted the region's strong economy, driven by growth in tourism, healthcare, specialized manufacturing, education, and inter-state migration. The mid-north coast region currently supports 330,000 people and 120,000 jobs, with an annual GDP of over $22 billion. Comyn also praised Birdon, a major industrial company in the region, for its success in innovation and specialist manufacturing. Commonwealth Bank is committed to supporting the region's future growth [5d27f354].
Meanwhile, Macquarie Group Ltd. reported a net income of A$3.52 billion ($2.31 billion) for the year ending March 31, which is a 32% decline compared to the previous year. The decline in profit was attributed to the underperformance of the commodities and global markets business. The result fell short of analysts' expectations, with an average projection of A$3.6 billion. Macquarie Group Ltd. is facing challenges in its commodities unit, which has weighed down its overall profitability [b5ea6d6a] [eb93e0f9].
