K62 Finance

Mortgage stress increased in January following RBA’s November rate rise to record high above 1.6 million

roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 27-Feb-24

New research from Roy Morgan shows that 1,609,000 mortgage holders (31.0%) were ‘At Risk’ of ‘mortgage stress’ in the three months to January 2024. This period included an interest rate increase on Melbourne Cup Day, with the RBA raising interest rates to 4.35%. The figure for January represented a new record high total for mortgage holders considered ‘At Risk’ of mortgage stress, beating the previous record highs above 1.56 million in August and September 2023. The number of Australians ‘At Risk’ of mortgage stress has increased by 802,000 since May 2022, when the RBA began a cycle of interest rate increases. Meanwhile, the number of mortgage holders considered ‘Extremely At Risk’ of mortgage stress is now numbered at 994,000 (19.8% of mortgage holders), which is significantly above the long-term average over the last 10 years of 14.3%. These are the latest findings from Roy Morgan’s Single Source Survey, based on in-depth interviews conducted with over 60,000 Australians each year, including over 10,000 owner-occupied mortgage-holders.

CORPORATES
ROY MORGAN LIMITED

ANZ cleared for $4.9bn Suncorp deal

roymorgansocial Leave a comment

Original article by Paulina Duran
The Australian – Page: 15 & 19 : 21-Feb-24

The ANZ Bank will overtake National Australia Bank as the nation’s third-biggest lender after receiving approval for its acquisition of Suncorp Bank. The Australian Competition Tribunal rejected the Australian Competition & Consumer Commission’s assertion that the $4.9bn deal would substantially lessen competition in sectors such as mortgage lending. The tribunal’s deputy president John Halleysays it was of the view that the small increase in ANZ’s market share arising from the merger would not significantly increase the likelihood of ‘co-ordination’ among the major banks in order to limit competition.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, SUNCORP BANK, SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA. COMPETITION TRIBUNAL, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Bendigo cool on ANZ plan

roymorgansocial Leave a comment

Original article by Lucas Baird
The Australian Financial Review – Page: 18 : 20-Feb-24

The Australian Competition Tribunal’s decision on the ANZ Bank’s bid to acquire Suncorp Group’s banking arm will be announced today. The Australian Competition & Consumer Commission blocked the deal in 2023. Bendigo & Adelaide Bank MD Marnie Baker says the ANZ-Suncorp deal is "not a good transaction for competition or consumers", although she has declined to state whether Bendigo will make an offer for Suncorp Bank if the ANZ deal is rejected. Meanwhile, Bendigo has posted a 2023-24 interim cash profit of $268.2m, which is five per cent lower than previously.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, SUNCORP BANK, SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA. COMPETITION TRIBUNAL, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN

Millions of people being left behind as big banks close branches, say experts

roymorgansocial Leave a comment

Original article by Matthew Elmas
The New Daily – Page: Online : 16-Feb-24

Researchers from RMIT and Swinburne University have warned that many Australians are being left with limited or no access to banking services as the sector shifts to digital banking. The nation’s major banks have closed hundreds of branches in recent years, but Julian Thomas from RMIT says a significant proportion of Australians either lack reliable access to the internet or cannot afford the cost. The banking industry has claimed that nine out of 10 Australians now use online banking; however, the researchers’ analysis of digital inclusion index data shows that only 74 per cent of people aged 75+ and 87 per cent of public housing tenants do so. They also note that many people in regional and rural areas lack reliable internet access.

CORPORATES
RMIT UNIVERSITY, SWINBURNE UNIVERSITY OF TECHNOLOGY

RBA rate cuts a double-edged sword for first-home buyers

roymorgansocial Leave a comment

Original article by Matt Bell
The Australian – Page: 19 : 6-Feb-24

The Reserve Bank of Australia is widely tipped to leave the cash rate unchanged at 4.35 per cent on Tuesday. Sally Tindall of RateCity says the key focus will be on whether the central bank removes its tightening bias. Meanwhile, money markets now expect the RBA to reduce the cash rate by 25 per cent in both August and November. Ray White’s chief economist Nerida Conisbee notes that interest rate cuts will increase the borrowing power of first home buyers, but can also be expected to further boost house prices.

CORPORATES
RESERVE BANK OF AUSTRALIA, RATECITY PTY LTD, RAY WHITE GROUP

Mortgage stress increased in December following RBA’s November rate rise but still below mid-year highs

roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 31-Jan-24

New research from Roy Morgan shows that 1,527,000 mortgage holders (30.3%) were ‘At Risk’ of ‘mortgage stress’ in the three months to December 2023. This period included an interest rate increase on Melbourne Cup Day, with the RBA raising interest rates to 4.35%. The figure for December represented the highest level of mortgage stress for three months as the impact of the interest rate increase flowed through, but still below the record highs above 1.56 million mortgage holders ‘At Risk’ in both August and September 2023. This is only the fourth time the index has shown over 1.5 million mortgage holders to be considered ‘At Risk’. The number of Australians ‘At Risk’ of mortgage stress has increased by 720,000 since May 2022, when the RBA began a cycle of interest rate increases. Meanwhile, the number of mortgage holders considered ‘Extremely At Risk’ of mortgage stress is now numbered at 964,000 (19.8% of mortgage holders), which is significantly above the long-term average over the last 10 years of 14.2%. These are the latest findings from Roy Morgan’s Single Source Survey, based on in-depth interviews conducted with over 60,000 Australians each year, including over 10,000 owner-occupied mortgage-holders.

CORPORATES
ROY MORGAN LIMITED

Investors caution markets still too bullish on rates

roymorgansocial Leave a comment

Original article by Cecile Lefort
The Australian Financial Review – Page: 21 : 24-Jan-24

Financial markets have scaled back their expectations of interest rate cuts from the Reserve Bank of Australia in 2024; the RBA is now expected to reduce the cash rate by 37 basis points over the year, compared with expectations of a 55 basis point cut earlier in January. Tim Van Klaveren of UBS expects two rate cuts in 2024, while Matt Wacher from Morningstar anticipates three rate cuts in response to an economy that he expects to slow quickly. Meanwhile, financial markets have now fully priced in a US interest rate cut in June.

CORPORATES
RESERVE BANK OF AUSTRALIA, UBS HOLDINGS PTY LTD, MORNINGSTAR PTY LTD

Economists warn of unintended fallout from RBA overhaul

roymorgansocial Leave a comment

Original article by Cecile Lefort
The Australian Financial Review – Page: 21 : 17-Jan-24

Economists polled by The Australian Financial Review have expressed some reservations with regard to how the Reserve Bank will communicate monetary policy decisions under its new structure. The RBA’s mew Monetary Policy Board will be responsible for setting interest rates; it will publish details of how the board voted on rate decisions, but not the voting records of each board member. Economists contend amongst other things that not diclosing these votes could potentially give rise to speculation of dissension amongst board members when this does not exist.

CORPORATES
RESERVE BANK OF AUSTRALIA

Mortgage stress continued to ease in November despite the RBA raising interest rates on Melbourne Cup Day

roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 17-Jan-24

New research from Roy Morgan shows that 1,490,000 mortgage holders (29.9%) were ‘At Risk’ of ‘mortgage stress’ in the three months to November 2023. This period included only one interest rate increase on Melbourne Cup Day, with the RBA raising interest rates to 4.35%. The figure for November represented a second straight monthly decrease as mortgage stress continued to ease due to a combination of factors – including increased household incomes, increased employment and reduced amounts borrowed and outstanding. This is the first time since January 2022 (before the RBA began raising interest rates) that mortgage stress has decreased for two straight months. However, despite the easing in mortgage stress this was only the sixth time in the history of the index that over 1.45 million mortgage holders were considered ‘At Risk’. The number of Australians ‘At Risk’ of mortgage stress has increased by 683,000 since May 2022 when the RBA began a cycle of interest rate increases. Meanwhile, the number of mortgage holders considered ‘Extremely At Risk’ of mortgage stress is now numbered at 934,000 (19.3% of mortgage holders) which is significantly above the long-term average over the last 10 years of 14.2%. These are the latest findings from Roy Morgan’s Single Source Survey, based on in-depth interviews conducted with over 60,000 Australians each year, including over 10,000 owner-occupied mortgage-holders.

CORPORATES
ROY MORGAN LIMITED

Bullock: banks should bear more of cost of moving cash

roymorgansocial Leave a comment

Original article by James Eyers
The Australian Financial Review – Page: 4 : 13-Dec-23

Australia’s major banks will hold an emergency meeting on Wednesday to discuss the future of cash distribution, amid warnings from cash transport firm Armaguard that the growing shift to digital payments may threaten the company’s viability. Reserve Bank of Australia governor Michele Bullock says there are merits to exploring a co-operative model for cash distribution, which would require authorisation from the Australian Competition & Consumer Commission. Bullock added that the central bank places a high priority on the community continuing to have reasonable access to cash withdrawal and deposit services.

CORPORATES
RESERVE BANK OF AUSTRALIA, ARMAGUARD