K62 Finance

Analysts cool on CBA’s $2.4b profit

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Original article by Clancy Yeates
The Australian Financial Review – Page: 13 & 17 : 6-Nov-15

The Commonwealth Bank has posted an unaudited profit of $A2.4bn for the September 2015 quarter, which is four per cent higher year-on-year. The major bank’s trading update also indicated that its exposure to impaired and doubtful loans fell from $A6bn to $A5.5bn during the period, while deposits accounted for 63 per cent of its funding. The group’s tier one capital ratio rose to 9.8 per cent during the quarter following a $A5.1bn equity raising.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE GROUP LIMITED – ASX MQG, WATERMARK FUNDS MANAGEMENT PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, FOLKESTONE MAXIM ASSET MANAGEMENT LIMITED

ANZ-Roy Morgan Australian Consumer Confidence Consolidates

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 4-Nov-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 1.6 per cent to 115.2 in the week ended 1 November 2015. Despite recent moves by the big four banks to raise variable mortgage rates, this week’s result confirms that overall consumer confidence remains on an upward trend, most likely reflecting the increased faith in the new Prime Minister. The four-week moving average is now at its highest level since February 2014. The subindex "economic conditions in the next 12 months" has risen by 5.1 per cent, and is now 25 per cent higher than prior to the change in Prime Ministership.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, PROPERTY COUNCIL OF AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA

Dollar jumps as RBA wrong-foots punters with cash rate

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Original article by Mark Mulligan
The Australian Financial Review – Page: 32 : 4-Nov-15

The Australian dollar was fetching $US0.7199 late in trading on 3 November 2015. The currency reached an intra-day high of $US0.7209 after the Reserve Bank left the cash rate on hold. Central bank governor Glenn Stevens indicated that there may be potential for further rate cuts given the low inflation rate. Felicity Emmett of the ANZ Bank expects the cash rate to be left on hold again in December before being reduced in February.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, JP MORGAN AUSTRALIA LIMITED, JAMIESONCOOTEBONDS PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD

ANZ-Roy Morgan Consumer Confidence increases again as RBA meets to decide on interest rates – now 115.2 (up 1.8pts)

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 3-Nov-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 0.1 per cent to 115.2 in the week ended 1 November 2015. The largest contributor to the increase in consumer confidence over the past two weeks has been the positive increase in the "time to buy index", which has risen by seven per cent over the last fortnight and is now at +30 per cent. Meanwhile, 46 per cent (up two per cent in a fortnight) say now is a "good time to buy" major household items. Roy Morgan Research executive chairman Gary Morgan says the recent ABS low inflation figure and the positive movement in the ANZ-Roy Morgan Consumer Confidence rating is a good sign for the Turnbull Government. However, the high level of real unemployment and under-employment is still Australia’s major problem. By implementing reforms to free-up the labour market the Government will have a much bigger and more positive impact on the Australian economy overall than the recent suggestion of tax reform and increasing the rate of the GST to 15 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUREAU OF STATISTICS, 7-ELEVEN STORES PTY LTD

Aussie higher on RBA bets as currency wars rumble on

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Original article by Mark Mulligan
The Australian Financial Review – Page: 32 : 3-Nov-15

The Australian dollar traded around $US0.7139 in late local trade on 2 November 2015. Traders expect the Reserve Bank of Australia to keep the official interest rate unchanged. The Australian currency has lost about 27 per cent in value against the US dollar since the US Federal Reserve ended its policy of quantitative easing.

CORPORATES
RESERVE BANK OF AUSTRALIA, EUROPEAN CENTRAL BANK, UNITED STATES. FEDERAL RESERVE BOARD

Nailing cup victor easier than RBA pick

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Original article by Jacob Greber, James Thomson
The Australian Financial Review – Page: 7 : 3-Nov-15

It is difficult to guess whether the Reserve Bank of Australia will decide to cut the official interest rate when the board of the central bank meets on 3 November 2015. Economists from Australia’s four big banks believe that the cash rate will remain unchanged at two per cent. Some analysts expect a cut, stressing the fact that headline inflation was only at 1.5 per cent in the September quarter.

CORPORATES
RESERVE BANK OF AUSTRALIA, BLOOMBERG LP, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, HSBC AUSTRALIA HOLDINGS PTY LTD

NAB does 10-year deal with Visa

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Original article by Shaun Drummond
The Australian Financial Review – Page: 17 : 2-Nov-15

National Australia Bank has terminated its alliance with MasterCard in favour of rival credit card provider Visa. The two groups will co-operate in the development of new payment solutions as the trend toward the use of mobile devices for making payments gathers pace. Australian banks are also holding talks with Google regarding the introduction of its Android Pay system.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, VISA INTERNATIONAL, MASTERCARD AUSTRALIA LIMITED, GOOGLE INCORPORATED, APPLE INCORPORATED, SAMSUNG CORPORATION, AMERICAN EXPRESS COMPANY

Bank profits feel the heat of increased competition

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Original article by Clancy Yeates
The Australian Financial Review – Page: 17 : 2-Nov-15

Factors such as low interest rates and growing competition are putting downward pressure on the lending margins of Australia’s major banks. Westpac has reported flat net interest margins for fiscal 2015, while the rival "big four" banks reported lower margins. Julie Coates of PricewaterhouseCoopers forecasts that the banks’ margins will fall below the record low of 2.05 per cent recorded in 2008.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WATERMARK FUNDS MANAGEMENT PTY LTD, BELL POTTER SECURITIES LIMITED, RESERVE BANK OF AUSTRALIA

Tech fund rush to hit $1b

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Original article by Patrick Durkin
The Australian Financial Review – Page: 1 & 6 : 2-Nov-15

Square Peg Capital will launch a $A200m venture capital fund that will invest in technology start-ups. Square Peg Capital was co-founded by Paul Bassat, who was also the joint founder of jobs website SEEK. Other recent initiatives in Australia’s venture capital space include a $A200m fund launched by Blackbird Ventures and Atlassian Software founder Michael Cannon-Brookes. Brandon Capital also launched a $A200m fund earlier in 2015.

CORPORATES
SQUARE PEG CAPITAL PTY LTD, SEEK LIMITED – ASX SEK, BLACKBIRD VENTURES PTY LTD, ATLASSIAN SOFTWARE SYSTEMS PTY LTD, BRANDON CAPITAL MANAGEMENT PTY LTD, AUSTRALIANSUPER PTY LTD, HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED, STATEWIDE SUPERANNUATION PTY LTD, HOST-PLUS, THE GROUP OF EIGHT LIMITED, AIRTREE VENTURES PTY LTD, ACCEL PARTNERS, 99DESIGNS PTY LTD, CARSALES.COM LIMITED – ASX CAR, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIA. OFFICE OF THE CHIEF SCIENTIST, WESFARMERS LIMITED – ASX WES, AUSTRALIAN FOOTBALL LEAGUE, GOCATCH, ROCKT, VEND LIMITED, SCRIPTROCK PTY LTD, JETSTAR AIRLINES PTY LTD

ANZ calms the market on dividends fears

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Original article by Clancy Yeates, James Eyers
The Australian Financial Review – Page: 13 & 17 : 30-Oct-15

The ANZ Bank has posted a cash profit of $A7.2bn for 2014-15, which is one per cent higher than previously. However, its Australian division’s cash profit rose by seven per cent. The group’s return on equity fell from 15.4 per cent to 14 per cent in 2015-16, and CEO Mike Smith says it will abandon its goal of lifting this to 16 per cent. He has also stressed that ANZ will not reduce its dividend payout in order to offset the cost of complying with new capital requirements.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CITIGROUP PTY LTD, CADENCE CAPITAL LIMITED – ASX CDT, DEUTSCHE BANK AG, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY