K62 Finance

ANZ-Roy Morgan Australian Consumer Confidence – Westpac Interest Rate Rise Chips Away Confidence

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 20-Oct-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by two per cent to 113.3 in the week ended 18 October 2015, following a bounce of 5.1 per cent in the previous week. Westpac’s decision to increase its mortgage interest rates, combined with news flow around slowing momentum in the property market, is likely to have contributed to the fall in confidence. The decline in confidence was broad-based. Of note, consumers’ views towards whether now is a "good time to buy a major household item" fell by 3.1 per cent. This sub-index is now 7.9 per cent below its long-run average.

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

Westpac shares climb after capital raising, rate increase

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Original article by Clancy Yeates
The Australian Financial Review – Page: 1 & 10 : 20-Oct-15

Shares in Westpac closed three per cent higher at $A31.34 on 19 October 2015, after being in a trading halt for almost a week. Clime Investment Management’s John Abernethy suggests that short selling in the wake of a $A3.5bn capital raising may have been the main driver of Westpac’s share price rise, rather than its move to lift mortgage interest rates by 0.2 per cent. Morningstar’s David Ellis says rival banks are likely to increase their own home loan rates.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, CLIME INVESTMENT MANAGEMENT LIMITED – ASX CIW, MORNINGSTAR PTY LTD, WATERMARK FUNDS MANAGEMENT PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, ALPHINITY INVESTMENT MANAGEMENT PTY LTD

Small lenders likely to follow majors up

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Original article by Shaun Drummond
The Australian Financial Review – Page: 17 : 16-Oct-15

Australia’s other three major banks have not yet increased their home loan interest rates in response to Westpac’s move. Bendigo & Adelaide Bank CEO Mike Hirst has indicated that the regional bank may increase its mortgage rates if the other "big three" do so, while Suncorp Bank, CUA and Firstmac may do so as well. Suncorp reduced its interest rates on some home loans on the same day that Westpac announced its rate increase.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, SUNCORP BANK, SUNCORP GROUP LIMITED – ASX SUN, CREDIT UNION AUSTRALIA LIMITED, FIRSTMAC LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Westpac to stick with dividend lift

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Original article by James Eyers
The Australian Financial Review – Page: 27 & 30 : 15-Oct-15

Westpac’s unaudited preliminary financial accounts for 2014-15 show that it has posted a full-year cash profit of $A7.82bn, which is three per cent higher than previously. Investors will receive a fully franked final dividend of $A0.94 per share, compared with $A0.92 in 2013-14, while Westpac also intends to pay a higher dividend in 2015-16. Westpac shares have been placed in a trading halt until 19 October 2015 due to the group’s $A3.5bn capital raising.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, MORGAN STANLEY AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, MOODY’S INVESTORS SERVICE INCORPORATED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

ANZ-Roy Morgan Consumer Confidence Climbs Higher to 115.6

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 13-Oct-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 5.1 per cent to 115.6 in the week ended 11 October 2015, more than reversing the falls of the previous two weeks. This is the second highest reading in more than a year, and leaves consumer confidence 2.6 per cent above its long-run average. The rise in consumer confidence was broad-based. The sub-index "economic conditions in the next five years" rose by 10 per cent, while "personal finances in the next 12 months" was up 6.6 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Call for tighter controls on payday lenders

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Original article by James Eyers
The Australian Financial Review – Page: 18 : 13-Oct-15

The Australian Centre for Financial Studies has proposed to set up a national database of payday loans. It also argues that payday lenders should be more discriminating in assessing borrowers and their capacity to service a loan. The market for payday loans was estimated to be worth between $A800 million and $1A billion in 2012.

CORPORATES
AUSTRALIAN CENTRE FOR FINANCIAL STUDIES, RMIT UNIVERSITY, MONEY3 CORPORATION LIMITED – ASX MNY, CASH CONVERTERS INTERNATIONAL – ASX CCV, ASX LIMITED – ASX ASX, CASH CONVERTERS INTERNATIONAL – ASX CCV, GOOD SHEPHERD MICROFINANCE, EQUIPSUPER PTY LTD, BANK OF QUEENSLAND LIMITED – ASX BOQ, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

ANZ signals push into NSW home lending

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Original article by Jonathan Shapiro, James Eyers
The Australian Financial Review – Page: 1 & 11 : 12-Oct-15

Increasing its share of the home loan market in New South Wales will be a priority for the ANZ Bank under new CEO Shayne Elliott, who will succeed Mike Smith in early 2016. Elliott also says the growing shift to the use of mobile devices for banking represents both a challenge and an opportunity for the banking sector in terms of engaging with customers. Meanwhile, ANZ chairman David Gonski says the group will review its Asian strategy under Elliott.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, PT PANIN BANK, AMBANK BERHAD, BANK OF TIANJIN COMPANY LIMITED, SHANGHAI RURAL COMMERCIAL BANK, MACQUARIE GROUP LIMITED – ASX MQG, ESANDA FINANCE CORPORATION LIMITED

Australian Roy Morgan Business Confidence boosted in September with change of PM but remains below average

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 9-Oct-15

A Roy Morgan Business Single Source survey has found that Australian business confidence rose by 9.9 per cent to 112.8 in September 2015. This improvement in confidence for Australia’s economic outlook was generally expected as a result of the change in Prime Minister. However, business confidence still remains below the five-year average (116.8) and the level of 12 months ago (122.9). The increase in Roy Morgan Business Confidence in September was a result of improvements across all components of the index. The strongest gains were in how businesses feel about the economy over the next 12 months and the next five years, and the encouragement this would give them to invest in their business.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Macquarie bulks up with Esanda

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Original article by Joyce Moullakis, Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 1 & 8 : 9-Oct-15

Macquarie Group will become one of Australia’s three largest vehicle financiers after paying $A8.2bn for the Esanda Dealer Finance business. The sale of Esanda will boost the ANZ Bank’s common equity tier one capital ratio. Macquarie will partially finance the acquisition via a capital raising, with plans to tap institutional investors for $A400m via a share placement. Macquarie shares traded at $A77.84 on 8 October 2015, prior to a trading halt.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ESANDA FINANCE CORPORATION LIMITED, AWAS AVIATION CAPITAL LIMITED, CROWN CASTLE AUSTRALIA PTY LTD, APACHE ENERGY LIMITED, THAMES WATER UTILITIES LIMITED, MOTO, JP MORGAN AUSTRALIA LIMITED, MACQUARIE CAPITAL PTY LTD, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, CADENCE CAPITAL LIMITED – ASX CDT, CREDIT SUISSE (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, HNA GROUP, NOMURA AUSTRALIA LIMITED, PEPPER GROUP LIMITED – ASX PEP

BoQ chief glimpses a sunnier state for bank

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Original article by Shaun Drummond
The Australian Financial Review – Page: 13 & 16 : 9-Oct-15

Bank of Queensland has posted 2014-15 cash earnings of $A$357m, which is 19 per cent higher than previously. Revenue was 17 per cent higher at $A1.08bn, while its home loan book increase by nine per cent to $A25.6bn. The value of all loans rose by seven per cent to $A40.9bn in total. CEO Jon Sutton is upbeat about the regional bank’s earnings outlook, noting that it should benefit from factors such as new capital requirements for its larger peers.

CORPORATES
BANK OF QUEENSLAND LIMITED – ASX BOQ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CONTANGO ASSET MANAGEMENT LIMITED, BELL POTTER SECURITIES LIMITED, WATERMARK FUNDS MANAGEMENT PTY LTD, VIRGIN MONEY (AUSTRALIA) PTY LTD