K62 Finance

Westpac faces management overhaul

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Original article by Clancy Yeates
The Australian Financial Review – Page: 21 & 24 : 11-Jun-15

Westpac has revealed an internal restructuring which will result in the creation of two new divisions. George Frazis will head the consumer banking division, while David Lindberg will be at the helm of the commercial and business banking division. TS Lim of Bell Potter says some Westpac or St George bank branches that are in close proximity might eventually be closed now that the two brands are within the same division of the banking major.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, BANK OF MELBOURNE LIMITED, BANK OF SOUTH AUSTRALIA LIMITED, RAMS HOME LOANS PTY LTD, BELL POTTER SECURITIES LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Big four won’t need to seek capital: analysts

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 30 : 11-Jun-15

JP Morgan has suggested that Australia’s four major banks will have to undertake equity raisings totalling $A14bn to comply with proposed capital requirements. However, Citigroup believes that the banks can comply with any changes to capital rules via their dividend reinvestment plans. National Australia Bank recently raised $A5.5bn via a rights issue.

CORPORATES
JP MORGAN AUSTRALIA LIMITED, CITIGROUP PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, RESERVE BANK OF AUSTRALIA

ANZ-Roy Morgan Australian Consumer Confidence Retraces

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 10-Jun-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 1.2 per cent to 112.1 in the week ended 7 June 2015, further retracing some of the Budget bounce. While the index is now 0.6 per cent below its long-run average, it remains around 10 per cent above levels seen a year ago. The sub-index for households’ confidence in the economic outlook over the next year fell by 2.4 per cent, while confidence in the economic outlook over the next five years fell by 6.7 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Business confidence in May boosted by budget – but remains fragile

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

A Roy Morgan Business Single Source survey has found that Australian business confidence rose by 9.1 per cent to 114.7 in May 2015. This is the highest level since January 2015 (114.9), but business confidence remains below the five-year average of 117.3 and the peak of 136.3 in October 2013. The increase in business confidence in May occurred across all components of the index, but stemmed mainly from an increase in the proportion of businesses believing that Australia will experience good economic conditions over the next 12 months.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Trade engagement push with Japan

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Original article by James Eyers
The Australian Financial Review – Page: 21 : 9-Jun-15

Australia’s Assistant Treasurer Josh Frydenberg is visiting Japan with a delegation of financial services industry executives. Frydenberg will address a business lunch on 9 June 2015, and will argue that financial services groups in both nations should capitalise on the Japan-Australia Economic Partnership Agreement. He says the financial services industries in both countries can benefit from each other’s expertise.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, FINANCIAL SERVICES COUNCIL, PERPETUAL LIMITED – ASX PPT, MACQUARIE INVESTMENT MANAGEMENT LIMITED, MLC LIMITED, JAPAN. OFFICE OF THE PRIME MINISTER, BANK OF JAPAN, NIKKO ASSET MANAGEMENT GROUP, TYNDALL INVESTMENT MANAGEMENT LIMITED, THE DAI-ICHI MUTUAL LIFE INSURANCE COMPANY LIMITED, TAL LIMITED, MITSUBISHI UFJ FINANCIAL GROUP INCORPORATED, AMP CAPITAL INVESTORS LIMITED, NIPPON LIFE INSURANCE COMPANY LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Grim GDP figures may mean further rate cuts

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Original article by Vesna Poljak
The Australian Financial Review – Page: 18 : 2-Jun-15

The general expectation of economists is that Australia recorded GDP growth of about 0.6 per cent in the March 2015 quarter. However, Citigroup has forecast real GDP growth of just 0.5 per cent, while Damien Boey of Credit Suisse says there is the potential for GDP on a nominal basis to contract in the first two quarters of calendar 2015. Boey says the GDP outlook may prompt the Reserve Bank to further reduce the cash rate in the near-term.

CORPORATES
CITIGROUP PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, RESERVE BANK OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FEDERAL RESERVE BANK OF ATLANTA

Banks’ commercial exposure rises

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Original article by Matthew Cranston
The Australian Financial Review – Page: 38 : 1-Jun-15

The total value of Australia’s four largest banks’ commercial property portfolios increased by 6.5 per cent to $A202.3bn in the year to March 2015. This includes some $A70.3bn worth of office properties. The Reserve Bank’s latest Financial Stability Review highlighted the potential risk of revaluations in the sector, although Brian Johnson of CLSA argues that the banks’ exposure to commercial property development is the main factor to consider.

CORPORATES
RESERVE BANK OF AUSTRALIA, CLSA AUSTRALIA PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

ANZ-Roy Morgan Singapore Consumer Confidence Rose in May

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 28-May-15

The monthly ANZ-Roy Morgan Singapore Consumer Confidence Index rose by four points to 129.7 in May 2015. Consumer confidence is now clearly above its long-term average of 122.2. The rise was driven by greater confidence across all components of the survey. The number of respondents who said their family is "better off" financially compared with a year ago has risen by two per cent to 31 per cent. Meanwhile, the number of respondents who expect Singapore to have "good times" financially over the next 12 months has risen by two per cent to 51 per cent.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ROY MORGAN RESEARCH LIMITED

Stock index ‘loaded with risk’

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 20 : 27-May-15

The head of Australian equities at Lazard, Rob Osborn, is concerned about the S&P/ASX 200’s weighting toward banks. The sector comprised nearly 42 per cent of the benchmark index in March 2015, and Osborn notes that one sector has had a significant weighting in the index on just two other occasions in the last 15 years – the technology boom in 2000 and the resources boom in 2008. In both instances a correction resulted in these sectors falling sharply. Meanwhile, bank stocks have fallen by nearly 10 per cent since March.

CORPORATES
LAZARD PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, DAVNET LIMITED, ECORP LIMITED, NEWS CORPORATION – ASX NWS

ANZ-Roy Morgan Consumer Confidence Holds Recent Gains

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 26-May-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 1.0 per cent to 113.5 in the week ended 24 May 2015, following strong growth in the previous fortnight. Confidence has been trending above its long-run average for two continuous weeks, following a five-month run of below average growth. Confidence remains 14.3 per cent higher than the level for the same time in 2014. The sub-index for households’ finances in the next year has risen by 2.7 per cent, although the sub-index for expectations of the economic outlook in the next year fell by 5.3 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ