K62 Finance

Medibank IPO fee pool not as lucrative for key bankers

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 13 & 18 : 25-Nov-14

The three banks that were lead managers for the $A5.7bn IPO of Medibank Private will be collectively paid $A19.7m in fees. They will each receive a base management fee of $A5m, as well as incentive fees. The total fees associated with the IPO tops $A36m when the fees paid to law firms and other advisers are taken into account. IPOs of government-owned businesses are typically less lucrative for bankers, but they tend to be attracted to such floats for the prestige and the potential for similar work in the future

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, MACQUARIE GROUP LIMITED – ASX MQG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, DEUTSCHE BANK AG, AURIZON HOLDINGS LIMITED – ASX AZJ, TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, LAZARD PTY LTD, REUNION CAPITAL PARTNERS PTY LTD, HERBERT SMITH FREEHILLS PTY LTD, KING AND WOOD MALLESONS, ERNST AND YOUNG, DELOITTE TOUCHE TOHMATSU LIMITED, BELL POTTER SECURITIES LIMITED, BELL FINANCIAL GROUP LIMITED – ASX BFG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MORGANS FINANCIAL LIMITED, UBS WEALTH MANAGEMENT AUSTRALIA LIMITED, ARNHEM INVESTMENT MANAGEMENT PTY LTD

Sliding profits build pessimism

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Original article by Adam Creighton
The Australian – Page: 19 : 24-Nov-14

Australian Chamber of Commerce & Industry CEO Kate Carnell has issued the employer lobby group’s latest survey of small business conditions. While the residential construction sector is strong because of increased housing demand, for all other types of small enterprises there has been a decline across the 11 indicators measured. Subdued sentiment among consumers as well as businesses has meant the Reserve Bank of Australia’s official interest rate cuts have failed to spark increased spending that would lift the economy

CORPORATES
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, RESERVE BANK OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, HOUSING INDUSTRY ASSOCIATION LIMITED

Traders benched in rates fix probe

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Original article by Richard Gluyas
The Australian – Page: 1 : 20-Nov-14

The Australian Securities & Investments Commission (ASIC) is continuing its investigation of banks and investment banks that allegedly colluded to manipulate the bank bill swap rate via the Australian Financial Markets Association. BNP Paribas, UBS and Royal Bank of Scotland have already incurred penalties, and ANZ Banking has now stood aside seven market trading staff on full pay due to the ASIC inquiry. ANZ chief risk officer Nigel Williams says the bank is co-operating fully with the watchdog

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN FINANCIAL MARKETS ASSOCIATION INCORPORATED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, UBS AG, ROYAL BANK OF SCOTLAND GROUP PLC, BNP PARIBAS SA

Westpac scores highest satisfaction of the big four banks for personal and business customers

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 19-Nov-14

A Roy Morgan Single Source survey has found that the satisfaction level of the personal customers of Australian banks rose by 0.2 per cent to a record 82.6 per cent in October 2014. Westpac had the highest personal customer satisfaction rating of the four major banks in the six months to October, at 81.5 per cent, ahead of the Commonwealth Bank (81.2 per cent). Westpac also had the highest satisfaction rating among business customers (72.3 per cent), followed by National Australia Bank (69 per cent)

CORPORATES
ROY MORGAN RESEARCH LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

NAB hires Deloitte ahead of stepping up life division sale

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 21 : 20-Nov-14

Financial market analysts estimate that the life insurance business of National Australia Bank (NAB) is worth around $A1.4bn. Deloitte has been hired to advise the banking major on options for the business, which could include selling all or part of it. Ross Curran of the Commonwealth Bank believes that NAB’s life business can be sold if it is offered at an appropriate price. The life business is part of NAB’s MLC division

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, DELOITTE TOUCHE TOHMATSU LIMITED, MLC LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, METLIFE INSURANCE LIMITED, JP MORGAN AUSTRALIA LIMITED, AXA ASIA PACIFIC HOLDINGS LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, DAI-ICHI LIFE INSURANCE COMPANY LIMITED, NIPPON LIFE INSURANCE COMPANY LIMITED, ZURICH INSURANCE COMPANY, AMERICAN INTERNATIONAL GROUP INCORPORATED, CLSA AUSTRALIA PTY LTD

Funds predict tough times ahead for local shares

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 28 : 19-Nov-14

Paradice Investment Management founder David Paradice is among the fund managers who forecast lower earnings growth in Australia during 2015. Geoff Wilson of Wilson Asset Management expects the Australian sharemarket to be lower at the end of 2015, while Damien Boey of Credit Suisse says factors such as the weaker Australian economy and the fall in commodity prices will prompt at least one more interest rate cut

CORPORATES
PARADICE INVESTMENT MANAGEMENT PTY LTD, WILSON ASSET MANAGEMENT, CREDIT SUISSE (AUSTRALIA) LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, CALTEX AUSTRALIA LIMITED – ASX CTX, COCHLEAR LIMITED – ASX COH, TABCORP HOLDINGS LIMITED – ASX TAH, SLATER AND GORDON LIMITED – ASX SGH, INFOMEDIA LIMITED – ASX IFM, ARISTOCRAT LEISURE LIMITED – ASX ALL, RESERVE BANK OF AUSTRALIA

NAB execs poorer by $44m

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Original article by Richard Gluyas
The Australian – Page: 22 : 18-Nov-14

The 2013-14 annual report of National Australia Bank (NAB) shows that senior managers forfeited some $A44m worth of stock meant as incentive awards. The remuneration of departed CEO Cameron Clyne in his final year at the helm dropped from $A7.8m to $A6m, even when taking into account a "golden parachute" payment of $A1.7m. The lapsed equity in his case amounted to $A19.1m. The details follow the recent news that NAB’s cash profit had fallen by a tenth due to major provisioning charges

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD

Anchorage to buy Pacific’s Brand Collective unit

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Original article by Sarah Thompson, Sue Mitchell
The Australian Financial Review – Page: 15 & 20 : 18-Nov-14

Private equity firm Anchorage Capital Partners is believed to be in talks to acquire the Brand Collective division of Australian-listed Pacific Brands. The division boasted sales of $A205m in fiscal 2014, but it posted a loss of $A0.9m prior to one-off costs. Anchorage will be hoping to emulate its success in turning around the fortunes of Dick Smith. Brand Collective owns brands such as Volley and Grosby, and operates several chains of shoe stores

CORPORATES
PACIFIC BRANDS LIMITED – ASX PBG, BRAND COLLECTIVE, ANCHORAGE CAPITAL PARTNERS PTY LTD, GROSBY FOOTWEAR, VOLLEY, SHOE WAREHOUSE, SHOE SUPERSTORE GROUP PTY LTD, DICK SMITH HOLDINGS LIMITED – ASX DSH, SUPERDRY, MOSSIMO, HUSH PUPPIES, CLARKS SHOES LIMITED, WOOLWORTHS LIMITED – ASX WOW, MYER HOLDINGS LIMITED – ASX MYR, HARD YAKKA, KING GEE CLOTHING COMPANY, STUBBIES CLOTHING COMPANY, WESFARMERS LIMITED – ASX WES, MACQUARIE CAPITAL PTY LTD, KPMG AUSTRALIA PTY LTD, BONDS INDUSTRIES LIMITED, SHERIDAN AUSTRALIA PTY LTD

Councils target ANZ on sale of toxic debt

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Original article by Leo Shanahan
The Australian – Page: 31 : 14-Nov-14

Australian local government bodies led by Coffs Harbour City Council are launching legal action in the Federal Court against ANZ Bank. They allege misleading and deceptive conduct, breach of contract, breach of fiduciary duties and breach of the banking code of practice. ANZ had sold the claimants risky collateralised debt obligations between 2006 and 2008, without disclosing its own stake in the instruments. A co-respondent to the suit is credit ratings agency Fitch Ratings, which had given "AAA" status to the Credit Sail II product

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FITCH RATINGS LIMITED, COFFS HARBOUR CITY COUNCIL, FEDERAL COURT OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, LEHMAN BROTHERS INCORPORATED, GLOUCESTER SHIRE COUNCIL

Aussie ‘will hit US76c’

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Original article by Anthony Macdonald
The Australian Financial Review – Page: 27 : 14-Nov-14

Geoffrey Kendick of Morgan Stanley is bearish about the outlook for the Australian dollar, forecasting that it will end 2014 at $US0.85. Kendrick expects the currency to be trading at just $US0.76 at the end of 2015. He also believes that there is the potential for global deflation, and he does not expect the Reserve Bank to increase official interest rates before its US counterpart does so

CORPORATES
MORGAN STANLEY AND COMPANY INCORPORATED, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD