K62 Finance

NAB tells rivals it is ready for a fight

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Original article by James Eyers, Joyce Moullakis
The Australian Financial Review – Page: 13 & 16 : 31-Oct-14

National Australia Bank (NAB) posted a 4.5 per cent decline in net interest income from business lending in the year to 30 September 2014. CEO Andrew Thorburn says the banking major will pursue a range of measures to ensure that it remains Australia’s leading business bank, including hiring more business bankers. He has ruled out relaxing NAB’s lending standards in the sector. NAB has reported a 2013-14 profit of $A5.18bn

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACQUARIE GROUP LIMITED – ASX MQG, ARNHEM INVESTMENT MANAGEMENT PTY LTD, RESERVE BANK OF AUSTRALIA, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED

Young Australians saved over $650 million

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 30-Oct-14

Roy Morgan Research’s latest Young Australians Survey has found that 74 per cent of Australians aged 6-13 currently have personal savings, which total $A653m. The survey, which was carried out in the year to June 2014, also shows that the average amount saved by Australians in this age group is $A285, while 21.2 per cent have savings of less than $A50 and 10.2 per cent have savings of $A1,000 or more

CORPORATES
ROY MORGAN RESEARCH LIMITED, HERITAGE BANK LIMITED – ASX HBS, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

NAB to step up UK asset sales

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Original article by Clancy Yeates, James Eyers
The Australian Financial Review – Page: 30 : 30-Oct-14

Some analysts believe that National Australia Bank (NAB) will divest the UK’s Clydesdale Bank via an IPO within six months. NAB is likely to reveal its sale options for the Clydesdale and Yorkshire Bank businesses when its 2013-14 financial results are released on 30 October 2014. NAB is tipped to post a full-year profit within the range of $A5.1bn to $A5.2bn, down from $A5.94bn previously

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, YORKSHIRE BANK PLC, GREAT WESTERN BANK, MLC LIMITED, GREAT BRITAIN. FINANCIAL CONDUCT AUTHORITY

Suncorp urges inquiry to level the playing field

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Original article by Clancy Yeates
The Australian Financial Review – Page: 27 : 30-Oct-14

Suncorp CEO Patrick Snowball believes that the Federal Government’s financial system inquiry focuses excessively on the stability of Australia’s banking system while paying little attention to competition in the sector. He said on 29 October 2014 that smaller banks are disadvantaged by the current regulations. Snowball also spoke against allowing foreign insurers to sell policies in north Queensland

CORPORATES
SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, WESTPAC BANKING CORPORATION – ASX WBC, AMERICAN CHAMBER OF COMMERCE IN AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC

Risk of ‘fiscal fiasco’ if China runs off the rails

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Original article by David Uren
The Australian – Page: 2 : 27-Oct-14

Deloitte Access Economics has released a new report on the potential impact on Australia of a more rapid slowing of GDP growth in China. The latter accounts for 38% of Australian exports, and if its growth rate falls to under 4% per annum Australia is likely to experience a recession. The forecasting firm warns that the Federal Government must do more to rein in the Budget deficit in light of this scenario. However Deloitte still maintains that the most likely outcome is growth in China of 7% or more, and a fall in Australia’s terms of trade of 9.2% for 2014-15 before less dramatic declines of between 1% and 2% a year in the period to 2018-19

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD

Boart Longyear saved in Centerbridge deal

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Original article by Paul Garvey
The Australian – Page: 21 : 24-Oct-14

The US-based Centerbridge Partners private equity firm has announced that it will make as much as $US352m ($A401.8m) available to troubled mining services group Boart Longyear in a debt-to-equity deal. The Australian-­listed drilling company has suffered a share price decline of 93%-plus in a little over 1.5 years, and had recently created doubt over its ability to continue as a going concern. Centerbridge will lift its stake from 13% to between 41.6% and 70%, although its voting stock holding will be restricted to 49.9%

CORPORATES
BOART LONGYEAR LIMITED – ASX BLY, CENTERBRIDGE PARTNERS LP, BILLABONG INTERNATIONAL LIMITED – ASX BBG, OAKTREE CAPITAL MANAGEMENT LLC, UBS HOLDINGS PTY LTD

Stevens slams bank holdouts

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Original article by Richard Gluyas
The Australian – Page: 21 : 24-Oct-14

A new payments platform enabling real-time processing of transactions is supposed to be rolled out with the help of the Australian banking sector by late 2016. However Westpac Banking and others have not yet approved the incorporation of a joint venture for the project, drawing sharp criticism from Reserve Bank of Australia governor Glenn Stevens. He told the 2014 congress of the Australian Payments Clearing Association that the central bank "would be duty-bound to consider a regulatory ­approach" if no progress can be achieved

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, AUSTRALIAN PAYMENTS CLEARING ASSOCIATION LIMITED, MORTGAGE CHOICE LIMITED – ASX MOC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Inflation on track and RBA still likely to tighten with the Fed

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Original article by Alan Mitchell
The Australian Financial Review – Page: 8 : 23-Oct-14

Australia’s CPI data for the third quarter of 2014 suggests that inflation is likely to be at the lower end of the Reserve Bank’s target range by the end of 2015. The central bank expects the underlying inflation rate to fall to about 2.25 per cent per annum in the December quarter. The Australian dollar is likely to continue to weaken against the US dollar if interest rates are raised in the US

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

CBA slip to hit management pay

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Original article by James Eyers
The Australian Financial Review – Page: 21 : 22-Oct-14

A new survey by Roy Morgan Research shows that the Commonwealth Bank’s overall customer satisfaction rating has fallen by one per cent to 81.1 per cent. Meanwhile, Westpac’s rating has risen by 1.1 per cent to 81 per cent. The Commonwealth Bank has also fallen further in Roy Morgan’s measure of customers’ satisfaction with their main financial institution, ranking behind Westpac and the ANZ Bank. The Roy Morgan customer satisfaction data is used in determining Commonwealth Bank executives’ long-term incentives

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, ROY MORGAN RESEARCH LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH FINANCIAL PLANNING LIMITED, FINANCIAL WISDOM LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, DBM AUSTRALIA LIMITED, WEALTH INSIGHTS PTY LTD

Infrastructure needed ‘to pick up slack’

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Original article by Glenda Korporaal, Annabel Hepworth
The Australian – Page: 17 : 20-Oct-14

An Australian Institute of Company Directors forum has heard from Kevin McCann, chair of investment banking firm Macquarie Group. He said the national economy was likely to remain subdued, and there was an urgent need for major infrastructure projects by governments to provide a stimulus as capital expenditure in sectors other than energy declines. Such an approach has already been promised by the Federal Government, and will be promoted by it at the Group of 20 (G20) leaders’ summit in November 2014

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, GROUP OF TWENTY (G-20), UNITED STATES. FEDERAL RESERVE BOARD, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, COCHLEAR LIMITED – ASX COH, RESERVE BANK OF AUSTRALIA