K62 Finance

‘Weaker housing’: Morgan Stanley slashes banks’ valuations

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Original article by Emma Rapaport
The Australian Financial Review – Page: 26 : 22-Jun-22

Morgan Stanley analysts have warned that a recession in Australia and New Zealand is becoming more likely. Factors such as the worsening economic outlook and rising interest rates have prompted Morgan Stanley to downgrade its valuations for Australia’s four major banks, given their exposure to the housing market. The share prices of the ‘big four’ banks have fallen sharply since the Reserve Bank increased the cash rate by a higher-than-expected 50 basis points in June, while another rate rise is likely in July.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA

Lowe prompts double jump in rate forecasts

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Original article by Alex Gluyas
The Australian Financial Review – Page: 27 : 16-Jun-22

Financial markets have now fully priced in a 50 basis point increase in the cash rate at the Reserve Bank of Australia’s monthly board meeting in July. Financial markets also expect official interests to rise to four per cent by early 2023, compared with just 0.85 per cent at present. Investment bank Goldman Sachs expects the cash rate to rise by 50 basis points in July and the following two months; it had anticipated 25 basis point rate rises in August and September prior to recent comments by RBA governor Philip Lowe regarding the outlook for inflation and interest rates.

CORPORATES
RESERVE BANK OF AUSTRALIA, GOLDMAN SACHS AUSTRALIA GROUP HOLDINGS PTY LTD

ANZ remains prone to ‘liar loans’: UBS survey

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Original article by Ayesha de Kretser
The Australian Financial Review – Page: 17 : 27-Apr-22

Some 37 per cent of Australians who sought a mortgage loan in the second half of 2021 had lied on their application form, according to research by UBS. This compares with 41 per cent in 2020. The survey also shows that 55 per cent of ANZ Bank customers had included factual misstatements in their application form; this compares with 40 per cent of Westpac customers, 30 per cent of Commonwealth Bank customers and 19 per cent of National Australia Bank customers. John Storey of UBS says it is particularly concerning that 81 per cent of the ANZ customers who submitted applications for so-called ‘liar loans’ claim that they were advised to do so by their banker.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, UBS HOLDINGS PTY LTD

NAB backflips on outrageous credit card cash ban

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Original article by Charlotte Grieve
Brisbane Times – Page: Online : 1-Mar-22

It was recently revealed that the National Australia Bank was getting staff to encourage customers to use options other than cash payments in NAB branches when making credit card payments. It denied that the policy amounted to a ban on cash payments in branches, but internal training documents suggest otherwise. However, following an angry reaction from NAB customers and staff, the NAB has done a backflip on its credit card cash ban, which had been described as "outrageous" by the Finance Sector Union.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, FINANCE SECTOR UNION

Mobile banking apps and the internet are more satisfying for customers than branch visits or phone banking

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Original article by Roy Morgan
Market Research Update – Page: Online : 1-Mar-22

The new Roy Morgan Satisfaction with Banking Channels Report shows the CBA recording the highest customer satisfaction levels for branch visits, internet banking and mobile banking – using an app on a mobile phone or tablet – among the big four banks. The report also showed mobile banking and internet banking as the service channels with the highest customer satisfaction. As of December 2021, CBA was the strongest performer of the big four with the highest customer satisfaction across three of the service channels including mobile banking (90.8%), internet banking (87.8%) and branch banking (83.5%). The CBA had customer satisfaction of 76.3% for phone banking. There was little to split its competitors, with ANZ coming in second overall with 89.2% (mobile), 86.6% (internet), 83.2% (branch) and 76.6% (phone). Westpac followed with 87.9% (mobile), 86.1% (internet), 82.1% (branch) and the highest of the big four for phone banking (79.4%). NAB rounded out the big four with 89.8% (mobile), 86.5% (internet), 81.5% (branch) and 77.3% (phone). This new data comes from Roy Morgan Single Source, Australia’s most comprehensive consumer survey, derived from in-depth interviews with over 60,000 Australians each year.

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

NAB backflips on outrageous credit card cash ban

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Original article by Charlotte Grieve
Brisbane Times – Page: Online : 1-Mar-22

It was recently revealed that the National Australia Bank was getting staff to encourage customers to use options other than cash payments in NAB branches when making credit card payments. It denied that the policy amounted to a ban on cash payments in branches, but internal training documents suggest otherwise. However, following an angry reaction from NAB customers and staff, the NAB has done a backflip on its credit card cash ban, which had been described as "outrageous" by the Finance Sector Union.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, FINANCE SECTOR UNION

Mobile banking apps and the internet are more satisfying for customers than branch visits or phone banking

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Original article by Roy Morgan
Market Research Update – Page: Online : 1-Mar-22

The new Roy Morgan Satisfaction with Banking Channels Report shows the CBA recording the highest customer satisfaction levels for branch visits, internet banking and mobile banking – using an app on a mobile phone or tablet – among the big four banks. The report also showed mobile banking and internet banking as the service channels with the highest customer satisfaction. As of December 2021, CBA was the strongest performer of the big four with the highest customer satisfaction across three of the service channels including mobile banking (90.8%), internet banking (87.8%) and branch banking (83.5%). The CBA had customer satisfaction of 76.3% for phone banking. There was little to split its competitors, with ANZ coming in second overall with 89.2% (mobile), 86.6% (internet), 83.2% (branch) and 76.6% (phone). Westpac followed with 87.9% (mobile), 86.1% (internet), 82.1% (branch) and the highest of the big four for phone banking (79.4%). NAB rounded out the big four with 89.8% (mobile), 86.5% (internet), 81.5% (branch) and 77.3% (phone). This new data comes from Roy Morgan Single Source, Australia’s most comprehensive consumer survey, derived from in-depth interviews with over 60,000 Australians each year.

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

CBA unveils $2bn share buyback

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Original article by Joyce Moullakis
The Australian – Page: 13 & 24 : 10-Feb-22

The Commonwealth Bank of Australia has posted a 2021-22 interim cash profit of $4.75bn, which is 23 per cent higher than previously. The result was boosted by strong growth in mortgage and business loans and a decline in bad debts. However, the bank’s net interest margin fell by 17 basis points to 1.92 per cent. Shareholders will receive a fully franked interim dividend of $1.75 per share, while CBA will repurchase $2bn worth of its shares. CEO Matt Comyn has flagged the possibility of returning more capital to shareholders.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Economists give Lowe a pass for 2021, except for one thing

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Original article by Ronald Mizen
The Australian Financial Review – Page: 3 : 7-Jan-22

A survey of 23 economists regarding their views on the performance of the Reserve Bank in 2021 has seen RBA governor Philip Lowe score 72.5 per cent for his leadership. The RBA scored 76 per cent on management of monetary policy, while its communication of policy and intentions scored 66 per cent. The only area in which the economists felt that the RBA failed was in regards to its termination of its policy to suppress the yield on three-year Treasury bonds, which received only 41 per cent support.

CORPORATES
RESERVE BANK OF AUSTRALIA

New Covid variant could hit RBA’s plans to taper

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Original article by Ronald Mizen
The Australian Financial Review – Page: 8 : 22-Dec-21

The minutes of the Reserve Bank of Australia’s monthly board meeting for December show that the central bank remains upbeat about the outlook for the economy. The RBA does not expect the new Omicron variant of COVID-19 to "derail" the nation’s economic recovery. However, the variant may affect the RBA’s timetable for winding back quantitative easing.

CORPORATES
RESERVE BANK OF AUSTRALIA