K62 Finance

NAB & CBA lead business banking satisfaction but biggest increase over the last year is by ANZ

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Original article by Roy Morgan
Market Research Update – Page: Online : 10-Nov-21

New research from Roy Morgan shows that small business owner banking satisfaction for the four major banks was at 69.9% in the 12 months to September 2021, down 0.4% points from a year ago. Although virtually unchanged on a year ago, small business owner banking satisfaction for the four major banks is up 1.2% points from February 2020 (68.7%), prior to the onset of the COVID-19 pandemic. Satisfaction with National Australia Bank increased by 3.3% points from a year ago to 71.6%, and NAB now has the highest business owner banking satisfaction of the four major banks. Just behind NAB is the Commonwealth Bank, with a business owner banking satisfaction rating of 70.4%. However, the largest increase in satisfaction was achieved by the ANZ, up 5.1% points to 70.0%. Westpac is in fourth position with small business owner banking satisfaction of 66.9%. These are the latest findings from interviews with 2,443 small businesses owners in the 12 months to September 2021, as part of the Roy Morgan Business Owner Satisfaction Monitor regarding their level of satisfaction with the financial institution they deal with.

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

ACCC green-lights Afterpay megadeal

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Original article by James Eyers, Jonathan Shapiro
The Australian Financial Review – Page: 20 : 6-Nov-21

The Australian Competition & Consumer Commission has advised that it will not oppose the acquisition of ‘buy now, pay later’ provider Afterpay by US-based Square. The proposed $39bn deal will now be put to a virtual special meeting of Afterpay’s shareholders on 6 December, and chair Elana Rubin has urged them to support the transaction. The deal has also been approved by US antitrust regulators, and it is expected to be cleared by the Foreign Investment Review Board ahead of the shareholders’ meeting.

CORPORATES
AFTERPAY LIMITED – ASX APT, SQUARE INCORPORATED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

‘Disappointing’: Big four banks to skip financial crime inquiry

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Original article by Charlotte Grieve
The Sydney Morning Herald – Page: Online : 8-Nov-21

Labor Senator Deb O’Neill says it is "disappointing" that none of the big four banks have taken up an invitation to appear before a Senate inquiry into the effectiveness of Australia’s anti-money laundering regime. O’Neill was the instigator of the inquiry, which is looking at issues such as expanding the AML regime to cover professions such as lawyers and accountants, along with the effectiveness of the Australian Transaction Reports & Analysis Centre, which is the regulator of the AML regime. The big four banks – the Commonwealth Bank, Westpac, the ANZ and the National Australia Bank – will instead be represented at the inquiry by the Australian Banking Association.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Judo kicks in first bank float in 25 years

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Original article by Aleks Vickovich, William McInnes
The Australian Financial Review – Page: 15 : 2-Nov-21

Judo Capital Holdings’ shares closed at $2.26 on 1 November, compared with an issue price of $2.10. The owner of Judo Bank now has a market capitalisation of $2.5bn, making it Australia’s 162nd-biggest listed company. CEO Joseph Healy says Judo has a unique banking business model, and he emphasises that it does not regard itself as a fintech. Judo is focused on lending to small and medium enterprises, and it boasts a loan book worth around $4.4bn.

CORPORATES
JUDO CAPITAL HOLDINGS LIMITED – ASX JDO, JUDO BANK PTY LTD

NAB boosts staff to reduce crime risk

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Original article by Joyce Moullakis
The Australian – Page: 17 : 26-Oct-21

National Australia Bank has ramped up the number of employees who are managing financial risk in recent years. The bank employed more than 1,500 people in this area as at 31 August, compared with just 200 in 2018. In addition, NAB has advised that it spent $816.1m on improving its financial crime and fraud controls in the four years to June. CEO Ross McEwan also recently told a parliamentary economics committee that NAB is taking its obligations regarding compliance with anti-money laundering laws seriously.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Answers sought on bank closures

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Original article by Patrick Commins
The Australian – Page: 4 : 22-Oct-21

Data from the Reserve Bank of Australia shows that the number of full-service bank branches in regional and remote areas fell by 10 per cent between 2017 and 2020. This equates to about 270 branch closures. The federal government has established a Regional Banking Task Force, which will examine the impact of bank branch closures on regional communities. The taskforce will include politicians and representatives from the banking sector.

CORPORATES
RESERVE BANK OF AUSTRALIA

Economists cast doubt on central bank’s view

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Original article by Cecile Lefort
The Australian Financial Review – Page: 27 : 20-Oct-21

The minutes of the Reserve Bank of Australia’s latest monthly board meeting show that it still expects the cash rate to remain on hold until 2024, when inflation is forecast to be sustainably within its target range of 2-3 per cent. However, the consensus of economists is that the central bank will begin tightening monetary policy in mid-2023. Judo Bank’s chief economist Warren Hogan says the first rate rise could potentially be in November 2022, while Su-Lin Ong of RBC Capital Markets expects a rate rise in the December 2023 quarter.

CORPORATES
RESERVE BANK OF AUSTRALIA, JUDO BANK PTY LTD, RBC CAPITAL MARKETS

Westpac takes $1.3b profit hit on write-downs

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Original article by James Eyers
The Australian Financial Review – Page: 15 & 20 : 13-Oct-21

Westpac has advised that a $965m writedown associated with its institutional banking division will reduce its profit for the second half of 2020-21 by $1.3bn. Westpac will also make further provision of $172m for customer remediation and potential legal action in the wake of the Hayne royal commission. Westpac’s common equity tier 1 capital ratio will be reduced by 15 basis points as a result of the writedowns. Meanwhile, the Commonwealth Bank has indicated that its own its remedial action plan has been completed, more than three years after entering into an enforceable undertaking with the prudential regulator.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

CBA tops complaint list for third straight year

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Original article by Michael Read
The Australian Financial Review – Page: 6 : 12-Oct-21

Data from the Australian Financial Complaints Authority shows that it received a total of 67,613 complaints from customers of financial services providers in 2020-21. This follows a record 76,874 complaints in the previous financial year. About 25 per cent of all complaints were about the nation’s four major banks, with the Commonwealth Bank of Australia topping the list with 5,815 complaints. A CBA spokesman says the number of complaints it received fell by 11 per cent in 2020-21, while it resolved almost two-thirds of complaints without needing to refer them to the ACFA.

CORPORATES
AUSTRALIAN FINANCIAL COMPLAINTS AUTHORITY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

ING home loan customers are the most satisfied with their bank, followed by Suncorp, Bendigo Bank and BankSA

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Original article by Roy Morgan
Market Research Update – Page: Online : 29-Sep-21

New financial data from Roy Morgan shows that ING has maintained its lead at the top of banking customer satisfaction ratings among home loan customers in mid-2021. ING’s satisfaction rating rose 2.6% points year-on-year to 91.3% in August 2021. ING was followed by Suncorp on 90.3% (up 3.9% points on a year ago), Bendigo Bank on 89.1% (up 0.1% points) and BankSA on 87.3% (up 11% points). The latest data covers the six months to August 2021; overall home loan customer satisfaction amongst Australia’s top 12 banks collectively was at 77.9% during this period. This represents a decrease of 0.5% points from a year ago when there was significant financial support being offered to hundreds of thousands of home loan customers in the form of deferred loans. CBA once again has the highest home loan customer satisfaction among the big four banks, with a rating of 78.7%. Average home loan customer satisfaction with the big four banks as a group is 75.9%. These latest banking satisfaction ratings come from the Roy Morgan Single Source survey, derived from in-depth interviews with over 50,000 Australians each year.

CORPORATES
ROY MORGAN LIMITED, ING BANK (AUSTRALIA) LIMITED, SUNCORP BANK, BENDIGO BANK, BANK OF SOUTH AUSTRALIA LIMITED