K62 Finance

Investors calm as government debt nears $1trn

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Original article by Cecile Lefort
The Australian Financial Review – Page: 25 : 3-Sep-25

Official data shows that the federal government’s debt currently stands at $961bn, while its monthly interest bill is about $2bn. Meanwhile, gross debt has risen from just five per cent of GDP to 37 per cent in the last 15 years, although this compares favourably with the US (124 per cent) and Japan (216 per cent). Robert Thompson from RBC Capital Markets expects federal government debt to top $1bn in early 2026. However, Oliver Levingston from Bank of America says Australia has low debt and low deficits compared with the majority of advanced countries. He adds that Australian government bond yields are highly attractive at present.

CORPORATES
RBC CAPITAL MARKETS, BANK OF AMERICA CORPORATION

Extreme mortgage stress eases nationally year-on-year, but surges in lowest socio-economic quintiles

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Original article by Roy Morgan
Market Research Update – Page: Online : 27-Aug-25

New research from Roy Morgan shows that an estimated 27.8% of mortgage holders were ‘At Risk’ of ‘mortgage stress’ in the year to June 2025, down from 30.3% in the previous 12 months. The proportion of Australians who are estimated to be ‘Extremely at Risk’ of mortgage stress has in turn fallen to 18.5%, down from 19.7 per cent in the year to June 2024. However, the decline in the proportion of mortgage holders at ‘Extreme Risk’ of mortgage stress was only evident among those in the top three socio-economic quintiles. Among those in the lowest two quintiles, the proportion of mortgage holders ‘at extreme risk’ of mortgage stress increased – by 5% among those in the E Quintile, and by 5.2% among those in the FG quintile. Meanwhile, mortgage holders with annual household incomes of under $100,000 are more likely to be ‘Extremely at Risk’ of mortgage stress. Only mortgage holders in households with annual incomes of $100,000 or more have seen a decline in mortgage stress. These latest findings come from the Roy Morgan Single Source survey, derived from in-depth interviews with over 60,000 Australians each year.

CORPORATES
ROY MORGAN LIMITED

Commonwealth Bank defends giving problem gambler $13k in personal loans

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Original article by Pat McGrath
abc.net.au – Page: Online : 26-Aug-25

An unnamed problem gambler has taken the Commonwealth Bank to the Australian Financial Complaints Authority, alleging that it breached its responsible lending obligations. It comes after the CBA gave the male problem gambler around $13,000 in personal loans, despite the fact that he spent over half his take-home income on online betting during the 90-day period prior to it advancing him the first of what were two loans. In its defence, the CBA stated the loans did not breach its internal policies, which block borrowers who have spent more than $10,000 on gambling in the 90 days before making a loan application.

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

‘Do the right thing’: ASIC raises pressure on CBA over refund refusal

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Original article by Clancy Yeates
The Age – Page: Online : 30-Jul-25

The Commonwealth Bank of Australia is under scrutiny after advising that it will not provide refunds to low-income customers who had been charged high account fees. Westpac and the ANZ Bank have both agreed to provide such refunds to welfare recipients in the wake of an investigation by the Australian Securities & Investments Commission. However, the CBA contends that the fees in question were disclosed to customers and charged in accordance with its terms and conditions, although it subsequently indicated that it will consider making ‘goodwill payments’ to some affected customers. ASIC chairman Joe Longo has urged CBA to avoid taking a legalistic approach to the issue, arguing that other major banks are "doing the right thing".

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

CBA slashes dozens of call centre jobs, citing new AI system rollout

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Original article by James Eyers, David Marin-Guzman
The Australian Financial Review – Page: 17 : 29-Jul-25

The Commonwealth Bank informed the Finance Sector Union last week that it will be making 45 roles in its call centre operations redundant, following the introduction of a chatbot system last month to answer customer inquiries. It is likely to be the first of many redundancies in the CBA’s call centres as a result of AI, with the CBA saying the new system has reduced the volume of call centre calls by 2,000 a week and has allowed it to concentrate its focus on upskilling its call centre team to deal with more complex customer queries

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, FINANCE SECTOR UNION

Risk of mortgage stress up in June as Australians take out bigger mortgages after interest rate cuts

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Original article by Roy Morgan
Market Research Update – Page: Online : 23-Jul-25

New research from Roy Morgan shows that 1,491,000 mortgage holders (28.4%) were ‘At Risk’ of ‘mortgage stress’ in the three months to June 2025, up 1.5% points from a month earlier. This is the highest rate of mortgage stress since January 2025, before either of the Reserve Bank’s interest rate cuts. The number of Australians ‘At Risk’ of mortgage stress has increased by 684,000 since May 2022, when the RBA began a cycle of interest rate increases. Meanwhile, the number of mortgage holders considered to be ‘Extremely At Risk’ of mortgage stress is now now numbered at 1,032,000 (19.7% of mortgage holders) which is significantly above the long-term average over the last 10 years of 14.8%. These are the latest findings from Roy Morgan’s Single Source Survey, based on in-depth interviews conducted with more than 60,000 Australians each year, including over 10,000 owner-occupied mortgage-holders.

CORPORATES
ROY MORGAN LIMITED, RESERVE BANK OF AUSTRALIA

Risk of mortgage stress unchanged in April, but set to fall in May after the Reserve Bank cuts interest rates

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Original article by Roy Morgan
Market Research Update – Page: Online : 28-May-25

New research from Roy Morgan shows that 1,429,000 mortgage holders (26.5%) were ‘At Risk’ of ‘mortgage stress’ in April 2025, unchanged from a month earlier. These figures relate to the period before last week’s interest rate cut, which is projected to reduce mortgage stress by 13,000 in May to 1,416,000 (26.3%). The number of Australians ‘At Risk’ of mortgage stress has increased by 622,000 since May 2022, when the RBA began a cycle of interest rate increases. Meanwhile, the number of mortgage holders considered to be ‘Extremely At Risk’ of mortgage stress is now numbered at 955,000 (18.0% of mortgage holders), which is clearly above the long-term average over the last 10 years of 14.7%. These are the latest findings from Roy Morgan’s Single Source Survey, based on in-depth interviews conducted with more than 60,000 Australians each year, including over 10,000 owner-occupied mortgage-holders.

CORPORATES
ROY MORGAN LIMITED, RESERVE BANK OF AUSTRALIA

Rate cuts still on the way after tariff pause

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Original article by Cecile Lefort
The Australian Financial Review – Page: 29 : 14-May-25

IFM Investors’ chief economist Alex Joiner has described the 90-day tariff pause agreed to by the US and China as a "small step forward". However, he cautions that the significant tariffs that remain in place during the temporary truce in the trade war will still be a major challenge for US households, businesses and the broader economy. Meanwhile, financial markets expect the US Federal Reserve to reduce official interest rates by 25 basis points in September; the Reserve Bank of Australia is in turn tipped to cut the cash rate three times before the end of 2025, by 85 basis points in total.

CORPORATES
IFM INVESTORS PTY LTD, UMOW LAI & ASSOCIATES PTY LTD, RESERVE BANK OF AUSTRALIA

‘Locked in’: Westpac’s big interest rate cut call

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Original article by Cameron Micallef
The Australian – Page: 23 : 29-Apr-25

Westpac’s chief economist Luci Ellis believes that the Reserve Bank of Australia is certain to reduce the cash rate by 25 basis points in May. She says a rate cut is likely even if inflation data for the March quarter is slightly disappointing. Ellis does not expect the RBA to reduce the cash rate by 50 basis points in May, although she says there is the potential for a cut of 35 basis points, which would reduce the cash rate to 3.75 per cent. Ellis also expects rate cuts in both August and November.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA

Risk of mortgage stress dropped for a second straight month in March after the Reserve Bank cut interest rates

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Original article by Roy Morgan
Market Research Update – Page: Online : 24-Apr-25

New research from Roy Morgan shows that 1,451,000 mortgage holders (26.5%) were ‘At Risk’ of ‘mortgage stress’ in March 2025. The share of mortgage holders ‘At Risk’ of ‘mortgage stress’ in March is the lowest since June 2023, when official interest rates were also at the current level of 4.1% before a final increase later that year to a 12-year high of 4.35%. The number of Australians ‘At Risk’ of mortgage stress has increased by 644,000 since May 2022, when the RBA began its cycle of interest rate increases. Meanwhile, the number of mortgage holders considered to be ‘Extremely At Risk’ of mortgage stress is now numbered at 990,000 (18.5% of mortgage holders), which is significantly above the long-term average over the last 10 years of 14.7%. These are the latest findings from Roy Morgan’s Single Source Survey, based on in-depth interviews conducted with more than 60,000 Australians each year, including over 10,000 owner-occupied mortgage-holders.

CORPORATES
ROY MORGAN LIMITED, RESERVE BANK OF AUSTRALIA