K62 Finance

Two-year freeze on bush bank closures

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Original article by David Ross
The Australian – Page: 7 : 12-Feb-25

Treasurer Jim Chalmers says the banking sector has agreed to retain all existing branch banks in regional areas until at least mid-2027. The deal to extend the moratorium on branch closures for two years has coincided with a recent move by three of the major banks to renew their deal to provide banking services via Australia Post outlets. Australian Banking Association CEO Anna Bligh notes that despite the growing shift to online banking, many customers in regional areas still prefer to use branches.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN BANKING ASSOCIATION, AUSTRALIA POST

New trends in banking: Digital banks and Macquarie gaining ground in 2024

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Original article by Roy Morgan
Market Research Update – Page: Online : 12-Feb-25

New data on customers’ choices in banking from Roy Morgan’s Single Source survey shows that more Australians turned to newer digital banks, and Macquarie, as their Main Financial Institution (MFI) in 2024. Some 32.8% of Australians considered Commonwealth Bank to be their MFI in 2024. ANZ holds second place at 11.6%, followed by Westpac at 11.4% and NAB at 11.2%. Together, the big four banks make up 67.0% of MFI Share, down 0.6% from 2023. ING, ranked fifth, also saw a slight decline to 4.3%. Newer digital banks like ANZ Plus, ME Bank, Ubank and Up have increased their MFI Share by 0.3% to 2.0%. Macquarie Bank saw a rise of 0.4% to 1.5%, gaining ground across all age groups. Macquarie’s growth in MFI Share coincides with its increase in mortgages and deposits share. These latest banking MFI ratings 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 OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ANZ PLUS, ME BANK, UBANK, UP, ING BANK (AUSTRALIA) LIMITED, MACQUARIE BANK LIMITED

NAB cuts rates ahead of Reserve

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Original article by Cameron Micallef
The Australian – Page: 19 : 4-Feb-25

National Australia Bank has pre-empted the Reserve Bank’s upcoming monetary policy decision by reducing some of its mortgage interest rates. NAB has become the first major bank to cut its fixed interest rates in 2025, although Sally Tindall from Canstar expects rival banks to do so as well. Canstar notes that NAB has reduced its fixed rates for owner-occupiers by up to 0.25 percentage points, while fixed interest rates for property investors have been cut by up to 0.3 percentage points. The RBA is widely tipped to reduce the cash rate at its board meeting in mid-February.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA, CANSTAR PTY LTD

Risk of mortgage stress up again in December after Reserve Bank again decided not to cut interest rates

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Original article by Roy Morgan
Market Research Update – Page: Online : 30-Jan-25

New research from Roy Morgan shows that 1,595,000 mortgage holders (27.9) were ‘At Risk’ of ‘mortgage stress’ in December 2024. This represents a second straight monthly increase since October but is still 2.4% lower than the June figures prior to the Stage 3 income tax cuts. Modelling by Roy Morgan shows that the number of mortgages ‘At Risk’ will fall by 26,000 in February 2025 to 1,569,000 (27.4% of mortgage holders) if the Reserve Bank drops interest rates to 4.10% at its first board meeting for the year. The number of Australians ‘At Risk’ of mortgage stress has increased by 788,000 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 973,000 (17.4% of mortgage holders), which is significantly above the long-term average over the last 10 years of 14.6%. 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

Union demands action over bank branch closures

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Original article by David Ross
The Australian – Page: 14 : 22-Jan-25

The Finance Sector Union’s national secretary Julia Angrisano has urged federal government intervention to ensure that consumers still have access to bank branches. Data from the Australian Prudential Regulation Authority shows that 2,334 branches have been closed nationwide over the last seven years. The Bank of Queensland recently advised that it will close another 14 branches, in addition to several that were already slated to close. Agrisano says the government has failed respond to a review of banking in regional areas, where many people no longer have access to branch banks.

CORPORATES
FINANCE SECTOR UNION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BANK OF QUEENSLAND LIMITED – ASX BOQ

ANZ probed on account interest

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Original article by Joyce Moullakis, David Ross
The Australian – Page: 13 & 14 : 22-Jan-25

The ANZ Bank is believed to be under renewed scrutiny by the Australian Securities & Investments Commission, in the wake of recent claims that it deducted fees from the accounts of customers who had died. ANZ has now been accused of incorrectly calculating the interest on a range of savings and deposit accounts, including bonus interest rates. ANZ was embroiled in a similar scandal in 2015, when it was forced to compensate customers regarding the bonus interest they received over a seven-year period.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Faltering dollar unlikely to sway Reserve Bank rates call

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Original article by Cameron Micallef
The Australian – Page: 19 : 22-Jan-25

The Australian dollar fell sharply on Tuesday, after US President Donald Trump signalled that a tariff of 25 per cent could be imposed on imports from Canada and Mexico from the start of February. However, AMP’s chief economist Shane Oliver says the recent downturn in the value of the currency is unlikely to influence the Reserve Bank’s interest rate decision in February. Oliver contends that quarterly inflation data to be released in late January will be the key factor that the central bank will take into account.

CORPORATES
AMP LIMITED – ASX AMP, RESERVE BANK OF AUSTRALIA, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Risk of mortgage stress up in November after Reserve Bank decides not to cut interest rates

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Original article by Roy Morgan
Market Research Update – Page: Online : 15-Jan-25

New research from Roy Morgan shows that 1,514,000 mortgage holders (26.8%) were ‘At Risk’ of ‘mortgage stress’ in November 2024. This represents a small increase on October but is 3.5% lower than the June figures prior to the Stage 3 tax cuts. Modelling by Roy Morgan shows that the number of mortgages ‘At Risk’ will fall by 26,000 in February 2025 to 11,488,000 (26.3% of mortgage holders) if the Reserve Bank drops interest rates to 4.10% at its first board meeting for the year. The number of Australians ‘At Risk’ of mortgage stress has increased by 707,000 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 931,000 (16.9% of mortgage holders), which is significantly above the long-term average over the last 10 years of 14.6%. 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

Watchdog probes fee theft from dead people: ANZ in more strife

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Original article by Joyce Moullakis, David Ross
The Australian – Page: 1 & 2 : 18-Dec-24

The ANZ Bank’s board is likely to face more pressure to address compliance issues in the wake of allegations that fees were deducted from the accounts of customers who had died. Sources have indicated that the Australian Securities & Investments Commission is considering enforcement action against ANZ’s retail banking arm in response to the scandal. Helen Bird from Swinburne University says it is "surprising and disappointing" that scandals of this nature are still occurring more than five years after AMP came under scrutiny by the Hayne royal commission for engaging in this conduct.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, SWINBURNE UNIVERSITY OF TECHNOLOGY

Outsider to lead ANZ into new era

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Original article by Lucas Baird, James Eyers
The Australian Financial Review – Page: 1 & 17 : 10-Dec-24

The ANZ Bank has advised that Nuno Matos will succeed CEO Shayne Elliott in mid-2025. Matos was previously the head of wealth management and personal banking at HSBC; he had also been considered for the role of CEO at Westpac, although the major bank opted to replace Peter King with internal candidate Anthony Miller. High Dive from Atlas Funds Managements says an external appointment will be able to help resolve cultural issues at ANZ. These include a bond trading scandal in its markets division, which effectively ruled out the head of institutional banking Mark Whelan as Elliott’s replacement.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, HSBC BANK PLC, ATLAS FUNDS MANAGEMENT PTY LTD