K62 Finance

ING home loan customers most satisfied just ahead of Bendigo Bank and Suncorp

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Original article by Roy Morgan
Market Research Update – Page: Online : 5-Jul-19

The satisfaction rating of the home loan customers of Australia’s big four banks was 71.1% in May, well below the 76.8% rating given by their non-home customers. The home loan customers of the other major banks all have much higher satisfaction than the big four and are closer to the rating given by their non-home loan customers. ING has the highest home loan customer satisfaction with 88.9%, followed by Bendigo Bank (86.2%) and Suncorp (81.0%). The CBA is the best performer among the big four with 72.5%, followed by Westpac (70.7%), NAB (70.4%) and ANZ (69.6%). These are some of the latest findings from Roy Morgan’s ‘Customer Satisfaction report on Consumer Banking in Australia’, May 2019. This report is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes and covers over two decades. The latest data in this release is for the six months to May 2019.

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

Lenders reluctant to pass on cut in full

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Original article by Joyce Moullakis
The Australian – Page: 19 : 4-Jul-19

Macquarie Bank, Suncorp, ME Bank and ING will reduce their interest rates on a range of mortgage products by less than the latest 25 basis point reduction in the cash rate. They have joined Westpac, National Australia Bank and the Commonwealth Bank in not passing on the Reserve Bank’s interest rate cut in full. However, a number of smaller lenders have reduced their mortgage rates by the full amount, including Athena, Resimac and Newcastle Permanent.

CORPORATES
MACQUARIE BANK LIMITED – ASX MBL, SUNCORP BANK, SUNCORP GROUP LIMITED – ASX SUN, ME BANK, ING BANK (AUSTRALIA) LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, ATHENA HOME LOANS PTY LTD, RESIMAC GROUP LIMITED – ASX RMC, NEWCASTLE PERMANENT BUILDING SOCIETY LIMITED, STATE CUSTODIANS PTY LTD, RACQ BANK, HOMESTAR FINANCE PTY LTD, REDUCE HOME LOANS, RATECITY PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, MORGAN STANLEY AUSTRALIA LIMITED, SHAW AND PARTNERS LIMITED

Big four rate game plan takes shape

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Original article by James Frost
The Australian Financial Review – Page: 9 : 3-Jul-19

The ANZ Bank’s s variable mortgage interest rates for all customers will be reduced by 25 basis points, in line with the Reserve Bank’s official interest rate cut. The Commonwealth Bank in turn will reduce its rates for interest-only customers by 25 basis points, although those with principal and interest loans will receive a rate cut of just 19 basis points. Meanwhile, Westpac will reduce its mortgage interest rates by 20 basis points, and the ANZ Bank’s will be cut by 19 basis points.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, ATHENA HOME LOANS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY

RBA to cut twice more, say economists

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Original article by Patrick Commins
The Australian Financial Review – Page: 1 & 18 : 1-Jul-19

A quarterly survey of economists shows that there is a widely held expectation that the Reserve Bank of Australia will reduce official interest rates two more times during 2019. This would reduce the cash rate to 0.75 per cent, but David Plank of the ANZ Banks says further rate cuts could be necessary, depending on the outlook for the global economy and the Australian dollar. David Bassanese of BetaShares says the RBA would be unlikely to take the cash rate below 0.5 per cent, and it would probably opt for quantitative easing instead. Many economists expect a rate cut on 2 July.

CORPORATES
RESERVE BANK OF AUSTRALIA, BETASHARES CAPITAL LIMITED, ST GEORGE BANK LIMITED, BIS OXFORD ECONOMICS PTY LTD, AMP CAPITAL INVESTORS LIMITED, MOODY’S ANALYTICS AUSTRALIA PTY LTD, RBC CAPITAL MARKETS, DEUTSCHE BANK AG, INDUSTRY SUPER AUSTRALIA PTY LTD

Banks to lift their game with new code

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Original article by David Rogers
The Australian – Page: 17 & 20 : 1-Jul-19

The Australian Banking Association’s updated Banking Code of Practice comes into effect on 1 July, and CEO Anna Bligh says it is an "important step" in restoring consumers’ trust in banks following the Hayne royal commission. The revised code will provide increased protection for consumers, and require banks to treat them fairly. The first phase of the open banking regime also commences on 1 July.

CORPORATES
AUSTRALIAN BANKING ASSOCIATION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, VOLT BANK LIMITED, FINANCIAL COUNSELLING AUSTRALIA LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN FINANCIAL COMPLAINTS AUTHORITY, AUSTRALIAN FINANCIAL COMPLAINTS AUTHORITY

History suggests rate cut in July unlikely

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Original article by Matthew Cranston
The Australian Financial Review – Page: 12 : 28-Jun-19

Financial markets have priced in a 72 per cent chance that the Reserve Bank of Australia will reduce the cash rate by 25 basis points in July. However, analysis shows that the central bank has reduced the cash rate in two consecutive months on just 12 of the 46 occasions on which it has eased monetary policy since 1990. The RBA has not reduced the cash rate in two consecutive months since 1992, when there were concerns about the outlook for the global economy. Chris Read of Morgan Stanley says an easing pause in July would enable the RBA to pursue a gradual cutting cycle.

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

ANZ squeezes savers more than borrowers

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Original article by James Frost
The Australian Financial Review – Page: 21 : 27-Jun-19

The ANZ Bank has defended its decision to reduce the interest rates on its popular ANZ Progress Saver and ANZ Online Saver accounts by 20 basis points. A spokesman says ANZ still has the best interest rates for comparable products among Australia’s major banks. Sally Tindall of RateCity warns that savers can expect interest rates to fall further, given that the Reserve Bank is tipped to reduce the cash rate again. ANZ reduced its mortgage interest rates by 18 basis points after the official interest rate cut in early June.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RATECITY PTY LTD, RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, UBANK, AUSTRALIA. DEPT OF THE TREASURY

Risks build as central banks push on a string

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Original article by David Rogers
The Australian – Page: 27 : 26-Jun-19

There is a growing view that further monetary policy easing will do little to stimulate economic growth. Expectations of further interest rate cuts have seen Australia’s All Ordinaries Index gain 18 per cent so far in 2019. Matthew Brooks of Macquarie Group notes that the Australian sharemarket rose by an average of 12 per cent after the first interest rate cut in eight of the 11 easing cycles since 1971, while the S&P 500 was up at least 10 per cent a year. The other three easing cycles coincided with recessions.

CORPORATES
STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, STANDARD AND POOR’S 500 INDEX, MACQUARIE GROUP LIMITED – ASX MQG, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, UNITED STATES. FEDERAL RESERVE BOARD, MORGAN STANLEY AUSTRALIA LIMITED

Westpac admits to being less mature on non-financial risks

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Original article by Richard Gluyas
The Australian – Page: 21 : 25-Jun-19

Westpac has begun to implement the recommendations arising from a self-assessment of its culture and governance, while it will also take on board any feedback from the Australian Prudential Regulation Authority. APRA requested the major banks to undertake a self-assessment in the wake of governance scandals at the Commonwealth Bank. Westpac has not released the full report of its self-assessment, but shareholders have been told that the review showed that its management of non-financial risks can be improved.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

RBNZ orders independent reviews of ANZ

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Original article by Joyce Moullakis
The Australian – Page: 21 : 25-Jun-19

The Reserve Bank of New Zealand has commissioned reviews of the ANZ Bank’s compliance with capital requirements and governance standards. The independent reviews follow the recent departure of the bank’s New Zealand CEO David Hisco after a review of his personal expense claims. Meanwhile, Mark Nathan of Regal Funds Management expects the central bank to make changes to its proposed overhaul of Australian banks’ capital requirements in response to feedback from the industry.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ANZ NATIONAL BANK LIMITED, RESERVE BANK OF NEW ZEALAND, REGAL FUNDS MANAGEMENT PTY LTD, NEW ZEALAND. FINANCIAL MARKETS AUTHORITY