K62 Finance

Westpac, CBA flooded with new customer complaints

roymorgansocial Leave a comment

Original article by James Eyers, James Frost
The Australian Financial Review – Page: Online : 9-Mar-19

There are now nearly 1,000 outstanding customer complaints against the Commonwealth Bank, with new complaints surging in the wake of the banking royal commission. The number of such complaints against Westpac is 1,800. Westpac CEO Brian Hartzer has suggested one of the reasons for the surge in complaints has been publicity concerning the new Australian Financial Complaints Authority. Both Hartzer and CBA CEO Matt Comyn are supportive of moves that would assist consumers and community lawyers to take actions against banks.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN FINANCIAL COMPLAINTS AUTHORITY

Chronican to steer NAB out of trouble

roymorgansocial Leave a comment

Original article by Richard Gluyas
The Australian – Page: 17 & 21 : 7-Mar-19

National Australia Bank’s interim CEO Phil Chronican will succeed Ken Henry as chairman. There had been speculation that Chronican could be a contender to replace Andrew Thorburn as CEO, but Chronican says he did not want to commit to the arduous role of CEO on a permanent basis. Chronican adds that he does not expect the process of recruiting Thorburn’s successor to take very long. Henry and Thorburn both resigned following the release of the Hayne royal commission’s final report, which heavily criticised both men.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Dollar dives on expected cut to RBA cash rate

roymorgansocial Leave a comment

Original article by David Rogers
The Australian – Page: 17 & 27 : 7-Mar-19

The Australian dollar fell to a two-month low in local trading on 6 March, in response to the latest GDP data, while the money market has now fully priced in an official interest cut by October. Meanwhile, Reserve Bank governor Philip Lowe has told a business summit that the central bank still has the flexibility to raise or lower the cash rate as required. He also said the downturn in house prices is unlikely to affect economic growth.

CORPORATES
RESERVE BANK OF AUSTRALIA, STANDARD AND POOR’S ASX 200 INDEX, JP MORGAN AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, WESTPAC BANKING CORPORATION – ASX WBC, UBS HOLDINGS PTY LTD, AMP LIMITED – ASX AMP, NOMURA AUSTRALIA LIMITED, CAPITAL ECONOMICS LIMITED

Morgan backs broker fee reform

roymorgansocial Leave a comment

Original article by Richard Gluyas
The Australian – Page: 17 & 18 : 4-Mar-19

David Morgan has stepped down as deputy chairman of Dutch bank NIBC after eight years. Morgan notes that the mortgage broking industry in the Netherlands had survived after commissions were replaced by borrower-paid fees, and he does not see why the same system, as recommended by the banking royal commission, should not work in Australia. Morgan, a former CEO of Westpac, does not believe that it will take the banks as long to regain trust as some have speculated.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, NIBC BANK NV, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, IOOF HOLDINGS LIMITED – ASX IFL, AMP LIMITED – ASX AMP, AUSTRALIA. DEPT OF THE TREASURY

Mortgage customers more satisfied dealing with banks than mortgage brokers

roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 4-Mar-19

A Roy Morgan Single Source survey for the six months to January 2019 shows that home loan customers who obtained their loan in person at a bank branch had a satisfaction rating of 77.2%, compared to 75.1% for those who used a mortgage broker. Dealing in person with a mobile bank representative had the highest level of satisfaction, at 80.6%. It is important to note that even among more recent home loans (held for under six years), satisfaction with going to a branch to obtain the loan was 79.8%, compared to 77.7% for mortgage brokers. Among the largest home loan banks, St George has the highest satisfaction with loans obtained through mortgage brokers (83.9%), closely followed by Bankwest (81.0%). Satisfaction among those obtaining their home loan through a branch was the highest for Bendigo Bank with 89.6%, well ahead of St George on 79.6%. The Single Source survey is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes, including over 12,000 mortgage holders.

CORPORATES
ROY MORGAN LIMITED, ST GEORGE BANK LIMITED, BANKWEST, BENDIGO BANK

Mobile banking highest customer satisfaction

roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 4-Mar-19

Mobile banking is the most rapidly growing banking channel, and this is supported by the fact that it has the highest customer satisfaction. In January 2019, satisfaction with mobile banking users was 89.3% and higher than internet banking (87.7%), branches (85.2%), personal banker/advisor (81.2%) and phone banking (77.2%). Mobile banking is now used by 44.7% of Australians in an average four-week period, compared to only 22.9% who use branches. All four of the major banks’ customers have higher satisfaction with their mobile banking compared to those using branches. Internet banking users also have higher satisfaction than those using branches, but on average remain a little below that of mobile bankers. These are some of the latest findings from Roy Morgan’s ‘Service Satisfaction Report-Consumer Banking Market January 2019’. This report is based on data collected from Roy Morgan’s Single Source survey, which involves in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes.

CORPORATES
ROY MORGAN LIMITED

RBNZ could end big four’s NZ super profits

roymorgansocial Leave a comment

Original article by Sarah Turner
The Australian Financial Review – Page: 21 : 1-Mar-19

New Zealand has traditionally been a cash cow for Australia’s major banks, but experts warn that profit growth could be dampened by the Reserve Bank of New Zealand’s proposal to increase their capital requirements. Westpac has warned that any move to impose higher capital buffers could push up interest rates on loans and result in a downturn in deposit rates. The RBNZ has downplayed concerns that it proposal may prompt Australian banks to exit the NZ market.

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

Big four may mull NZ exit due to capital call

roymorgansocial Leave a comment

Original article by Sarah Turner
The Australian Financial Review – Page: 19 : 28-Feb-19

Brian Johnson of CLSA and Jonathan Mott of UBS have warned that Australia’s four major banks could seek to divest their New Zealand subsidiaries if the nation’s central bank presses ahead with plans to increase their capital requirements. However, the Reserve Bank of New Zealand has downplayed such suggestions, arguing that the nation’s banks are among the most profitable in the world. Mott does not expect the RBNZ to back down on its proposal.

CORPORATES
RESERVE BANK OF NEW ZEALAND, CLSA AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD

‘Flawed but not illegal’: NAB digs in over fees for no service

roymorgansocial Leave a comment

Original article by James Frost
The Australian Financial Review – Page: 15 & 20 : 26-Feb-19

The Australian Securities & Investments Commission’s case against National Australia Bank over claims that it charged customers for services that were not provided is due to go to court in May. NAB has conceded that it did the wrong thing in regard to customers who were not linked to a financial adviser, but the bank has rejected claims that it was in the wrong in instances where the customer was linked to a financial planner. It appears to be arguing that making advice available to this second group of customers justified the charging of a fee.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MLC LIMITED

RBA could jump rates gun: UBS

roymorgansocial Leave a comment

Original article by Samantha Bailey
The Australian – Page: 28 : 26-Feb-19

UBS still expects the Reserve Bank of Australia to reduce the cash rate in November 2019 and February 2020. However, UBS has warned that there is potential for monetary policy to be eased sooner if domestic and global conditions justify such a move. These include a further downturn in house prices and a rise in the unemployment rate.

CORPORATES
RESERVE BANK OF AUSTRALIA, UBS HOLDINGS PTY LTD