K62 Finance

ANZ ditches forecast for RBA rate increases

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Original article by David Rogers
The Australian – Page: 21 : 14-Mar-19

The ANZ Bank has scaled back its expectations for official interest rate rises in the near-term, forecasting that the cash rate will remain at 1.5 per cent until 2021. ANZ had previously expected two increases in the cash rate during 2020. ANZ’s David Plank says economic indicators other than GDP growth need to be taken into account when forecasting monetary policy, including labour market data. He adds that the Reserve Bank could act quickly to reduce the cash rate if signs of weakness in the labour market emerge.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK HEALTH SOCIETY LIMITED, WESTPAC BANKING CORPORATION – ASX WBC

ING gains as customers flee the big banks

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 14-Mar-19

The number of customers for whom ING Australia is their main bank has risen by 57 per cent in the last year, to 645,000. This compares with just 100,000 customers in 2013. ING Australia CEO Uday Sareen says positive advocacy from the digital-only bank’s existing customers has been a major of its recent growth, which has also coincided with the Hayne royal commission. ING Australia booked a statutory net profit of $401m in 2018, an increase of 15 per cent, while deposits grew by nine per cent to $43.4bn.

CORPORATES
ING AUSTRALIA HOLDINGS LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, BANK OF QUEENSLAND LIMITED – ASX BOQ, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, APPLE PAY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC

NAB customers get $110m compo

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Original article by Richard Gluyas
The Australian – Page: 19 & 23 : 13-Mar-19

National Australia Bank has disclosed that 310,000 customers have collectively been paid $110m over the fee-for-no-service scandal since mid-2018. Acting CEO and chairman-elect Phil Chronican has also used a letter to shareholders to concede that much more work needs to be done at NAB, and he has stressed the need to ensure that the bank always get things right for customers. Meanwhile, chief people officer Lorraine Murphy has become the first NAB executive to resign since the recent leadership changes.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AMP LIMITED – ASX AMP, MACQUARIE GROUP LIMITED – ASX MQG

Banks get a damning ASIC report card

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Original article by Misa Han
The Australian Financial Review – Page: 15 & 18 : 12-Mar-19

Australia’s four major banks and AMP have set aside over $1 billion to compensate customers who were impacted by the fee-for-no-service scandal. However, along with Macquarie, they have been attacked by the Australian Securities & Investments Commission for the time it is taking them to identify and compensate customers who were affected by the scandal. ASIC has also criticised the big four banks, AMP and Macquarie for not conducting further reviews of the systemic failures that led to the scandal in the first place.

CORPORATES
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, AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MACQUARIE GROUP LIMITED – ASX MQG, RESERVE BANK OF AUSTRALIA, CLSA AUSTRALIA PTY LTD

Westpac, CBA flooded with new customer complaints

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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

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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

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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

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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

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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

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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