K62 Finance

New chief Comyn pledges to restore confidence in CBA

roymorgansocial Leave a comment

Original article by Michael Roddan
The Australian – Page: 17 & 20 : 10-Apr-18

Commonwealth Bank of Australia CEO Matt Comyn has told staff that he is committed to changing the culture at the bank in the wake of a series of scandals. Comyn conceded that CBA had not done enough to protect the interests of its customers, and apologised for the mistakes made by himself and other top executives. Brett Le Mesurier of Shaw & Partners says acting on the recommendations of the banking royal commission will be a key challenge for Comyn, who formally succeeded Ian Narev as CEO on 9 April.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, SHAW AND PARTNERS LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSSIE HOME LOANS LIMITED, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, MAURICE BLACKBURN PTY LTD, UBS HOLDINGS PTY LTD, FEDERAL COURT OF AUSTRALIA

Banks betting on AI to win back trust

roymorgansocial Leave a comment

Original article by Yolanda Redrup
The Australian Financial Review – Page: 16 : 9-Apr-18

IBM executive Marc Andrews believes that Australia’s banks will be looking to make use of artificial intelligence to help restore their corporate image in the wake of the banking royal commission. IBM’s work with banks in the area of AI has focused on a number of key areas, including regulatory compliance and anti-money laundering strategies. Andrews says other areas where banks can make use of AI include helping to prevent bullying, sexism and discrimination in their workplaces, and in the identification of poor culture within teams.

CORPORATES
IBM CORPORATION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

Reputation tops Comyn’s CBA to-do list

roymorgansocial Leave a comment

Original article by James Thomson
The Australian Financial Review – Page: 13 & 16 : 9-Apr-18

Matt Comyn will formally succeed Ian Narev as CEO of the Commonwealth Bank of Australia on 9 April. His immediate priority is expected to be taking action to address the damage that a series of scandals have caused to CBA’s reputation. However, Yarra Capital Management’s MD Dion Hershan says CBA remains a strong business with a sound strategy, and any damage to its reputation is likely to be temporary. Meanwhile, Hamish Chalmers of Watermark Funds Management says reducing costs should be CBA’s priority over the next five years.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, YARRA CAPITAL MANAGEMENT, WATERMARK FUNDS MANAGEMENT PTY LTD, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, ABN AMRO BANK NV, ING BANK NV

ASIC’s Shipton warns banks to restore trust – or else

roymorgansocial Leave a comment

Original article by Joyce Moullakis, James Eyers
The Australian Financial Review – Page: 1 & 12 : 6-Apr-18

Australian Securities & Investments Commission chairman James Shipton has urged banks to adopt standards that are comparable with those of a "genuine profession". He says that if they cannot do this themselves, then ASIC is quite prepared to impose further regulations on them. His comments come during the course of the banking royal commission, which is tipped to be quite critical of the sector when it hands down its findings.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA, MORGAN STANLEY AUSTRALIA LIMITED

APRA targets banker bonuses

roymorgansocial Leave a comment

Original article by Jonathan Shapiro
The Australian Financial Review – Page: W1 & W2 : 5-Apr-18

A review of remuneration in the banking, insurance and superannuation industry shows that senior executives are rarely penalised financially for poor risk management practices or misconduct among staff within their purview. Wayne Byers, the chairman of the Australian Prudential Regulation Authority – which undertook the review – says bank executives should be held more accountable, calling for their bonuses to be deferred or forgone. Frank Mirenzi of Moody’s Investors Service notes that many countries have cracked down on executive pay in the banking sector in the wake of the global financial crisis.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, MOODY’S INVESTORS SERVICE INCORPORATED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, WESTPAC BANKING CORPORATION – ASX WBC

RBA keeps rates level for 18th meeting in row

roymorgansocial Leave a comment

Original article by Jacob Greber
The Australian Financial Review – Page: 5 : 4-Apr-18

The general consensus of economists is that the Reserve Bank of Australia will not tighten monetary policy until 2019, after the cash rate was left unchanged at 1.5 per cent on 3 April. RBA governor Philip Lowe again stressed that there is likely to be a gradual fall in the unemployment rate and a rise in the inflation rate to the central bank’s target range. He also said low growth in wages is likely to persist for some time. The RBA has not adjusted official interest rates since August 2016.

CORPORATES
RESERVE BANK OF AUSTRALIA, INDEED INCORPORATED, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

CBA captured 40pc of Aussie mortgages

roymorgansocial Leave a comment

Original article by James Frost
The Australian Financial Review – Page: 17 : 4-Apr-18

Data supplied to the banking royal commission shows that a significant proportion of home loans sold by Aussie Home Loans in 2015 were those offered by its parent company, the Commonwealth Bank of Australia. Up to 39.7 per cent of the mortgages that Aussie Home Loans sold by volume in 2015 were from brands owned by the bank, including Bankwest and Aussie Select. Likewise, 37.5 per cent of mortgage loans sold by value were from CBA-owned brands. A key issue for the royal commission has been whether mortgage brokers are acting in the interests of their customers or the banks.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSSIE HOME LOANS LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, BANK OF WESTERN AUSTRALIA LIMITED, AUSSIE SELECT

AMP and ASIC added to banking royal commission hit list

roymorgansocial Leave a comment

Original article by James Frost
The Australian Financial Review – Page: 13 : 4-Apr-18

Financial advice will be the focus of the banking royal commission’s second round of public hearings, which will commence on 9 April. While the four major banks are likely to attract further scrutiny, AMP and its subsidiaries have also been asked to appear before the inquiry, along with officials from the Australian Securities & Investments Commission and industry bodies such as the Financial Planning Association of Australia and the Association of Financial Advisers.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FINANCIAL PLANNING ASSOCIATION OF AUSTRALIA LIMITED, ASSOCIATION OF FINANCIAL ADVISERS LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMONWEALTH FINANCIAL PLANNING LIMITED, COUNT FINANCIAL LIMITED, DOVER GROUP, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RI ADVICE GROUP PTY LTD, MILLENNIUM 3 PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, BT FINANCIAL GROUP PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Regional banks seek level playing field

roymorgansocial Leave a comment

Original article by James Eyers
The Australian Financial Review – Page: 45 & 50 : 29-Mar-18

The Productivity Commission has received a joint submission from six regional banks in which they call for regulatory reforms to ensure that they remain competitive against larger rivals. Amongst other things, they have argued that the Federal Government’s implicit guarantee to bail out the "big four" in the event of a financial crisis gives them a competitive advantage when seeking funding via wholesale debt markets. The regional banks have also called for changes to the policy that requires them to have higher levels of capital for loans that have an equivalent risk.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, BANK OF QUEENSLAND LIMITED – ASX BOQ, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, AMP BANK LIMITED, SUNCORP GROUP LIMITED – ASX SUN, ME BANK, MYSTATE LIMITED – ASX MYS, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RESERVE BANK OF AUSTRALIA

NAB investors kept in dark

roymorgansocial Leave a comment

Original article by Sarah Danckert
The Age – Page: 23 : 28-Mar-18

National Australia Bank’s 2017 annual report included a contingent liability for measures aimed at ensuring compliance with anti-money laundering laws. However, the minutes of NAB’s risk committee meeting in November 2015 show that the bank was dealing with issues of non-compliance with anti-money laundering laws that had been identified by Austrac in an on-site compliance assessment in April of that year.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY