K62 Finance

CBA reels from credit card bungle

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Original article by James Frost
The Australian Financial Review – Page: 1 & 4 : 20-Mar-18

The banking royal commission has been told that the Commonwealth Bank kept back certain information regarding its credit card plus product from the Australian Securities & Investments Commission. ANZ executive William Ranken has also told the royal commission that the bank did not examine the expenses of every prospective mortgage customer, but instead made use of the household expenditure measure benchmark.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMINSURE

Comyn pledges to fix commission problems

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Original article by James Thomson
The Australian Financial Review – Page: 17 : 19-Mar-18

Incoming Commonwealth Bank of Australia CEO Matt Comyn has alerted staff in its retail division that the week beginning 19 March could be uncomfortable for them. He says that submissions made to the banking royal commission during the coming week may include examples of where the CBA treated customers poorly. Cormyn, who will take over from Ian Narev in April, has given a commitment to fix any problems that the royal commission may unearth.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Mortgage customer satisfaction higher when deal directly with bank

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Original article by Roy Morgan
Market Research Update – Page: Online : 19-Mar-18

A Roy Morgan Single Source survey, which was carried out in the six months to January 2018, has found that home loan customers’ satisfaction with banks when using a mortgage broker was only 77.3%. This compares to 80.3% when home loans were obtained in person at a branch. Even among more recent home loans (held for under six years) satisfaction with going directly into a branch was 81.7%, compared to 78.7% for mortgage brokers. Home loan customers of Bendigo Bank who obtained their loan in person at a branch had the highest satisfaction with 92.6%, followed by Bankwest (87.3%) and St George (86.8%). The best of the big four was NAB with 82.4%, followed by ANZ (79.7%). All of the largest banks, with the exception of Westpac, had higher satisfaction when going direct rather than using mortgage brokers. Meanwhile, satisfaction when using mortgage brokers was highest for St George with 85.6%, Bankwest (82.1%) and Suncorp Bank (82.0%). Each of the big four were below the market average (77.3%) for home loan customer satisfaction when using a mortgage broker, with the best of them being NAB (76.4%) and Westpac (75.7%).

CORPORATES
ROY MORGAN LIMITED, BENDIGO BANK, BANK OF WESTERN AUSTRALIA LIMITED, ST GEORGE BANK LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, SUNCORP BANK

End is nigh for big four: Carnegie

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Original article by Glenda Korporaal
The Australian – Page: 29 : 16-Mar-18

Maile Carnegie, the ANZ Bank’s group executive for digital banking, forecasts that the four major banks will no longer dominate the Australian market within 5-10 years, with banks opting to focus on certain segments of the market. She also forecasts a greater role for technology in delivering banking services, while banks that provide services that customers actually want will be the most successful in future.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, GOOGLE AUSTRALIA PTY LTD, AMAZON.COM INCORPORATED, ALIBABA.COM CORPORATION, UBER AUSTRALIA PTY LTD, APPLE INCORPORATED

NAB first up at banking royal commission

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Original article by James Eyers
The Australian Financial Review – Page: 3 : 13-Mar-18

National Australia Bank executive Anthony Waldron is scheduled to be the first banker to appear before the financial services royal commission. He is expected to be quizzed about NAB’s "introducer program" and fraudulent mortgage loan applications. It is understood that he will tell the commission that NAB has now made the eligibility criteria for the program more stringent. Waldron is also expected to rebut claims by the Finance Sector Union that NAB did not discipline senior staff in regard to the fradulent loan applications.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, FINANCE SECTOR UNION, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSSIE HOME LOANS LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, UBS HOLDINGS PTY LTD

CBA executive was warned of possible BBSW investigation

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Original article by Ben Butler, Michael Roddan
The Australian – Page: 19 & 23 : 9-Mar-18

The Federal Court has released documents filed by the Australian Securities & Investments Commission in its case against the Commonwealth Bank of Australia for allegedly manipulating the bank bill swap rate. The documents show that CBA executives and employees had discussed influencing the BBSW as far back as 2001. Amongst other things, CBA executive Paul Bennett told former treasurer Lyn Cobley in 2011 that "aggressive" behaviour in the BBSW market by a rival bank could attract regulatory scrutiny.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, FEDERAL COURT OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, PIMCO AUSTRALIA PTY LTD, HSBC AUSTRALIA HOLDINGS PTY LTD

What would it take to get the Reserve Bank moving in 2018?

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Original article by Patrick Commins
The Australian Financial Review – Page: 27 : 8-Mar-18

There is speculation that the Reserve Bank may increase the cash rate in November 2018, although economists generally expect rates to remain on hold until 2019. Regardless, a rate rise in the near-term is unlikely, and the central bank seems certain to break its record for the longest consecutive run of board meetings with no change in monetary policy. Meanwhile, Chris Nicol and Daniel Blake of Morgan Stanley say that wages growth would be the key factor that would prompt the Reserve Bank to increase the cash rate in 2018.

CORPORATES
RESERVE BANK OF AUSTRALIA, MORGAN STANLEY AUSTRALIA LIMITED, CITIGROUP PTY LTD, TD SECURITIES, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

APRA relaxes as home boom ends

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Original article by Michael Roddan
The Australian – Page: 17 & 22 : 2-Mar-18

Australian Prudential Regulation Authority chairman Wayne Byres has told a Senate committee that the slowing residential property market may reduce the need to cap annual growth in lending to investors. The latest data shows that there has been a sharp fall in lending to investors, while credit growth across the economy has also slowed. However, a number of lenders have recently moved to reduce the interest rates on their interest-only investment loans. Morgan Stanley forecasts a further slowdown in both credit growth and the housing market.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, MORGAN STANLEY AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD, MORTGAGE CHOICE LIMITED – ASX MOC, ING BANK (AUSTRALIA) LIMITED, MACQUARIE BANK LIMITED – ASX MBL, BANK OF QUEENSLAND LIMITED – ASX BOQ, VIRGIN MONEY (AUSTRALIA) PTY LTD, ADELAIDE BANK, CORELOGIC AUSTRALIA PTY LTD, DIGITAL FINANCE ANALYTICS, AUSTRALIA. PRODUCTIVITY COMMISSION

Private equity upbeat on deals, record capital

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 17 & 20 : 2-Mar-18

Bain & Company has released a report which notes that the global private equity industry had some $US633bn worth of funds to invest at the end of 2017. Meanwhile, private equity experts who attended the annual Asian Venture Capital Journal conference are positive about the outlook for deal-making in Australia during 2018. Data from Dealogic shows that $US1bn ($A1.3bn) worth of deals were made in the first two months of the year.

CORPORATES
BAIN AND COMPANY, PACIFIC EQUITY PARTNERS PTY LTD, KKR AND COMPANY LP, I-MED/MIA NETWORK LIMITED, LIFEHEALTHCARE GROUP LIMITED – ASX LHC, DEALOGIC (AUSTRALIA) PTY LTD, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, BGH CAPITAL PTY LTD

Uncanny resemblance between today’s sharemarket and 1987

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Original article by Karen Maley
The Australian Financial Review – Page: 31 : 2-Mar-18

Independent strategist Russell Napier says growth in M2 money supply in the US has fallen significantly in 2018, noting the parallels with US money supply in the year leading up to the sharemarket crash in October 1987. The rise in the yield on US 10-year bonds in 2018 has also mirrored the upward trend in 1987, albeit to a much lower level. At around 2.9 per cent, the bond yield is still well below the 1987 peak of 10.1 per cent, but Napier points out that the recent rise has been much larger in percentage terms.

CORPORATES
DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. CONGRESSIONAL BUDGET OFFICE