K62 Finance

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

Kiwibank tops New Zealand customer satisfaction ratings

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Original article by Roy Morgan
Market Research Update – Page: Online : 2-Mar-18

A Roy Morgan Single Source survey has found that Kiwibank had the highest satisfaction rating of the largest New Zealand banks in the year to December 2017. Kiwibank had a rating of 83.9%, compared with 82.6% in 2016. Overall consumer satisfaction with banks in New Zealand was 78.2%, up from 77.1% in the previous year. Of the largest New Zealand banks, six showed improved satisfaction, with the biggest gains coming from BNZ (up 2.2% points to 79.6%) and ANZ (up 2.0% point to 79.6%). Meanwhile, of the largest banks considered by customers to be their main financial institution, TSB Bank customers with 91.7%, have the highest likelihood (high advocates) of recommending them to a friend or colleague. They are followed by The Co-Operative Bank (86.6%) and Kiwibank (73.3%).

CORPORATES
ROY MORGAN LIMITED, KIWIBANK LIMITED, BANK OF NEW ZEALAND, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, TSB BANK LIMITED, CO-OPERATIVE BANK

Satisfaction with banks up again in January

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Original article by Roy Morgan
Market Research Update – Page: Online : 28-Feb-18

New research from Roy Morgan shows that customer satisfaction with Australia’s banks in the six months to January 2018 was 81.2%, up from 80.8% in December. This is the best figure seen since June 2017, and it is now well above the long-term average of 73.8% calculated since 2001. The Commonwealth Bank again had the highest customer satisfaction rating of the big four in December (up 0.5 % at 80.1%), followed by NAB (up 0.5% to 79.1%). However, Bendigo Bank (88.4%) had the highest customer satisfaction rating among the 10 largest consumer banks, followed by Bank of Queensland (85.8%). Meanwhile, the mortgage customers of the smaller banks continue to have higher satisfaction ratings than the big four.

CORPORATES
ROY MORGAN LIMITED, 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, BENDIGO BANK, BANK OF QUEENSLAND LIMITED – ASX BOQ, ING BANK (AUSTRALIA) LIMITED, BANK OF WESTERN AUSTRALIA LIMITED, ST GEORGE BANK LIMITED, SUNCORP BANK

Satisfaction with banks up again in January

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Original article by Roy Morgan
Market Research Update – Page: Online : 28-Feb-18

New research from Roy Morgan shows that customer satisfaction with Australia’s banks in the six months to January 2018 was 81.2%, up from 80.8% in December. This is the best figure seen since June 2017, and it is now well above the long-term average of 73.8% calculated since 2001. The Commonwealth Bank again had the highest customer satisfaction rating of the big four in December (up 0.5 % at 80.1%), followed by NAB (up 0.5% to 79.1%). However, Bendigo Bank (88.4%) had the highest customer satisfaction rating among the 10 largest consumer banks, followed by Bank of Queensland (85.8%). Meanwhile, the mortgage customers of the smaller banks continue to have higher satisfaction ratings than the big four.

CORPORATES
ROY MORGAN LIMITED, 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, BENDIGO BANK, BANK OF QUEENSLAND LIMITED – ASX BOQ, ING BANK (AUSTRALIA) LIMITED, BANK OF WESTERN AUSTRALIA LIMITED, ST GEORGE BANK LIMITED, SUNCORP BANK

ASIC expands rate-rigging case at CBA

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Original article by Patrick Durkin
The Australian Financial Review – Page: 11 : 27-Feb-18

The Australian Securities & Investments Commission is now alleging that Commonwealth Bank traders tried to manipulate the interbank lending rate on six occasions. It had previously only contended that such manipulation had occurred on three dates. National Australia Bank and the ANZ Bank have already paid fines to settle their cases with ASIC, while Federal Court Justice Jonathan Beach is expected to soon hand down his decision in regard to ASIC’s case against Westpac.

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

ANZ ramps up home loan growth in mortgage race

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Original article by James Frost
The Australian Financial Review – Page: 19 : 21-Feb-18

The ANZ Bank has advised that its mortgage lending grew at a faster than the broader sector in the December 2017 quarter. However, the number of residential home loans that are in arrears increased from 0.59 per cent to 0.60 per cent quarter-on-quarter. ANZ’s quarterly statement on bank capital also shows that its customers continued to switch from interest-only loans principal-and-interest loans during the quarter, while its common equity tier one capital ratio rose from 10.57 per cent to 10.82 per cent.

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