K62 Finance

Rumour mill picks candidates to replace Narev

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 8 : 16-Aug-17

Brian Johnson of CLSA says the Commonwealth Bank of Australia may need to select an external candidate to succeed CEO Ian Narev, as the money-laundering scandal has tainted internal contenders. Matt Comyn and Rob Jesudason were widely regarded as leading candidates from within CBA’s ranks prior to the scandal. Former Westpac executive Rob Whitfield, Royal Bank of Scotland CEO Ross McEwan and Medibank CEO Craig Drummond are seen as potential external candidates to replace Narev when he steps down by mid-2018.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CLSA AUSTRALIA PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, ROYAL BANK OF SCOTLAND GROUP PLC, MEDIBANK PRIVATE LIMITED – ASX MPL, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, NEW SOUTH WALES. THE TREASURY, REGAL FUNDS MANAGEMENT PTY LTD, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

Bendigo Bank keeps branches open

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Original article by James Frost
The Australian Financial Review – Page: 17 : 15-Aug-17

Bendigo & Adelaide Bank’s 2016-17 cash profit was slightly below market expectations at $A418.3m, despite rising by 4.2 per cent. CEO Mike Hirst says the result was affected by a regulatory crackdown on mortgage lending. He adds that while the banking sector’s reputation has been tarnished by the Commonwealth Bank’s money-laundering scandal, Bendigo performs well in terms of trust. Hirst says its branch network and customer-facing staff will play a key role in retaining that trust.

CORPORATES
BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Livingstone ousts CEO Narev, cuts pay, puts execs on notice

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Original article by James Frost
The Australian Financial Review – Page: 1 & 8 : 15-Aug-17

The Commonwealth Bank of Australia’s board has reiterated its intention to take further action on cuts and changes to executive pay and incentives in the wake of the money laundering crisis. Its actions come as it announced that CEO Ian Narev will retire by 30 June 2018, with his successor most likely to be an external appointment. Louise Davidson, the CEO of the Australian Council of Superannuation Investors, says there are clearly some problems with the CBA’s culture, noting its recent problems involving financial planning and life insurance.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, AUSTRALIANSUPER PTY LTD, AUSBIL INVESTMENT MANAGEMENT LIMITED, OWNERSHIP MATTERS PTY LTD, UNISUPER LIMITED, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

CBA chiefs facing more salary pain

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Original article by James Frost
The Australian Financial Review – Page: 6 : 14-Aug-17

The Commonwealth Bank of Australia could announce further cuts to executive pay and incentives in the wake of the money laundering crisis. Its actions could extend to executives who are no longer with the bank but were working for it when the suspicious ATM transactions that led to AUSTRAC’s actions occurred. Alden Toevs, the CBA’s chief risk officer from 2008 to 2016, could potentially lose his rights to CBA shares, as could former chief financial officer David Craig.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

Lowe may sit on rates two years into his term

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Original article by Vesna Poljak
The Australian Financial Review – Page: 21 : 14-Aug-17

Economists polled by Bloomberg expect Australia’s official unemployment rate to have remained at 5.6 per cent in July 2017, with about 20,000 jobs created during the month. The latest jobs and wage price index data are among the key indicators to be released in the week beginning 14 August. Meanwhile, Vimal Gor of BT Investment Management expects official interest rates to remain on hold in 2018, citing factors such as low wages growth and the growing gap between business and consumer confidence.

CORPORATES
BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, RESERVE BANK OF AUSTRALIA

ANZ exec’s identity stolen for Westpac loan

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Original article by Duncan Hughes
The Australian Financial Review – Page: 7 : 11-Aug-17

The Australian Payments Network has stated that more than $A175 million worth of online payments in 2016 were the result of domestic identity fraud, an increase of 28 per cent. One victim of this type of fraud was an ANZ executive, whose stolen drivers’ licence information was used to fraudulently secure a $A30,000 loan from Westpac. The head of the Black Economy Taskforce recently stated that widespread identity theft is "systemically undermining" Australia’s banking and financial systems.

CORPORATES
AUSTRALIAN PAYMENTS NETWORK, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, VICROADS, KPMG AUSTRALIA PTY LTD

ASIC eyes case against CBA board

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Original article by Anne Hyland
The Australian Financial Review – Page: 1 & 12 : 11-Aug-17

The Australian Securities & Investments Commission may be contemplating action against Commonwealth Bank of Australia directors in regard to its money-laundering problems. Lawyers suggest that there could be certain areas that ASIC could focus on when considering such action, including the level of the CBA’s disclosure concerning AUSTRAC’s allegations against it. CBA chair Catherine Livingstone has been told that the Federal Government is still considering its options in regard to what actions to take against the bank.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, COMMINSURE, STORM FINANCIAL LIMITED, UNIVERSITY OF MELBOURNE

CBA plots next move as ability to reprice fades

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Original article by James Frost, James Eyers
The Australian Financial Review – Page: 15 & 19 : 10-Aug-17

The Commonwealth Bank of Australia has increased its full-year dividend to $A4.29 per share after posting a 2016-17 cash profit of $A9.88bn. The result was 4.6 per cent higher than previously and slightly exceeded market expectations. Earnings per share grew by 3.6 per cent to $A5.74 and CBA’s net interest margin fell three basis points to 2.11 per cent. CBA has also advised that its common equity tier one capital ratio is now 10.1 per cent, and the bank expects to achieve the revised target of 10.5 per cent well before the start of 2020.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, PM CAPITAL LIMITED, PERENNIAL VALUE MANAGEMENT LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC

CBA tipped to grind out $9.8b profit

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Original article by James Frost
The Australian Financial Review – Page: 16 : 8-Aug-17

Analysts expect the Commonwealth Bank of Australia to post a cash profit of $A4.9bn for the second half of 2016-17, an increase of 5.8 per cent, and a full-year cash profit of $A9.8bn. The banking major’s provision for bad and doubtful debts is likely to remain largely unchanged, while its net interest margin is tipped to have declined by two basis points in the second half. CBA’s earnings guidance is likely to come under scrutiny in the wake of its money-laundering scandal, while the bank is forecast to increase its dividend for the second half to $A2.24 per share.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, UBS HOLDINGS PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN

Morgan blasts Morrison’s bank tax as a grab for revenue

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 16 : 8-Aug-17

Former Westpac CEO David Morgan has dismissed claims by Treasurer Scott Morrison that the Australian Government’s levy on the nation’s five largest banks. levy will merely offset the implicit government guarantee on bank deposits. However, Morgan supports a regulatory push to ensure that banks are "unquestionably strong", but he notes that higher capital ratios are just one of the measures that are aimed at achieving this. The Chi-X Australia chairman adds that the stock exchange operator will begin offering transferable custody receipts to local investors in late 2017.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, CHI-X AUSTRALIA PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, NEW YORK STOCK EXCHANGE, NASDAQ, JC FLOWERS AND COMPANY LLC, ASX LIMITED – ASX ASX, DIGITAL ASSET HOLDINGS, DEUTSCHE BANK AG