K62 Finance

Jobs to go at NAB as banks face cost squeeze

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Original article by Richard Gluyas
The Australian – Page: 19 : 20-Apr-17

Australian banks are continuing to downsize their workforces amid rising costs, falling net interest margins and new capital requirements. The ANZ Bank has advised that it shed 35 IT jobs in early 2017, while National Australia Bank recently told staff that it intends to cut about 500 jobs. However, NAB will create 400 new jobs, with some displaced staff likely to be redeployed. There was a 2.4 per cent reduction in full-time staff in Australia’s banking industry in 2015-16.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Banks take advantage and profit from ‘general advice’

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Original article by Alice Uribe
The Australian Financial Review – Page: 17 : 19-Apr-17

Financial Planning Association CEO Dante De Gori has expressed concern about the use of the term "general advice" in Australia’s financial services industry. He argues that many consumers are confused about what constitutes financial advice. The FPA advocates changing the phrase "general advice" to "general information", to ensure that consumers understand that they are being sold a financial product rather than receiving financial advice.

CORPORATES
FINANCIAL PLANNING ASSOCIATION OF AUSTRALIA LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WESTPAC BANKING CORPORATION – ASX WBC, WESTPAC SECURITIES ADMINISTRATION LIMITED, BT FUNDS MANAGEMENT

Westpac’s Maxsted talks down need for capital

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Original article by Michael Bennet
The Australian – Page: 17 & 20 : 11-Apr-17

Westpac chairman Lindsay Maxsted is confident that recent measures aimed at curbing investor-only home loans will be sufficient and additional intervention by the Australian Prudential Regulation Authority will not be necessary. Maxsted also believes that the nation’s banks will not need to undertake further equity raisings in order to comply with new capital requirements. He adds that Westpac has prudent lending practices and will not approve loan applications for customers who may be at risk of default.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, UBS HOLDINGS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MOODY’S INVESTORS SERVICE INCORPORATED, BHP BILLITON LIMITED – ASX BHP

Stars align as Aussie battler skates to fair value

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Original article by David Rogers
The Australian – Page: 31 : 17-Feb-17

The Australian dollar peaked at $US0.7732 in local trading on 16 February 2017, in response to upbeat jobs data. National Australia Bank deems $US0.777 to be "fair value" for the currency at present, and NAB’s Ray Attrill says factors such as the rise in the iron ore price have contributed to the increase in its fair value in recent weeks. The currency has also benefited from growing expectations that the Reserve Bank will not significantly reduce the cash rate during 2017.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Mixed views on dollar’s chance of hitting US80c

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Original article by David Rogers
The Australian – Page: 28 : 15-Feb-17

The Australian dollar rallied on 14 February 2017, benefiting from factors such as an upbeat business survey and a strong rise in the Chinese producer price index. The currency has reached a two-year high on a trade-weighted index basis, while it is within sight of the 2016 high of $US0.7835. However, the spot price of iron ore may not be sustainable at the current elevated level, while the gap between official interest rates in Australia and the US is likely to narrow as the Federal Reserve gears up to tighten monetary policy.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TELSTRA CORPORATION LIMITED – ASX TLS, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, JP MORGAN AUSTRALIA LIMITED

Apple Pay to take bite at big three banks

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 30 : 10-Feb-17

Macquarie Bank and ING Direct customers will have access to the Apple Pay service by the end of February 2017, but the ANZ Bank is the only "big four" bank that currently offers it. The head of Apple Pay, Jennifer Bailey, warns that the Commonwealth Bank, Westpac and National Australia Bank risk losing customers unless they embrace the global payments system. ANZ Bank has indicated that about 26 per cent of its customers use Apple Pay, while Bailey notes that Australians are now the biggest users of the service.

CORPORATES
APPLE PAY, APPLE INCORPORATED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MACQUARIE BANK LIMITED – ASX MBL, ING DIRECT, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Analysts suspect $65bn lift by big four banks has run its course

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Original article by Daniel Palmer
The Australian – Page: 21 : 13-Jan-17

Australia’s four major banks have enjoyed double-digit rises in their share prices since Donald Trump won the US presidential election. Their combined market capitalisation has risen by $A65bn in the last two months, prompting analysts to question whether the rally will continue. Jarrod Martin of Credit Suisse notes that shares in the "big four" are now close to fair value, although the firm is upbeat about the outlook for the banks. It anticipates earnings growth of four per cent and has upgraded its share price targets.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, SHAW AND PARTNERS LIMITED, BELL POTTER SECURITIES LIMITED

Resurgent $A tipped to reach US78c mark

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Original article by Timothy Moore
The Australian Financial Review – Page: 29 : 13-Jan-17

The Australian dollar peaked at $US0.7472 during the first press conference of US president-elect Donald Trump. Rodrigo Catril of National Australia Bank notes that the Australian dollar has performed better against its US counterpart than other key currencies so far in 2017. Westpac has identified the $US0.7525 level as the next target for the Australian dollar, while the ANZ Bank says it could potentially rise to $US0.78.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Mining states hit by sharp drop in home loan activity: AFG

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Original article by Michael Roddan
The Australian – Page: 15 : 12-Jan-17

Listed mortgage broker Australian Finance Group has reported 9.9 per cent growth in home loan lodgements nationwide in calendar 2016. However, there was a 16 per cent downturn in loan lodgements in Western Australia, while lodgements fell by 18 per cent in the Northern Territory. Meanwhile, AFG CEO Brett McKeon says the WA Government’s decision to temporarily increase the first-home owners’ grant by $A5,000 for new homes is unlikely to significantly boost construction activity in the residential property market.

CORPORATES
AUSTRALIAN FINANCE GROUP LIMITED – ASX AFG, REAL ESTATE INSTITUTE OF WESTERN AUSTRALIA, DIGITAL FINANCE ANALYTICS

Mortgage payments steady as rates rise

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Original article by Michael Bennet
The Australian – Page: 17 : 11-Jan-17

Data from Deutsche Bank shows that Australians’ home loan repayments now comprise around 17 per cent of their income, which is consistent with the average over the last three decades. The figures also show that mortgage payment account for 63.6 per cent of Sydney borrowers’ weekly income, compared with 45.3 per cent in Melbourne and just 27.3 per cent in Perth. Meanwhile, Paul Bloxham of HSBC says the residential construction boom is nearing its peak.

CORPORATES
DEUTSCHE BANK AG, HSBC AUSTRALIA HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUREAU OF STATISTICS, SUNCORP GROUP LIMITED – ASX SUN, ING DIRECT, DIGITAL FINANCE ANALYTICS