K: Financial and Insurance Services

Decade high for ASX as earnings flood in

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Original article by David Rogers
The Australian – Page: 28 : 16-Aug-18

Australia’s benchmark S&P/ASX 200 has risen to its highest level in more than a decade on the strength of the August reporting season. Investors shrugged off a negative lead from Asian markets and a downturn in base metal and crude oil prices on 15 August, although weaker commodity prices weighed on the resources sector. Meanwhile, Wilson Asset Management chairman Geoff Wilson warns that while the Trump administration’s tax cuts have boosted the US economy, the trade war with China is likely to have an impact in the next 6-12 months.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, WILSON ASSET MANAGEMENT, CSL LIMITED – ASX CSL, WESFARMERS LIMITED – ASX WES, COMPUTERSHARE LIMITED – ASX CPU, DEXUS – ASX DXS, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COCHLEAR LIMITED – ASX COH, AGL ENERGY LIMITED – ASX AGL, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, BRAMBLES LIMITED – ASX BXB, AFTERPAY TOUCH GROUP LIMITED – ASX APT, PACT GROUP HOLDINGS LIMITED – ASX PGH, HANG SENG INDEX, SHANGHAI COMPOSITE INDEX, NIKKEI 225 INDEX, STANDARD AND POOR’S 500 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, LONDON METAL EXCHANGE LIMITED, OZ MINERALS LIMITED – ASX OZL, SOUTH32 LIMITED – ASX S32, WOODSIDE PETROLEUM LIMITED – ASX WPL, RIO TINTO LIMITED – ASX RIO, WAM CAPITAL LIMITED – ASX WAM, MAGELLAN FINANCIAL GROUP LIMITED – ASX MFG, UNITED STATES. FEDERAL RESERVE BOARD, EUROPEAN CENTRAL BANK

NAB admits to breaking law once a week

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Original article by James Frost
The Australian Financial Review – Page: 10 : 15-Aug-18

A document released by the banking royal commission show that National Australia Bank breached the terms of its financial services licence a total of 297 times between 2014 and 2017. Some 110 of these breaches were deemed to be serious, yet the majority of them were not reported to the corporate regulator within 10 days. The document also shows that 84 per cent of the significant breaches that were not reported within the required time-frame occurred during the 2014-15 financial year.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD

CBA’s 15,000 crimes waved on by APRA

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Original article by Ben Butler, Michael Roddan
The Australian – Page: 18 & 23 : 15-Aug-18

The banking royal commission has been told that the Australian Prudential Regulation Authority did not pursue action against Colonial First State over its tardiness in transitioning customers to MySuper products. The Commonwealth Bank of Australia subsidiary had been required to shift clients to the low-fee accounts by the start of 2014. However, it did not do so for more than three years. CBA admitted to over 15,000 breaches of the Superannuation Industry Supervision Act, but rather than impose fines, APRA approved a plan to gradually transition CFS clients to MySuper accounts.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COLONIAL FIRST STATE GROUP LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSSIE HOME LOANS LIMITED, COUNT FINANCIAL LIMITED, FINANCIAL WISDOM LIMITED

Risks are real even in blur of reporting season

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Original article by David Rogers
The Australian – Page: 28 : 15-Aug-18

The earnings outlook for Australian companies has been encouraging so far in the August reporting season. There has been an 0.5 per cent increase in the consensus estimate for growth in earnings per share over the next year, based on financial results to date. Local investors have largely shrugged off global issues such as the downturn in the Turkish lira and continued trade tensions between the US and China. However, local shares – and other asset classes – remain vulnerable to external risks.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, COCHLEAR LIMITED – ASX COH, CHALLENGER LIMITED – ASX CGF, CSL LIMITED – ASX CSL, WOODSIDE PETROLEUM LIMITED – ASX WPL, WESFARMERS LIMITED – ASX WES, QBE INSURANCE GROUP LIMITED – ASX QBE, DEXUS – ASX DXS, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, SEEK LIMITED – ASX SEK, PERPETUAL LIMITED – ASX PPT, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, EUROPEAN CENTRAL BANK

NAB hid compo from ASIC

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Original article by Ben Butler, Michael Roddan
The Australian – Page: 17 & 21 : 14-Aug-18

National Australia Bank’s Andrew Hagger has denied allegations that it withheld information on compensation payments from the Australian Securities & Investments Commission. He told the banking royal commission that he had been "open and transparent" with ASIC commissioner Greg Tanzer in a telephone conversation on 24 October 2016, several hours after NAB’s wealth unit passed a resolution to increase compensation over its plan service fee. NAB released its financial results three days later, the same day on which ASIC released a report on the fees-for-no-service scandal.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, NATIONAL WEALTH MANAGEMENT SERVICES LIMITED, NULIS NOMINEES AUSTRALIA LIMITED

Cashed-up PE firms prowl ASX for deals

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 13 & 16 : 13-Aug-18

The value of announced mergers and acquisitions involving Australian-listed companies has topped US$39.3bn so far in 2018. Private equity investors have been particularly active; US$11.4bn ($15.6bn) worth of such deals involving both listed and unlisted assets have been announced so far in 2018, which is 47 per cent higher than at the same time in 2017. Experts anticipate that the private equity sector will continue to pursue listed companies, with Tom Story of law firm Allens noting that suitors and their targets have been more willing to agree on price in 2018.

CORPORATES
ALLENS, DEALOGIC (AUSTRALIA) PTY LTD, INVESTA OFFICE FUND – ASX IOF, THE BLACKSTONE GROUP LP, SIRTEX MEDICAL LIMITED – ASX SRX, CDH INVESTMENTS FUND MANAGEMENT COMPANY, BWX LIMITED – ASX BWX, SINO GAS AND ENERGY HOLDINGS LIMITED – ASX SEH, SANTOS LIMITED – ASX STO, HEALTHSCOPE LIMITED – ASX HSO, OAKTREE CAPITAL MANAGEMENT LLC, BILLABONG INTERNATIONAL LIMITED, PACIFIC EQUITY PARTNERS PTY LTD, LIFEHEALTHCARE PTY LTD, CITIGROUP PTY LTD, BGH CAPITAL PTY LTD, BAIN AND COMPANY, I-MED RADIOLOGY, ACCOLADE WINES LIMITED, CHAMP PRIVATE EQUITY PTY LTD, THE CARLYLE GROUP, MANUKA HEALTH, IXOM, PEMBA CAPITAL, DEVICE TECHNOLOGIES AUSTRALIA, GOLDMAN SACHS AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, AMCOR LIMITED – ASX AMC, NEW YORK STOCK EXCHANGE

RBA’s Lowe has his share of doubters

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 32 : 10-Aug-18

The Reserve Bank of Australia has not increased the official cash rate since November 2010, but governor Philip Lowe indicated on 8 August that it may not be long before it has to lift rates. An increase in interest rates would mean that the RBA felt that its inflation target of 2.5 per cent might be not be far off being reached, but some economists are not so certain about this, given the experience of economies in other parts of the world.

CORPORATES
RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, MACQUARIE GROUP LIMITED – ASX MQG

NAB chief insists acts not a crime

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Original article by James Frost
The Australian Financial Review – Page: 1 & 8 : 10-Aug-18

The banking royal commission has heard that National Australia Bank is being investigated over more than 100 alleged breaches of the law. The alleged breaches relate to actions by its superannuation and wealth management units, with the investigations being carried out by the Australian Securities & Investments Commission. NAB CEO Andrew Thornburn says that it does not consider that the alleged claims against it amounted to criminal breaches, and he is absolutely certain that they were not criminal acts.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, MLC LIMITED, AMCOR LIMITED – ASX AMC, BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32, CARLTON AND UNITED BREWERIES

Time for companies to splash the buyback cash

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Original article by David Rogers
The Australian – Page: 27 : 10-Aug-18

Berowne Hlavaty of JP Morgan says key indicators suggest that the August reporting season in Australia will be a strong one. The firm’s poll of analysts shows that 33 per cent of stocks are expected to post an earnings surprise on the upside, while only 17 per cent of stocks will surprise on the downside. JP Morgan has identified a number of companies that could potentially announce share buybacks during the reporting season. They include BHP Billiton, Westpac, Woolworths, Insurance Australia Group and Vicinity Centres.

CORPORATES
JP MORGAN AUSTRALIA LIMITED, BHP BILLITON LIMITED – ASX BHP, WESTPAC BANKING CORPORATION – ASX WBC, WOOLWORTHS GROUP LIMITED – ASX WOW, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, VICINITY CENTRES – ASX VCX, BLUESCOPE STEEL LIMITED – ASX BSL, ANSELL LIMITED – ASX ANN, MIRVAC GROUP – ASX MGR, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, SUNCORP GROUP LIMITED – ASX SUN, PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM, WESFARMERS LIMITED – ASX WES, PERPETUAL LIMITED – ASX PPT, SIMS METAL MANAGEMENT LIMITED – ASX SGM, SEVEN WEST MEDIA LIMITED – ASX SWM, NATIONAL STORAGE REIT – ASX NSR, CHARTER HALL LONG WALE REIT – ASX CLW, LYNAS CORPORATION LIMITED – ASX LYC, IRESS LIMITED – ASX IRE, GROWTHPOINT PROPERTIES AUSTRALIA – ASX GOZ, CHARTER HALL RETAIL REIT – ASX CQR, PERSEUS MINING LIMITED – ASX PRU, CROMWELL PROPERTY GROUP – ASX CMW, PROPERTYLINK GROUP LIMITED – ASX PLG, TASSAL GROUP LIMITED – ASX TGR, CARDNO LIMITED – ASX CDD, MYOB GROUP LIMITED – ASX MYO, MAGELLAN FINANCIAL GROUP LIMITED – ASX MFG, CROWN RESORTS LIMITED – ASX CWN, STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

NAB placed on criminal charge alert

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Original article by Ben Butler, Michael Roddan
The Australian – Page: 1 & 2 : 9-Aug-18

The "fee for no service" scandal has deepened, with the banking royal commission being told that National Australia Bank had charged more than 4,000 clients some $3m in fees after they had died. Nicole Smith, the chair of NAB’s superannuation trustee, confirmed that it had been charging dead people an adviser fee as recently as June. She said NAB looked into the issue earlier in 2018 after the inquiry heard that the Commonwealth Bank had been collecting fees from deceased customers. The inquiry was also told that NAB’s conduct could potentially incur criminal charges.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION