K: Financial and Insurance Services

Banking for the rich fear: ANZ

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Original article by Glen Norris
The Australian – Page: 13 & 19 : 30-Aug-23

ANZ Bank CEO Shayne Elliott has expressed concern about the impact of over-regulation of the sector and stricter lending standards on access to banking services. He notes that complying with new regulations cost ANZ some 4.7 cents for every dollar of revenue in 2022, compared with just 0.7 cents when he took the helm in 2017. Elliott adds that the regulatory burden is making it harder to obtain a loan or credit card, or to start a business. He acknowledges that lending standards needed to be tightened after the global financial crisis and the Hayne royal commission, but says there is a risk that banking and access to credit may become limited to wealthy people in the future.

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

1.43 million Australians At Risk of mortgage stress in June 2023, representing 28.7% of mortgage holders

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Original article by Roy Morgan
Market Research Update – Page: Online : 26-Jul-23

New research from Roy Morgan shows that an estimated 1.43 million mortgage holders (28.7%) were ‘At Risk’ of ‘mortgage stress’ in the three months to June 2023. This period encompassed two interest rate increases of 0.25%, taking official interest rates to 4.1% in June. This is the equal highest number of mortgage holders considered ‘At Risk’ of mortgage stress for more than 15 years, since there were 1.46 million ‘At Risk’ in May 2008. The number of Australians who are ‘At Risk’ of mortgage stress has increased by 539,000 over the last year. However, the overall number of Australians in mortgage stress remains below the high reached during the Global Financial Crisis in early 2008 of 35.6% (1,455,000 mortgage holders). Meanwhile, the number of mortgage holders considered to be ‘Extremely At Risk’ has increased to 943,000 (19.6%) in the three months to June, which is significantly above the long-term average over the last 15 years of 15.4%. These are the latest findings from Roy Morgan’s Single Source Survey, based on in-depth interviews conducted with over 60,000 Australians each year including over 10,000 owner-occupied mortgage-holders.

CORPORATES
ROY MORGAN LIMITED

NAB blocks high-risk crypto exchanges

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Original article by Lucas Baird
The Australian Financial Review – Page: 17 : 17-Jul-23

The National Australia Bank has announced it will block payments to certain high-risk cryptocurrency exchanges as from 17 July, although NAB head of fraud Chris Sheehan has declined to name which exchanges are being targeted. The NAB’s action is the latest in a series of similar crackdowns by the major banks, who are finding that scammed money is increasingly being diverted into cryptocurrency, making it almost impossible to recover for scam victims. Asked if the ban includes Binance, Sheehan replied that "our approach is going to be consistent with the rest of the industry".

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BINANCE

Investors pull out of equities on recession fear

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Original article by Joanne Tran
The Australian Financial Review – Page: 27 : 12-Jul-23

Data from global funds network Calastone shows that Australia fund managers’ net outflows totalled $2.8bn in the June quarter. Equities accounted for $1.65bn of the net outflows, while property accounted for $173m. The bearish investor sentiment toward higher-risk assets resulted in fixed income funds recording net inflows of $582m for the period. Teresa Walker of Calastone says there is no particular reason to favour the Australian sharemarket over offshore markets at present.

CORPORATES
CALASTONE

Shares end year on a high

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Original article by David Rogers
The Weekend Australian – Page: 25 & 39 : 1-Jul-23

The S&P/ASX 200 gained 9.7 per cent during 2022-23, which is well above the average gain of 6.6 per cent over the last decade; it also follows a loss of 10.2 per cent for the previous financial year. The benchmark index rose by 14.5 per cent in 2022-23 on a total return basis, compared with a 6.1 per cent loss in 2021-22. The S&P/ASX 200 information technology index rose by 36 per cent in 2022-23, while the materials sector added 15 per cent. Meanwhile, AMP Capital expects balanced superannuation funds to post a gain of 8-9 per cent for the financial year.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX 200 INFORMATION TECHNOLOGY INDEX

WA miners the top performers

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Original article by Eli Greenblat
The Weekend Australian – Page: 25 & 39 : 1-Jul-23

Lithium producer Liontown Resources was the top-performing stock in the S&P/ASX 200 during 2022-23, rising by 168.25 per cent. The mining and resources sector dominated the performance charts, accounting for six of the 10 stocks with the highest returns for the fiscal year; Western Australia-based miners resources stocks in particular delivered strong returns. However, Lake Resources shed 61.78 per cent in 2022-23; other underperformers included The Star Entertainment Group (down 55.05 per cent) and Domino’s Pizza (down 31.72 per cent).

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, LIONTOWN RESOURCES LIMITED – ASX LTR, LAKE RESOURCES NL – ASX LKE, THE STAR ENTERTAINMENT GROUP LIMITED – ASX SGR, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP

Bendigo Bank home loan customers are the most satisfied with their bank after a year of interest rate rises

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Original article by Roy Morgan
Market Research Update – Page: Online : 21-Jun-23

New financial data from Roy Morgan’s Single Source shows that Bendigo Bank has topped the latest banking customer satisfaction ratings among home loan customers. Bendigo Bank’s customer satisfaction rating has increased from 86.2% in May 2022 to 91.0% in May 2023. Close behind in second place is ING with customer satisfaction among home loan customers at 88.3%, up 0.2% points from a year ago. The latest data covers the six months to May 2023, and overall home loan customer satisfaction amongst Australia’s top 12 banks collectively was at 75.5% during this period. This represents a decrease of 1.6% points from the six months to May 2022, just as the current record-setting interest rate increasing cycle got under way. Meanwhile, NAB now has the highest home loan customer satisfaction among the big four banks, with a rating of 75.6%. Average home loan customer satisfaction with the big four banks as a group was 73.7%. These latest banking satisfaction ratings come from the Roy Morgan Single Source survey, derived from in-depth interviews with over 60,000 Australians each year.

CORPORATES
ROY MORGAN LIMITED, BENDIGO BANK, ING BANK (AUSTRALIA) LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Commonwealth Bank fined a record $3.55m for breaching spam laws with millions of emails

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Original article by Josh Taylor
The Guardian Australia – Page: Online : 7-Jun-23

The Australian Communications & Media Authority has ordered the nation’s biggest bank to pay a record penalty for breaching the Spam Act. The Commonwealth Bank has been fined $3.55m for sending 65 million unsolicited emails to customers; the bulk of them required customers to log in to their account in order to unsubscribe, which is prohibited under the legislation that took effect in 2021. The bank has also agreed to a three-year court-enforceable undertaking to independently review its online marketing practices and staff training.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN COMMUNICATIONS AND MEDIA AUTHORITY

Mortgage stress increases to its highest since August 2008 with 27.8% of mortgage holders now At Risk

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Original article by Roy Morgan
Market Research Update – Page: Online : 6-Jun-23

New research from Roy Morgan shows that an estimated 1.38 million mortgage holders (27.8%) were ‘At Risk’ of ‘mortgage stress’ in the three months to April 2023. This period encompassed two interest rate increases of 0.25%, taking official interest rates to 3.6% in April. This is the highest number of mortgage holders considered ‘At Risk’ since August 2008, when more than 1.4 million were ‘At Risk’. The proportion of mortgage holders considered ‘At Risk’ of mortgage stress is now the highest since October 2011 (28.3%). The number of Australians who are ‘At Risk’ of mortgage stress has increased by 529,000 over the last year. However, despite the sharp increase in the level of mortgage stress during the last year the overall number remains below the high reached during the Global Financial Crisis in early 2009 of 35.6% (1,455,000 mortgage holders). Meanwhile, the number of mortgage holders considered to be ‘Extremely At Risk’ has increased to 881,000 (18.5%), which is significantly above the long-term average over the last 15 years of 661,000 (15.9%). These are the latest findings from Roy Morgan’s Single Source Survey, based on in-depth interviews conducted with over 60,000 Australians each year including over 10,000 owner-occupied mortgage-holders.

CORPORATES
ROY MORGAN LIMITED

The ASX shrinking for the first time in 18 years

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Original article by Alex Gluyas, James Thomson
The Australian Financial Review – Page: 1 & 24 : 6-Jun-23

MST Marquee estimates that the Australian sharemarket’s total capitalisation will fall by about $43bn by the end of 2023, due to the current wave of mergers and acquisitions activity. This will be the first time the local bourse has de-equitised since 2005, when News Corp moved its primary listing to the US. The de-equitisation trend is particularly strong in the resources sector, although Hasan Tevfik from MST Marquee notes that this is also boosting the valuations of resources groups; he adds that rising valuations may prompt more companies to pursue an IPO.

CORPORATES
MST MARQUEE