K: Financial and Insurance Services

ANZ-Roy Morgan Australian Consumer Confidence increases to 113.6

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 16-Feb-16

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 2.0 per cent to 113.6 in the week ended 14 February 2016. This follows a modest 0.2 per cent increase in the previous week and takes confidence back above its long-run average. The broad-based increase in confidence may suggest consumers are looking through the equity market weakness and shifting focus to domestic fundamentals. The sub-index on "finances compared to a year ago" has risen by 1.2 per cent, and consumers’ views on whether now is a good time to buy a major household item has risen by 2.9 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Why this market isn’t like the bloodiest days of 2008

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 31 : 17-Feb-16

The slump in global sharemarkets in 2016 has prompted comparisons with the onset of the global financial crisis in 2008. However, analysis shows that many Australian blue-chip stocks remain significantly above the lows recorded at the height of the GFC. National Australia Bank is the only one of the "big four" whose share price had not reached its pre-GFC high when the market peaked in April 2015. In contrast, energy stocks – which generally rallied during the GFC – have fallen sharply since April.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, STANDARD AND POOR’S ASX 20 INDEX, CREDIT SUISSE (AUSTRALIA) LIMITED, LEHMAN BROTHERS INCORPORATED, CITIGROUP PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, ORIGIN ENERGY LIMITED – ASX ORG, SANTOS LIMITED – ASX STO, CSL LIMITED – ASX CSL, CARNEGIE ASSET MANAGEMENT FONDSMAEGLERSELSKAB AB

Bendigo still beats analyst forecasts

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Original article by Shaun Drummond
The Australian Financial Review – Page: 18 : 16-Feb-16

Bendigo & Adelaide Bank has posted a 2015-16 interim net profit of $A208.7m, which is 8.2 per cent lower than previously. However, its after-tax cash profit rose by 2.7 per cent to $A223.7m and net income rose to $A783.5m. Income from the regional bank’s Homesafe reverse mortgage-style product increased by 66 per cent to $A50.4m. The group’s shares closed at $A8.86 on 15 February 2016.

CORPORATES
BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, BELL POTTER SECURITIES LIMITED, CONTANGO ASSET MANAGEMENT LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, MACQUARIE BANK LIMITED – ASX MBL, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX

China fears greatly exaggerated, says Aviva

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Original article by Ruth Liew
The Australian Financial Review – Page: 30 : 16-Feb-16

The Chinese sharemarket was resilient on 15 February 2016, despite concern that it would fall sharply when trading resumed after the week-long holiday for the Lunar New Year. Meanwhile, Aviva Investors CEO Euan Munro has downplayed concerns about the outlook for the Chinese economy, noting that it is still growing despite its shift from a focus on commodities. However, he says the yuan could potentially fall by 15-20 per cent against the US dollar in the next several years.

CORPORATES
AVIVA INVESTORS, AVIVA PLC, STANDARD LIFE INVESTMENTS LIMITED, PEOPLE’S BANK OF CHINA, RESERVE BANK OF AUSTRALIA, SHANGHAI COMPOSITE INDEX

Millionaires roll shrinks by 5000

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Original article by Ruth Liew
The Australian Financial Review – Page: 19 : 15-Feb-16

Data from Investment Trends shows that Australia boasted 440,000 individuals whose investable assets topped $A1m at the end of October 2015. This compares with 445,000 in 2014, while the combined assets of the nation’s millionaires has fallen from $A1.57trn to $A1.55trn. Investment Trends’ Irene Guiamatsia notes that property and direct ownership of shares accounts for two-thirds of the investment portfolios of most high net worth individuals.

CORPORATES
INVESTMENT TRENDS PTY LTD, RESERVE BANK OF AUSTRALIA, STANDARD AND POOR’S ASX 200 INDEX

Suncorp profit hit by natural disaster claims

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Original article by Ruth Liew
The Australian Financial Review – Page: 16 : 12-Feb-16

Australian-listed insurer Suncorp Group has reported a 2015-16 interim net profit of $A530m, which is 16 per cent lower than previously. The result was marred by factors such as lower returns from its investment portfolio and an increase in claims arising from natural disasters. The core general insurance division has booked a half-year profit of $A297m, while the banking arm’s profit was $A194m. Shareholders will receive an interim dividend of $A0.30 per share.

CORPORATES
SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIAN ASSOCIATED MOTOR INSURERS LIMITED, GIO AUSTRALIA LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BKI INVESTMENT COMPANY LIMITED – ASX BKI, FIDELITY WORLDWIDE INVESTMENT, CLSA AUSTRALIA PTY LTD, GPT GROUP – ASX GPT

Property returns trounce shares

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Original article by Simon Evans
The Australian Financial Review – Page: 29 : 11-Feb-16

The Australian sharemarket has delivered a total return of 58 per cent over the last decade. However, residential property prices in Melbourne and Sydney have risen by 92 per cent over the same period. Domain Group’s chief economist Andrew Wilson does not expect the housing market to enjoy such gains in the next decade, warning that growth is likely to be much lower. Perpetual’s Matt Sherwood says equities investors should also expect lower growth in dividends in the near-term.

CORPORATES
DOMAIN.COM.AU, PERPETUAL LIMITED – ASX PPT, STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

CBA holds dividend as urgency fades

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Original article by James Eyers
The Australian Financial Review – Page: 17 & 20 : 11-Feb-16

Commonwealth Bank shareholders will receive a 2015-16 interim dividend of $A1.98 per share, which equates to a payout ratio of around 70 per cent. The banking major has indicated that its full-year dividend payout will be 70-80 per cent of profits. Meanwhile, CEO Ian Narev says the bank is "very happy" with its current level of capital, and he expects the Australian Prudential Regulation Authority (APRA) to let banks increase their capital levels gradually. The Commonwealth Bank’s common equity tier 1 capital level is now 10.2 per cent, while APRA requires a minimum of eight per cent.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, NORDEA BANK AB, UBS AG

ANZ-Roy Morgan Consumer Confidence stabilising for now at 111.4

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 9-Feb-16

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 0.2 per cent to 111.4 in the week ended 7 February 2016, breaking the declining trend in confidence seen over the previous four weeks. The recent weakness has left confidence below its long-run average levels. However, the latest result may suggest that concerns around financial market volatility have abated somewhat. The sub-index on "finances in the next 12 months" has fallen by 1.3 per cent, and the sub-index on "economic conditions in the next 12 months" has fallen by 1.7 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

The ayes have it: companies wave goodbye to show-of-hands voting

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Original article by Andrew White
The Australian – Page: 21 : 10-Feb-16

The Australian Council of Superannuation Investors believes that companies should use a poll rather than the show-of-hands system to vote on resolutions at AGMs. It is estimated that about 20 per cent of Australia’s top 200 listed companies still use the traditional show-of-hands, although this methods is now used by less than 10 per cent of top-100 companies. Lobbying by TIAA-CREF has convinced many large companies that used a show-of-hands at their 2014 AGM to abandon the practice.

CORPORATES
AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, TEACHERS INSURANCE AND ANNUITY ASSOCIATION – COLLEGE RETIREMENT EQUITIES FUND, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, AUSTRALIA. CORPORATIONS AND MARKETS ADVISORY COMMITTEE