K: Financial and Insurance Services

Westpac to ramp up home loans, transaction accounts

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Original article by Clancy Yeates
The Australian Financial Review – Page: 13 & 16 : 9-Nov-15

The head of Westpac’s consumer banking arm, George Frazis, says his division aims to increase its customer base by 850,000 in coming years. The ambitious target is part of plans by CEO Brian Hartzer to gain an additional one million customers across Westpac’s operations by 2017. Frazis has signalled a push to increase home loan and transaction account customers. Westpac also aims to reduce its cost-to-income ratio from 43.8 per cent in 2014 to less than 40 per cent within three years.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, BANK OF MELBOURNE LIMITED, ST GEORGE BANK LIMITED, BANK OF SOUTH AUSTRALIA LIMITED, RAMS HOME LOANS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BELL POTTER SECURITIES LIMITED

Australian M&A fires up as global uncertainty weighs on executives

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 16 : 9-Nov-15

A global survey of senior executives by EY Oceania shows that more than 50 per cent of Australian companies intend to pursue acquisitions in the next 12 months, compared with 44 per cent in the previous six-monthly survey. Mergers and acquisitions activity in Australia is particularly strong in sectors such as food services, consumer retailing and life sciences. Meanwhile, 64 per cent of respondents in Australia and New Zealand, plus 74 per cent globally, expect equity valuations to remain stable.

CORPORATES
ERNST AND YOUNG, WOODSIDE PARK STUD PTY LTD, OIL SEARCH LIMITED – ASX OSH, ASCIANO LIMITED – ASX AIO, QUBE HOLDINGS LIMITED – ASX QUB, BROOKFIELD INFRASTRUCTURE PARTNERS LP, CREDIT SUISSE (AUSTRALIA) LIMITED

Analysts cool on CBA’s $2.4b profit

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Original article by Clancy Yeates
The Australian Financial Review – Page: 13 & 17 : 6-Nov-15

The Commonwealth Bank has posted an unaudited profit of $A2.4bn for the September 2015 quarter, which is four per cent higher year-on-year. The major bank’s trading update also indicated that its exposure to impaired and doubtful loans fell from $A6bn to $A5.5bn during the period, while deposits accounted for 63 per cent of its funding. The group’s tier one capital ratio rose to 9.8 per cent during the quarter following a $A5.1bn equity raising.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE GROUP LIMITED – ASX MQG, WATERMARK FUNDS MANAGEMENT PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, FOLKESTONE MAXIM ASSET MANAGEMENT LIMITED

Nib upgrades profit forecast for 2015-16

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Original article by Tim Binsted
The Australian Financial Review – Page: 22 : 5-Nov-15

Australian-listed private health fund NIB Holdings has advised that its 2015-16 statutory profit is likely to be within the range of $A90m to $A100m. The group had previously forecast a profit of $A85m to $A90m and has attributed the improved forecast to a strong performance in the first quarter. Chairman Steve Crane says NIB gained more than 23,000 additional policyholders in 2014-15, and now provides health insurance for more than one million people.

CORPORATES
NIB HOLDINGS LIMITED – ASX NHF, BUPA AUSTRALIA PTY LTD, MEDIBANK PRIVATE LIMITED – ASX MPL, AUSTRALIA. DEPT OF HEALTH

ANZ-Roy Morgan Australian Consumer Confidence Consolidates

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 4-Nov-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 1.6 per cent to 115.2 in the week ended 1 November 2015. Despite recent moves by the big four banks to raise variable mortgage rates, this week’s result confirms that overall consumer confidence remains on an upward trend, most likely reflecting the increased faith in the new Prime Minister. The four-week moving average is now at its highest level since February 2014. The subindex "economic conditions in the next 12 months" has risen by 5.1 per cent, and is now 25 per cent higher than prior to the change in Prime Ministership.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, PROPERTY COUNCIL OF AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA

Dollar jumps as RBA wrong-foots punters with cash rate

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Original article by Mark Mulligan
The Australian Financial Review – Page: 32 : 4-Nov-15

The Australian dollar was fetching $US0.7199 late in trading on 3 November 2015. The currency reached an intra-day high of $US0.7209 after the Reserve Bank left the cash rate on hold. Central bank governor Glenn Stevens indicated that there may be potential for further rate cuts given the low inflation rate. Felicity Emmett of the ANZ Bank expects the cash rate to be left on hold again in December before being reduced in February.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, JP MORGAN AUSTRALIA LIMITED, JAMIESONCOOTEBONDS PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD

ANZ-Roy Morgan Consumer Confidence increases again as RBA meets to decide on interest rates – now 115.2 (up 1.8pts)

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 3-Nov-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 0.1 per cent to 115.2 in the week ended 1 November 2015. The largest contributor to the increase in consumer confidence over the past two weeks has been the positive increase in the "time to buy index", which has risen by seven per cent over the last fortnight and is now at +30 per cent. Meanwhile, 46 per cent (up two per cent in a fortnight) say now is a "good time to buy" major household items. Roy Morgan Research executive chairman Gary Morgan says the recent ABS low inflation figure and the positive movement in the ANZ-Roy Morgan Consumer Confidence rating is a good sign for the Turnbull Government. However, the high level of real unemployment and under-employment is still Australia’s major problem. By implementing reforms to free-up the labour market the Government will have a much bigger and more positive impact on the Australian economy overall than the recent suggestion of tax reform and increasing the rate of the GST to 15 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUREAU OF STATISTICS, 7-ELEVEN STORES PTY LTD

Aussie higher on RBA bets as currency wars rumble on

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Original article by Mark Mulligan
The Australian Financial Review – Page: 32 : 3-Nov-15

The Australian dollar traded around $US0.7139 in late local trade on 2 November 2015. Traders expect the Reserve Bank of Australia to keep the official interest rate unchanged. The Australian currency has lost about 27 per cent in value against the US dollar since the US Federal Reserve ended its policy of quantitative easing.

CORPORATES
RESERVE BANK OF AUSTRALIA, EUROPEAN CENTRAL BANK, UNITED STATES. FEDERAL RESERVE BOARD

Rate cut nerves push ASX lower for sixth day

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 32 : 3-Nov-15

The S&P/ASX 200 index declined 1.4 per cent to 5,165.8 on 2 November 2015. It was the sixth straight day of losses for the index. The banks were particularly weak, with National Australia Bank losing 1.7 per cent to $A29.62, the Commonwealth Bank declining 2.1 per cent to $A75.10 and ANZ shedding 2.3 per cent to $A26.85.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE BANK LIMITED – ASX MBL, RIO TINTO LIMITED – ASX RIO, TABCORP HOLDINGS LIMITED – ASX TAH, TATTS GROUP LIMITED – ASX TTS, SANTOS LIMITED – ASX STO, BHP BILLITON LIMITED – ASX BHP, QUADRANT ENERGY PTY LTD

Nailing cup victor easier than RBA pick

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Original article by Jacob Greber, James Thomson
The Australian Financial Review – Page: 7 : 3-Nov-15

It is difficult to guess whether the Reserve Bank of Australia will decide to cut the official interest rate when the board of the central bank meets on 3 November 2015. Economists from Australia’s four big banks believe that the cash rate will remain unchanged at two per cent. Some analysts expect a cut, stressing the fact that headline inflation was only at 1.5 per cent in the September quarter.

CORPORATES
RESERVE BANK OF AUSTRALIA, BLOOMBERG LP, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, HSBC AUSTRALIA HOLDINGS PTY LTD