K: Financial and Insurance Services

Australian deal activity tipped to reach next peak in 2018

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 13 & 18 : 30-Jun-15

The value of completed mergers and acquisitions in Australia is expected to total $US74.1bn ($A96.1bn) in 2015, according to a report by Oxford Economics. This compares with $US73.7bn in 2014. The report, which was produced on behalf of law firm Baker & McKenzie, also forecasts that the value of local M&A deals will top $US126.3bn in 2018, followed by a fall in the next two years. Meanwhile, some $US2.4bn ($A3.1bn) worth of IPOs are expected to be undertaken in Australia in 2015, with IPO activity rising to $US6.6bn in 2018.

CORPORATES
OXFORD ECONOMICS LIMITED, BAKER AND McKENZIE, UBS HOLDINGS PTY LTD, MACQUARIE CAPITAL PTY LTD, GRANT SAMUEL AND ASSOCIATES PTY LTD

Big four rank high for profitability: BIS

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Original article by Clancy Yeates
The Australian Financial Review – Page: 16 : 29-Jun-15

The Bank for International Settlements’ annual report shows that Australia’s four major banks outperformed their peers in developed countries in terms of profitability in 2014. The banks’ pre-tax profits were 1.28 per cent of their assets during the calendar year, ahead of the US and Canada. TS Lim of Bell Potter notes that Australia’s comparatively high interest rates contributed to the profitability of local banks.

CORPORATES
BANK FOR INTERNATIONAL SETTLEMENTS, BELL POTTER SECURITIES LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Westpac buys stake in payments start-up

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Original article by James Eyers
The Australian Financial Review – Page: 21 : 25-Jun-15

PromisePay has raised $US2m ($A2.6m) in seed funding from several venture capital funds, including the Westpac-owned Reinventure Group. PromisePay was founded in 2014 and offers a payment platform for online marketplaces such as Jobstream and Flippa. PromisePay forecasts strong growth in revenue in 2015-16. Reinventure has previously invested in SocietyOne, Nabo and Zetaris.

CORPORATES
PROMISEPAY, REINVENTURE GROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, JOBSTREAM, FLIPPA.COM PTY LTD, SOCIETYONE AUSTRALIA PTY LTD, NABO COMMUNITY, ZETARIS PTY LTD, RAMPERSAND HOLDINGS PTY LTD, CULTIVATION CAPITAL, 99DESIGNS PTY LTD, SQUARE, SIXTHIRTY, KIMA VENTURES, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, TELSTRA CORPORATION LIMITED – ASX TLS, ERICSSON AUSTRALIA PTY LTD, NEC AUSTRALIA PTY LTD, FUJITSU AUSTRALIA LIMITED, STANDARD CHARTERED BANK PLC, BRAINTREE LABORATORIES INCORPORATED, UBER TECHNOLOGIES INCORPORATED, AIRBNB INCORPORATED, EBAY INCORPORATED, CRAIGSLIST, GUMTREE.COM AUSTRALIA PTY LTD, CARSALES.COM LIMITED – ASX CAR

Credit card rates up despite cash rate drop

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Original article by Clancy Yeates
The Australian Financial Review – Page: 16 : 24-Jun-15

Data from the Reserve Bank of Australia shows that the average credit card interest rate has risen to 19.75 per cent since the currency monetary policy easing cycle began in 2011. The cash rate has fallen to just two per cent over the same period. MWE Consulting’s Mike Ebstein attributes this to the fact that the proportion of credit card debt that is accruing interest has fallen from 73.7 per cent to just 65.6 per cent, with more consumers opting to pay their entire credit card debt each month.

CORPORATES
RESERVE BANK OF AUSTRALIA, MWE CONSULTING PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, CONSUMER ACTION LAW CENTRE

Australia languishes in bottom five

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Original article by Mark Mulligan
The Australian Financial Review – Page: 27 : 24-Jun-15

Global asset managers are bearish about the outlook for returns from Australian shares over the next three years, according to a report commissioned by Principal Global Investors. The report’s author, Amin Rajan, says the survey shows that markets in Russia, Australia, Latin America, Canada and Eastern Europe will deliver the worst returns over this period, while the best returns will be achieved by the US, India, Japan, so-called frontier markets and Asia.

CORPORATES
PRINCIPAL GLOBAL INVESTORS, UNITED STATES. FEDERAL RESERVE BOARD

ANZ-Roy Morgan Australian Consumer Confidence Edges Down

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 23-Jun-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 0.4 per cent to 114.0 in the week ended 21 June 2015. However, the four-week moving average is now at 113.5, the highest level since November 2014, reflecting the more positive reaction to the Federal Budget. The sub-index for households’ finances in the next year fell by 1.1 per cent, while the sub-index for households’ finances compared with a year ago rose by 5.3 per cent.

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

The year that ‘defied the doomsayers’

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 29 : 23-Jun-15

Australia’s S&P/ASX 200 Index has gained 3.7 per cent so far in 2014-15, with one week left of the financial year. The broader All Ordinaries Index has risen by 3.9 per cent, while the total return for stocks in the All Ordinaries Accumulation Index has risen by 8.2 per cent. CommSec’s Craig James says the fiscal year has been "good" but not "great" for investors.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES ACCUMULATION INDEX, COMMONWEALTH SECURITIES LIMITED, UNITED STATES. FEDERAL RESERVE BOARD

nib leaks customers’ private details

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Original article by Tim Binsted, Paul Smith
The Australian Financial Review – Page: 19 : 23-Jun-15

Listed health insurer nib has apologised to customers after their personal details were inadvertently made available to other customers via its web portal. The insurer has stressed that credit card details were not disclosed, although customers have said that they were able to view information such as the past claims of other customers. Data privacy agencies are expected to investigate the breach of confidentiality.

CORPORATES
NIB HOLDINGS LIMITED – ASX NHF, PRIVATE HEALTH INSURANCE OMBUDSMAN, AUSTRALIA. OFFICE OF THE AUSTRALIAN INFORMATION COMMISSIONER, PRIVATE HEALTH INSURANCE ADMINISTRATION COUNCIL, MEDIBANK PRIVATE LIMITED – ASX MPL, INTELLIGENT BUSINESS RESEARCH SERVICES PTY LTD

ME Bank aims for rapid mortgage growth despite credit rules

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Original article by Clancy Yeates
The Australian Financial Review – Page: 19 : 23-Jun-15

Industry superannuation fund-backed ME Bank hopes to increase annual growth in home loan customers to 20 per cent over the next three years, according to CEO Jamie McPhee. This compares with its current growth rate of about 10 per cent a year. McPhee adds that a $A90m capital investment in ME Bank’s IT systems will increase efficiencies and support its growth ambitions by allowing the group to offer a wider range of home loan products.

CORPORATES
ME BANK, MEMBERS EQUITY BANK PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSSIE HOME LOANS LIMITED, MORTGAGE CHOICE LIMITED – ASX MOC

RBA tool blunted: ANZ

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 21 : 22-Jun-15

The Reserve Bank of Australia’s policy of reducing interest rates was intended to encourage consumers to spend. However, ANZ Bank economists have concluded that people nearing retirement are in fact saving rather than spending. They also note that older Australians are also saving more as a result of uncertainty concerning superannuation policy.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ