K: Financial and Insurance Services

Westpac nabs CBA’s Cobley for top role

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Original article by James Chessell, Sarah Thompson, James Eyers
The Australian Financial Review – Page: 18 : 27-May-15

Westpac has announced that Lyn Cobley will succeed Rob Whitfield as the head of its institutional banking division. Cobley is currently the head of retail products and third-party banking at the Commonwealth Bank of Australia (CBA). She had previously worked for groups such as Barclays Capital and Citigroup, and was regarded as a potential successor to CBA CEO Ian Narev. Whitfield will step down on 10 July 2015, after nearly three decades at Westpac.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BARCLAYS CAPITAL SECURITIES LIMITED, CITIGROUP PTY LTD, ERNST AND YOUNG, TRADINGROOM PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, FAIRFAX MEDIA LIMITED – ASX FXJ, WESTPAC INSTITUTIONAL BANK, ST GEORGE BANK LIMITED

Low rates, yields to hit Suncorp, IAG

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Original article by Ruth Liew
The Australian Financial Review – Page: 18 : 26-May-15

The earnings of Australian-listed insurance companies are likely to be affected by low interest rates and bond yields. Investment income accounts for around 40 per cent of QBE Insurance Group’s profits, compared with 25 per cent in the case of Insurance Australia Group (IAG) and Suncorp. IAG CEO Mike Wilkins says most of the company’s insurance book comprises "short tail risk".

CORPORATES
QBE INSURANCE GROUP LIMITED – ASX QBE, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, SUNCORP GROUP LIMITED – ASX SUN, CREDIT SUISSE (AUSTRALIA) LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Banks, miners tipped for drop

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Original article by Tim Binsted
The Australian Financial Review – Page: 29 : 26-May-15

Credit Suisse notes that Australian-listed companies’ dividend payout ratios are at their highest levels in more than two decades. Richard Hitchens of Credit Suisse notes that investors recently sold down bank stocks after their interim dividends were lower than expected. He adds that groups such as Aurizon, GPT Group and Santos may also find it hard to increase their dividends.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, AURIZON HOLDINGS LIMITED – ASX AZJ, GPT GROUP – ASX GPT, SANTOS LIMITED – ASX STO, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, TELSTRA CORPORATION LIMITED – ASX TLS, DEUTSCHE BANK AG, UNITED STATES. FEDERAL RESERVE BOARD, EUROPEAN CENTRAL BANK

Westpac institutional banking head Rob Whitfield leaving

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Original article by James Chessell, Sarah Thompson
The Australian Financial Review – Page: 15 : 26-May-15

Westpac may appoint an external candidate to succeed the group’s head of institutional banking, Rob Whitfield, who is widely tipped to stand down. Whitfield has been in the role since 2007 and has been at Westpac since 1986. He had been in the running to succeed Gail Kelly as CEO earlier in 2015. Internal candidates to replace him are said to include Anthony Masciantonio, Rachel Slade and Terry Winder.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, WESTPAC INSTITUTIONAL BANK, ST GEORGE BANK LIMITED, LLOYDS BANKING GROUP PLC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ROYAL BANK OF SCOTLAND GROUP PLC, BANK OF QUEENSLAND LIMITED – ASX BOQ, PETER LEE ASSOCIATES PTY LTD, BT FINANCIAL GROUP PTY LTD

Capex in focus amid hopes for outlook

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Original article by Vesna Poljak
The Australian Financial Review – Page: 22 : 25-May-15

Futures traders expect the Australian sharemarket to shed nine points when trading resumes on 25 May 2015. The market is likely to take its cue from the US, with the Dow Jones Industrial Average and the S&P 500 losing ground on 22 May. Meanwhile, investors will be awaiting the release of the capital expenditure survey data for the March quarter, which Paul Bloxham of HSBC expects to be similar to the data for the December 2014 quarter.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX, HSBC AUSTRALIA HOLDINGS PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BLOOMBERG LP, UNITED STATES. FEDERAL RESERVE BOARD

ANZ-Roy Morgan New Zealand Consumer Confidence – Ob-La-Di Ob-La-Da

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 22-May-15

The ANZ-Roy Morgan New Zealand Consumer Confidence Index has fallen from 128.8 in April 2015 to 123.9 in May. This compares with a long-term average of 117.9. Stripping out seasonal noise, the index showed a three-point fall, but it remains well above historical averages. The Current Conditions Index fell from 130.3 to 124.6, while the Future Conditions Index eased from 127.8 to 123.4. Meanwhile, a net seven per cent of New Zealanders believe that they are financially better off compared with last year.

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

QIC strikes $1 billion infrastructure deal

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 21 : 21-May-15

QIC will invest nearly $A1bn in infrastructure assets on behalf of the California Public Employees Retirement System. Australia and New Zealand will be the main focus of the investment portfolio, including transport, energy and utility assets, although QIC will also seek assets in Asian countries. The US pension fund boasts some $A300bn worth of assets, while QIC’s infrastructure portfolio is worth $A5.8bn.

CORPORATES
QIC LIMITED, CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, AMP CAPITAL INVESTORS LIMITED, OHIO STATE UNIVERSITY, JP MORGAN ASSET MANAGEMENT INCORPORATED, QUEENSLAND MOTORWAYS LIMITED, TRANSURBAN GROUP LIMITED – ASX TCL, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, EPIC ENERGY PTY LTD, PORT OF BRISBANE, BRISBANE AIRPORT, WESTLINK MOTORWAY LIMITED

ANZ-Roy Morgan Australian Consumer Confidence: Budget Boosts Confidence in the Economy

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 19-May-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 3.6 per cent to 114.6 in the week ended 17 May 2015, to the highest level since early November 2014. Confidence is up a cumulative 5.4 per cent over the last fortnight, suggesting a more positive reaction to the Federal Government’s Budget and the interest rate cut in May. Budget measures aimed at households and micro businesses were likely key reasons for the lift in confidence. This is in marked contrast to 2014, when a number of unpopular tightening measures saw confidence plunge to 99.3 in the weeks following the Budget.

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

Banks cut deeper into deposit rates

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Original article by Clancy Yeates
The Australian Financial Review – Page: 20 : 20-May-15

Australian banks have reduced the interest rate on some savings accounts by the full 25 basis point reduction in the cash rate in May 2015. However, some banks have reduced their mortgage interest rates by a lower margin. Michelle Hutchison of Finder.com.au notes that the majority of households do not have a mortgage, while most have savings accounts. Some banks have offered a sweetener to savers by increasing the interest rate on term deposits and accounts that offer bonus interest rates.

CORPORATES
FINDER.COM.AU, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE GROUP LIMITED – ASX MQG, AMP LIMITED – ASX AMP, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BELL POTTER SECURITIES LIMITED, BANK OF WESTERN AUSTRALIA LIMITED, ST GEORGE BANK LIMITED, BANK OF SOUTH AUSTRALIA LIMITED, BANK OF MELBOURNE LIMITED

Tax breaks to lift borrowing

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Original article by Clancy Yeates
The Australian Financial Review – Page: 18 : 18-May-15

The Commonwealth Bank of Australia (CBA) expects more small businesses to take out loans as a result of the Australian Government’s May 2015 Budget. CBA’s Clive van Horen says the $A5.5bn small business package should boost the confidence of small businesses and provide them with the incentive to invest in new equipment. However, TS Lim of Bell Potter says that even with the tax breaks, many small businesses will be reluctant to increase their debt.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BELL POTTER SECURITIES LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ