K: Financial and Insurance Services

NAB funding costs hit GFC low

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Original article by Michael Bennet
The Australian – Page: 23 : 26-Aug-14

Debt financing has become more affordable for Australia’s four main banks, meaning they can compete more vigorously for mortgage loan customers without sacrificing margins. National Australia Bank has in mid-August 2014 sourced $A1.65bn via bonds with a maturity of 5.25 years and an interest rate of just 82 basis points above the bank bill swap rate. This is the lowest cost for such a move by the "big four" since the global financial crisis. The majority of bank funding still comes from deposits, but long-term debt accounts for 12%

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, MOODY’S INVESTORS SERVICE INCORPORATED, DEUTSCHE BANK AG

Shareholders get dividend from nib

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Original article by Jessica Gardner
The Australian Financial Review – Page: 18 : 26-Aug-14

NIB Holdings has posted a 2013-14 net profit of $A69.9m, which is four per cent higher than previously. The private health insurer’s operating profit increased by 4.3 per cent to $A72.3m, and revenue was up 15 per cent at $A1.53bn. Shareholders will receive a special dividend of $A0.09 per share. MD Mark Fitzgibbon notes that some customers did not renew their policies after NIB increased its premiums by 7.99 per cent

CORPORATES
NIB HOLDINGS LIMITED – ASX NHF, MEDIBANK PRIVATE LIMITED, CLSA AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, ISELECT LIMITED – ASX ISU, COMPARE THE MARKET PTY LTD

Escrow test ahead for ASX debutants

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Original article by Vesna Poljak, Philip Baker
The Australian Financial Review – Page: 15 & 20 : 26-Aug-14

Investors in companies that listed in late 2013 and early 2014 will be able to sell stock from late August 2014. Shares worth nearly $A3 billion will come out of escrow. Veda Group revealed that shares valued at $A1.1 billion will be released from escrow on 27 August. Geminder Holdings said that it will not sell down its stake in Pact Group when about $A465 million of shares come out of escrow on the same day

CORPORATES
VEDA GROUP LIMITED – ASX VED, PACT GROUP HOLDINGS LIMITED – ASX PGH, GEMINDER HOLDINGS PTY LTD, PERPETUAL LIMITED – ASX PPT, PACIFIC EQUITY PARTNERS PTY LTD, DICK SMITH HOLDINGS LIMITED – ASX DSH, ANCHORAGE CAPITAL PARTNERS PTY LTD, WOOLWORTHS LIMITED – ASX WOW, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, APOLLO GLOBAL MANAGEMENT LLC, OAKTREE CAPITAL MANAGEMENT LLC, OZFOREX GROUP LIMITED – ASX OFX, MYER HOLDINGS LIMITED – ASX MYR, MEDIBANK PRIVATE LIMITED, HEALTHSCOPE LIMITED – ASX HSO, ESTIA HEALTH PTY LTD, RETIRE AUSTRALIA PTY LTD, HOYTS CINEMAS LIMITED, OOH!MEDIA PTY LTD, APN OUTDOOR PTY LTD

ASX chief pleads for reform gridlock to end

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Original article by Andrew White
The Australian – Page: 17 : 25-Aug-14

Federal Trade and Investment Minister Andrew Robb recently said the Government was already rolling out measures to boost competitiveness, after a report was issued by the Business Council of Australia (BCA). It had argued the Government should foster certain industries that have a natural edge over others. The study, commissioned from McKinsey & Company, sparked claims the BCA was "picking winners". This has now been rejected by new BCA board member Elmer Funke Kupper, CEO of stock exchange operator ASX

CORPORATES
ASX LIMITED – ASX ASX, BUSINESS COUNCIL OF AUSTRALIA, McKINSEY AND COMPANY, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

Debutantes on parade as company profit season winds down

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Original article by Sally Rose, Jonathan Shapiro
The Australian Financial Review – Page: 15 & 20 : 25-Aug-14

A number of companies that listed on the Australian sharemarket in the last year will shortly release their maiden full-year results as listed companies. These include Virtus Health, Spotless Group and Nine Entertainment Group. Meanwhile, Tanya Branwhite of Macquarie Group notes that increased dividends have been a key feature of the August 2014 reporting season

CORPORATES
VIRTUS HEALTH LIMITED – ASX VRT, SPOTLESS GROUP HOLDINGS LIMITED – ASX SPO, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, MACQUARIE GROUP LIMITED – ASX MQG, PERPETUAL INVESTMENTS, PERPETUAL LIMITED – ASX PPT, CIMB SECURITIES INTERNATIONAL (AUSTRALIA) PTY LTD, RESERVE BANK OF AUSTRALIA, NAVITAS LIMITED – ASX NVT, G8 EDUCATION LIMITED – ASX GEM, AURIZON HOLDINGS LIMITED – ASX AZJ, WOOLWORTHS LIMITED – ASX WOW, TELSTRA CORPORATION LIMITED – ASX TLS, WESFARMERS LIMITED – ASX WES, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, DICK SMITH HOLDINGS LIMITED – ASX DSH, MONADELPHOUS GROUP LIMITED – ASX MND, BRADKEN LIMITED – ASX BKN, DOWNER EDI LIMITED – ASX DOW, WORLEYPARSONS LIMITED – ASX WOR, UGL LIMITED – ASX UGL, TRANSFIELD SERVICES LIMITED – ASX TSE, MONASH IVF GROUP LIMITED – ASX MVF, VEDA GROUP LIMITED – ASX VED, JAPARA HEALTHCARE LIMITED – ASX JHC, ISELECT LIMITED – ASX ISU, ISENTIA GROUP LIMITED – ASX ISD, CITIGROUP PTY LTD

How we spent the mining bonanza

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Original article by Matt Wade
The Sydney Morning Herald – Page: 4 : 25-Aug-14

A new study, "The Effect of the Mining Boom on the Australian Economy", has been published by the Reserve Bank of Australia. Authors Peter Downes, Kevin Anslow and Peter Tulip show that consumers saw a benefit from the resources boom due to two main factors. Income levels rose, and the foreign exchange rate was also lifted and made imports cheaper. This in turn meant a fall in car prices of 15% and one of 11% for household goods. Sales of these items were up 30% and 20% respectively as a result. The jobless rate is also some 1.25% lower than it would have been without the boom

CORPORATES
RESERVE BANK OF AUSTRALIA

CBA enlists heavyweights for compo panel

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Original article by Adam Creighton
The Australian – Page: 16 : 25-Aug-14

Following a scandal over improper advice by its financial planning arm, Commonwealth Bank of Australia (CBA) has formed an Independent Review Panel for the Open Advice Review Program meant to compensate affected customers. Some 400,000 clients of Commonwealth Financial Planning and Financial Wisdom from 2003 to 2012 will benefit. CBA has sought the services of a number of class action law firms on the issue, appointed ex- judges Geoffrey ­Davies and Julie Dodds-Streeton to the panel, and recruited US-based Promontory Financial Group to monitor internal processes at the bank

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMONWEALTH FINANCIAL PLANNING LIMITED, FINANCIAL WISDOM LIMITED, HIGH COURT OF AUSTRALIA, McGRATH NICOL AND PARTNERS SERVICES PTY LTD, COURT OF APPEAL (QUEENSLAND), SUPREME COURT OF VICTORIA, FEDERAL COURT OF AUSTRALIA, LAW COUNCIL OF AUSTRALIA, PROMONTORY FINANCIAL GROUP LLC, MACQUARIE GROUP LIMITED – ASX MQG, MACQUARIE PRIVATE WEALTH MANAGEMENT PTY LTD, AMP LIMITED – ASX AMP, QUEENSLAND. PUBLIC HOSPITALS COMMISSION OF INQUIRY, QUEENSLAND. LITIGATION REFORM COMMISSION

Treasury in hunt for US assets

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Original article by Eli Greenblat
The Australian Financial Review – Page: 15 & 20 : 25-Aug-14

Treasury Wine Estates has reduced costs by $A35m since Michael Clarke became CEO earlier in 2014. Clarke says the group’s major shareholders are very supportive of plans to pursue growth via "bolt-on" acquisitions in the US. He adds that both of Treasury’s private equity suitors have also supported his growth strategy. Treasury’s 2013-14 net loss of $A100.9m was primarily due to some $A281m worth of write-downs

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, KKR AND COMPANY LP, KOHLBERG KRAVIS ROBERTS AND COMPANY, TPG CAPITAL LP, FOSTER’S GROUP LIMITED, BERINGER WINE ESTATES HOLDINGS INCORPORATED, LUCOZADE

BHP says cash returns on horizon

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Original article by Barry FitzGerald
The Australian – Page: 17 : 22-Aug-14

Stockholders of BHP Billiton were unhappy that the 2013-14 results presentation and announcement of a new standalone entity to house non-core operations were not accompanied by news of a stock repurchasing scheme. It had been tipped to be worth between $US3bn and $US5bn ($A3.2bn to $A5.4bn), and on 21 August 2014 the stock fell a further $A0.10 to close at $A38.03. CEO Andrew Mackenzie concedes that the dividend lift of just $US0.05 to $US1.12 would have been disappointing for many, but says the group will return more capital to investors in the medium-term future

CORPORATES
BHP BILLITON LIMITED – ASX BHP

CBA to continue march into China

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Original article by Scott Murdoch
The Australian – Page: 17 : 22-Aug-14

Simon Blair, head of international financial services at Commonwealth Bank of Australia (CBA), says its push into the Chinese market has a focus on the regions. It has launched 15 banks in such areas since 2011, the latest being Handanxian County Bank in Hebei province. CBA has full ownership of a third of the businesses, and stakes of 80% each in the remainder. The Chinese county banks have recorded 13% growth in lending and 97% in deposits during 2013-14

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, HANDANXIAN COUNTY BANK