K: Financial and Insurance Services

Australian firms line up to launch inevitable local Bitcoin ETFs

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Original article by Dominic Powell
Brisbane Times – Page: Online : 27-Oct-21

The lack of a custody regime for cryptocurrencies prevents the launch of Bitcoin exchange-traded funds in Australia at present, although changes to the regulatory regime are expected in 2022. Betashares CEO Alex Vynokur says it is inevitable that a local Bitcoin ETF will be launched in Australia, adding that his firm would be interested in entering this market. Holon MD Heath Behncke says his firm would also be keen to launch a Bitcoin ETF. The world’s first listed Bitcoin ETF has performed well following its recent debut in the US.

CORPORATES
BETASHARES CAPITAL LIMITED, HOLON GLOBAL INVESTMENTS LIMITED

Fund managers swamped as IPO hopefuls line up

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Original article by William McInnes
The Australian Financial Review – Page: 29 : 27-Oct-21

Judo Bank and SiteMinder are among the companies with a market capitalisation of more than $1bn that will debut on the Australian sharemarket in coming weeks. Martin Hickson of 1851 Capital notes that at least seven companies with a market value of $1bn-plus are pursuing IPOs in the December quarter. Asset manager GQG Partners made its sharemarket debut on 26 October after raising $1.3bn in an IPO; the stock shed 2.5 per cent to close at $1.95, giving it a market capitalisation of $5.8bn.

CORPORATES
JUDO BANK PTY LTD, JUDO CAPITAL HOLDINGS LIMITED – ASX JDO, SITEMINDER LIMITED – ASX SDR, GQG PARTNERS INCORPORATED – ASX GQG, 1851 CAPITAL PTY LTD

Future Fund just shy of $200b after 1.2pc quarter

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 16 : 26-Oct-21

The federal government’s Future Fund has posted a return of 1.2 per cent for the September quarter, following a record gain of 10.2 per cent for the three months to June. Australian shares gained 5.34 per cent in the September quarter, while international shares gained 4.68 per cent and emerging market shares lost 4.17 per cent. The Future Fund reduced its exposure to global shares during the quarter, while its allocation to infrastructure and private equity assets increased; the latter is now its biggest asset class. The sovereign wealth fund boasts nearly $200bn worth of assets under management.

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY

NAB boosts staff to reduce crime risk

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Original article by Joyce Moullakis
The Australian – Page: 17 : 26-Oct-21

National Australia Bank has ramped up the number of employees who are managing financial risk in recent years. The bank employed more than 1,500 people in this area as at 31 August, compared with just 200 in 2018. In addition, NAB has advised that it spent $816.1m on improving its financial crime and fraud controls in the four years to June. CEO Ross McEwan also recently told a parliamentary economics committee that NAB is taking its obligations regarding compliance with anti-money laundering laws seriously.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Answers sought on bank closures

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Original article by Patrick Commins
The Australian – Page: 4 : 22-Oct-21

Data from the Reserve Bank of Australia shows that the number of full-service bank branches in regional and remote areas fell by 10 per cent between 2017 and 2020. This equates to about 270 branch closures. The federal government has established a Regional Banking Task Force, which will examine the impact of bank branch closures on regional communities. The taskforce will include politicians and representatives from the banking sector.

CORPORATES
RESERVE BANK OF AUSTRALIA

Economists cast doubt on central bank’s view

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Original article by Cecile Lefort
The Australian Financial Review – Page: 27 : 20-Oct-21

The minutes of the Reserve Bank of Australia’s latest monthly board meeting show that it still expects the cash rate to remain on hold until 2024, when inflation is forecast to be sustainably within its target range of 2-3 per cent. However, the consensus of economists is that the central bank will begin tightening monetary policy in mid-2023. Judo Bank’s chief economist Warren Hogan says the first rate rise could potentially be in November 2022, while Su-Lin Ong of RBC Capital Markets expects a rate rise in the December 2023 quarter.

CORPORATES
RESERVE BANK OF AUSTRALIA, JUDO BANK PTY LTD, RBC CAPITAL MARKETS

M&A to smash records

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Original article by Kanika Sood, Anthony Macdonald, Yolanda Redrup
The Australian Financial Review – Page: 1 & 20 : 19-Oct-21

Data from Refinitiv shows that $US350bn ($495bn) worth of takeover bids in Australia and New Zealand have been announced so far in 2021. This is three times the long-term average, and Takeovers Panel president Alex Cartel describes it as the hottest mergers and acquisitions environment in decades. Deal-making activity is being driven by factors such as the large amounts of cash on many companies’ balance sheets in the wake of the pandemic and the prospect of interest rates remaining low for some time. Almost $10bn worth of takeover bids involving Australian-listed were announced on 18 October.

CORPORATES
REFINITIV AUSTRALIA PTY LTD, AUSTRALIA. TAKEOVERS PANEL

Westpac takes $1.3b profit hit on write-downs

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Original article by James Eyers
The Australian Financial Review – Page: 15 & 20 : 13-Oct-21

Westpac has advised that a $965m writedown associated with its institutional banking division will reduce its profit for the second half of 2020-21 by $1.3bn. Westpac will also make further provision of $172m for customer remediation and potential legal action in the wake of the Hayne royal commission. Westpac’s common equity tier 1 capital ratio will be reduced by 15 basis points as a result of the writedowns. Meanwhile, the Commonwealth Bank has indicated that its own its remedial action plan has been completed, more than three years after entering into an enforceable undertaking with the prudential regulator.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Lockdowns and supply chain squeeze to lead to earnings reset

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Original article by Richard Henderson
The Australian Financial Review – Page: 29 : 13-Oct-21

Many Australian-listed companies withheld earnings guidance during the August reporting season, citing factors such as uncertainty arising from the COVID-19 pandemic. Investors will be hoping for greater clarity during the annual general meetings season, but Chris Nicol of Morgan Stanley says they are likely to be disappointed. He cautions that factors such as lockdowns and supply chain problems can be expected to weigh on earnings in the first half of 2021-22.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED

CBA tops complaint list for third straight year

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Original article by Michael Read
The Australian Financial Review – Page: 6 : 12-Oct-21

Data from the Australian Financial Complaints Authority shows that it received a total of 67,613 complaints from customers of financial services providers in 2020-21. This follows a record 76,874 complaints in the previous financial year. About 25 per cent of all complaints were about the nation’s four major banks, with the Commonwealth Bank of Australia topping the list with 5,815 complaints. A CBA spokesman says the number of complaints it received fell by 11 per cent in 2020-21, while it resolved almost two-thirds of complaints without needing to refer them to the ACFA.

CORPORATES
AUSTRALIAN FINANCIAL COMPLAINTS AUTHORITY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA