K: Financial and Insurance Services

US fund Ares in AMP buyout talks

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Original article by Bridget Carter, Lachlan Moffet Gray
The Australian – Page: 13 & 20 : 30-Oct-20

New York Stock Exchange-listed private equity firm Ares Management has been given access to AMP’s data room and is said to be considering a full takeover play. Ares boasts more than $US149bn ($211.3bn) in assets under management, and CEO Michael Arougheti has flagged the potential for acquisitions in the Asia-Pacific region. AMP recently announced a portfolio review, which could result in the sale of all or part of the business. AMP’s market capitalisation is about $4.4bn, based on the stock’s closing price of $1.28 on 29 October.

CORPORATES
AMP LIMITED – ASX AMP, ARES MANAGEMENT CORPORATION

No benefit in rate cut: ANZ chief

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Original article by Richard Gluyas
The Australian – Page: 13 & 18 : 30-Oct-20

The ANZ Bank has posted a net profit of $3.58bn for the year to 30 September, which is 40 per cent lower than previously. The result was primarily marred by a blowout in impairment charges, which rose to $2.74bn. Shareholders will receive a full-year dividend of $0.60 per share, compared with $1.60 in 2019-20. Meanwhile, CEO Shayne Elliott says a further reduction in official interest rates is unlikely to do much to stimulate the economy, as financial markets already have sufficient liquidity. The Reserve Bank is widely tipped to reduce the cash rate on 3 November.

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

Rinehart leads miners to No.1 as tech stars ride COVID-19 wave

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Original article by Michael Bailey, Julie-anne Sprague
The Australian Financial Review – Page: 1 & 6 : 30-Oct-20

The combined wealth of Australia’s 200 wealthiest individuals and families has risen from $342bn in 2019 to $424bn in 2020. Mining magnate Gina Rinehart has regained the title of Australia’s richest person, with estimated wealth of $28.9; she last topped the ‘Financial Review Rich List’ in 2015. Rinehart is followed by Andrew Forrest ($23bn) and Anthony Pratt ($19.75bn) on the list. Pratt had topped the list in 2019. Atlassian’s co-founders Mike Cannon-Brookes and Scott Farquhar are ranked 5th and 6th respectively.

CORPORATES
HANCOCK PROSPECTING PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, VISY INDUSTRIES AUSTRALIA PTY LTD, ATLASSIAN CORPORATION PLC

ANZ warns of $528m profit hit

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Original article by Joyce Moullakis
The Australian – Page: 17 : 28-Oct-20

The ANZ Bank has advised that its financial results for the second half of 2019-20 will be marred by an after-tax charge of $528m. This includes a $188m charge associated with its customer remediation program and a $138m hit with regard to its software amortisation policy. ANZ will release its full-year results on 29 October. Westpac and National Australia Bank also recently indicated that their upcoming full-year results will include writedowns and impairment charges in the second half.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Dividend doubt as Westpac flags profit hit

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Original article by Joyce Moullakis
The Australian – Page: 13 & 17 : 27-Oct-20

Westpac has advised that its financial results for the second half of 2019-20 will be marred by $1.22bn worth of write-downs and impairment charges. This includes a $406m write-down of its life insurance business and a $415m increase in provision for its settlement with Austrac for breaching anti-money laundering laws. Westpac will also incur an additional $104m in costs associated with its customer remediation program. UBS expects Westpac to pay a final dividend of $0.35 per share, after withholding its interim payout due to the coronavirus pandemic.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, UBS HOLDINGS PTY LTD

Analysts tip $11bn profits for banks in messy accounting year

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Original article by Cliona O’Dowd
The Australian – Page: 15 : 26-Oct-20

The ANZ Bank, Westpac and National Australia Bank will report their financial results for the year to 30 September in the next two weeks. Analysts expect Australia’s major banks to book a combined profit of about $11bn, with the Commonwealth Bank having reported its full-year results in August. The full-year results will be affected by factors such as remediation charges, asset sales and Westpac’s recent settlement with Austrac.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

AMP bids to reassure investors on outflows

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Original article by Cliona O’Dowd
The Australian – Page: 17 : 23-Oct-20

AMP CEO Francesco De Ferrari says the company has been resilient during the coronavirus pandemic. However, the wealth manager has reported net outflows of $8bn for the September quarter, with net inflows of just $6bn. The AMP Capital division has posted net outflows of $1.1bn for the period, while its assets under management fell 0.4 per cent to $189.2bn. Meanwhile, AMP Bank’s deposits increased by $52m to $17bn during the quarter, but its loan book fell $303m to $20.6bn.

CORPORATES
AMP LIMITED – ASX AMP, AMP CAPITAL INVESTORS LIMITED, AMP BANK LIMITED

Big banks’ wealth retreat may be short-lived

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Original article by Aleks Vickovich
The Australian Financial Review – Page: 22 : 16-Oct-20

IOOF CEO Renato Mota does not think Australia’s big banks will be involved in the wealth management sector over the next five years, although he expects them to return to the sector eventually. The major banks have either exited the sector or are in the process of doing so as a result of damning revelations at the Hayne royal commission. Netwealth’s joint MD Matt Heine notes that banks also got out of wealth management in the UK but re-entered the sector within 10 years, although "with very different propositions". Hub24 MD Andrew Alcock says the thought of the banks returning to wealth management does not perturb him.

CORPORATES
IOOF HOLDINGS LIMITED – ASX IFL, NETWEALTH GROUP LIMITED – ASX NWL, HUB24 LIMITED – ASX HUB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

RBA lays ground for Cup Day cut

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Original article by David Rogers, Patrick Commins
The Australian – Page: 13 & 20 : 16-Oct-20

Expectations of an official interest rate cut in November have been heightened by comments made by Reserve Bank of Australia governor Philip Lowe. He has told the Citi Investment conference that further easing of monetary policy is likely to "get more traction" as the economy re-opens than it would have at the COVID-19 pandemic’s peak. Kristina Clifton of the Commonwealth Bank says the RBA is likely to reduce the cash rate from 0.25 per cent to 0.1 per cent in November, and expand its bond-buying program to include five and 10-year government bonds.

CORPORATES
RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Blue chips steal AGM season spotlight

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Original article by Vesna Poljak
The Australian Financial Review – Page: 22 : 12-Oct-20

Futures pricing suggests that the Australian sharemarket will open flat on 12 October, despite a positive lead from Wall Street. The annual general meetings season is set to again be the key focus for investors in the coming week; the Commonwealth Bank, Telstra and CSL are among the blue-chip stocks that are slated to hold their AGMs. Macquarie has indicated that trading updates and commentary are likely to be of increased importance during the current AGM season, given that just 19 per cent of listed companies provided earnings guidance during the recent reporting season.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TELSTRA CORPORATION LIMITED – ASX TLS, CSL LIMITED – ASX CSL, MACQUARIE GROUP LIMITED – ASX MQG