K: Financial and Insurance Services

Bank bashing hurts economy

roymorgansocial Leave a comment

Original article by Richard Gluyas
The Australian – Page: 15 & 19 : 24-Jan-20

Former ANZ Bank CEO John McFarlane will succeed Lindsay Maxsted as Westpac’s chairman on 2 April. McFarlane has warned that continued criticism of the banking sector and policies such as the bank levy will affect the industry’s returns and ultimately impact on the economy via lower government revenue. His appointment follows Westpac’s alleged large-scale breach of anti-money laundering laws, which led to the departure of Maxsted and CEO Brian Hartzer.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

Veteran banker to chair Westpac

roymorgansocial Leave a comment

Original article by John Durie, Joyce Moullakis
The Australian – Page: 15 & 16 : 23-Jan-20

Former ANZ Bank CEO John McFarlane is set to succeed Lindsay Maxsted as Westpac’s chairman. Maxsted will step down ahead of schedule in response to the bank’s breach of anti-money laundering laws. Sources have indicated that McFarlane was chosen due to factors such as his knowledge of the retail banking sector, his reputation as a ‘change agent’ and the fact that he has no prior links to Westpac. The major bank has yet to appoint a permanent successor to former CEO Brian Hartzer.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

NAB hit with class action on super rip-off

roymorgansocial Leave a comment

Original article by Aleks Vickovich
The Australian Financial Review – Page: 12 & 17 : 22-Jan-20

A class action lawsuit will contend that National Australia Bank’s superannuation customers incurred substantial losses due to the bank’s tardiness in shifting them to a MySuper product. Law firm Maurice Blackburn will argue that NAB subsidiaries MLC Nominees and NULIS Nominees breached their duties as superannuation trustees by keeping customers in funds that had higher fees than MySuper products. The allegations were first raised before the Hayne royal commission in 2018.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MAURICE BLACKBURN PTY LTD, MLC NOMINEES, NULIS NOMINEES (AUSTRALIA) LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Rate cuts not working says CBA economist

roymorgansocial Leave a comment

Original article by Sarah Turner
The Australian Financial Review – Page: 27 : 22-Jan-20

National Australia Bank’s chief economist Alan Oster says the Reserve Bank needs to reduce official interest rates twice in 2020 in order to stimulate the economy. He expects the first rate cut to be in February. The Commonwealth Bank’s chief economist Michael Blythe also anticipates a rate cut in February, although he opposes such a move. Blythe contends that the three rate cuts in 2019 have not been effective, and they have resulted in outcomes such as a decline in consumer confidence.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

People’s Choice Credit Union – 95% customer satisfaction – highest satisfaction score in the general insurance category

roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 21-Jan-20

People’s Choice Credit Union has won Roy Morgan’s General Insurer of the Month Award for November 2019, with a customer satisfaction rating of 95%. It is now ahead of RACT (92%), RAA (91%), Shannons (90%) and RAC (87%), and has won its second consecutive monthly award. Roy Morgan CEO Michele Levine says that while RACT has been the dominant brand throughout 2019, People’s Choice Credit Union has been the standout performer in terms of ratings growth, increasing its rating by 9% over the last 12 months. The latest customer satisfaction ratings are taken from the Roy Morgan Single Source survey, compiled by in-depth face-to-face interviews with over 50,000 Australians each year in their homes.

CORPORATES
ROY MORGAN LIMITED, PEOPLE’S CHOICE CREDIT UNION, RACT INSURANCE PTY LTD, RAA INSURANCE LIMITED, SHANNONS, RAC INSURANCE PTY LTD

Gen Z threatens $1.7b of bank card revenue

roymorgansocial Leave a comment

Original article by James Eyers
The Australian Financial Review – Page: 21 : 17-Jan-20

Macquarie Group expects a further decline in credit card lending and revenue over the medium-term, as consumers continue to embrace alternative payment methods. Credit cards and payments account for some $1.7bn of major Australian banks’ revenue, and Macquarie believes that up to 45 per cent of this could be at risk due to the growth of ‘buy now, pay later platforms’ and other payment solutions. German notes that banks are also facing growing competition from fintechs in the foreign exchange market.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG

How CSL and BHP helped drive the index above 7000

roymorgansocial Leave a comment

Original article by William McInnes
The Australian Financial Review – Page: 27 : 17-Jan-20

The S&P/ASX 200 has taken just over two years to rise from 6,000 points to its new record high of 7,000. The index rose above 6,000 for the first time since the global financial crisis on 7 November 2017. BHP and CSL have been the biggest contributors to the S&P/ASX’s 200 rally since this time, adding 200 and 277 points respectively to the benchmark. Shares in CSL were trading at just $144.59 in November 2017, and the stock rose above $300 for the first time on 16 January.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX,{SPAC}BHP GROUP LIMITED – ASX BHP,{SPAC}CSL LIMITED – ASX CSL

Meet Macquarie: The $50bn investment bank

roymorgansocial Leave a comment

Original article by Joyce Moullakis
The Australian – Page: 15 & 21 : 17-Jan-20

Macquarie Group’s shares closed 1.4 per cent higher at a record $143.47 on 16 January; this compares with just $14.75 in early 2009, as the global financial crisis took its toll on investment banks. Macquarie now boasts a market capitalisation of $50.85bn, while it has more than $560bn worth of asset under management. Macquarie posted a profit of $1.46bn for the six months to September, an increase of 11 per cent, although CEO Shemara Wikramanayake has flagged a lower full-year profit than previously.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG

RBA warns on buy now, pay later dangers

roymorgansocial Leave a comment

Original article by Gerard Cockburn
The Australian – Page: 14 : 16-Jan-20

Documents released under Freedom of Information laws shows that the Reserve Bank of Australia had expressed concern about the growth of ‘buy now, pay later’ platforms in March 2019. The internal memorandum cautioned that the rapid growth in such platforms is beginning to present a risk to financial stability, and noted that some consumers may not fully understand the risks associated with these platforms. However, the central bank also concluded that buy now, pay later services can be more beneficial to some consumers than credit cards.

CORPORATES
RESERVE BANK OF AUSTRALIA, AFTERPAY LIMITED – ASX APT, ZIP CO LIMITED – ASX Z1P, GOLDMAN SACHS AUSTRALIA PTY LTD

Windfall for super on share upsurge

roymorgansocial Leave a comment

Original article by David Rogers, Gerard Cockburn
The Australian – Page: 13 & 18 : 16-Jan-20

Data from SuperRatings shows that the median balanced superannuation fund achieved a return of 13.8 per cent in 2019, for the best calendar-year gain since 2013. SuperRatings’ executive director Kirby Rappell says investors should not expect a similar return in 2020, although he expects the sector to perform well again. Rappell adds that consolidation in the super industry is likely to continue in 2020, and the sustainability of operating expenses will be a key issue for funds of all sizes. The average super fund has returned 7.7 per cent over the last decade.

CORPORATES
SUPERRATINGS PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY