K: Financial and Insurance Services

Risk of mortgage stress up again in December after Reserve Bank again decided not to cut interest rates

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Original article by Roy Morgan
Market Research Update – Page: Online : 30-Jan-25

New research from Roy Morgan shows that 1,595,000 mortgage holders (27.9) were ‘At Risk’ of ‘mortgage stress’ in December 2024. This represents a second straight monthly increase since October but is still 2.4% lower than the June figures prior to the Stage 3 income tax cuts. Modelling by Roy Morgan shows that the number of mortgages ‘At Risk’ will fall by 26,000 in February 2025 to 1,569,000 (27.4% of mortgage holders) if the Reserve Bank drops interest rates to 4.10% at its first board meeting for the year. The number of Australians ‘At Risk’ of mortgage stress has increased by 788,000 since May 2022, when the RBA began a cycle of interest rate increases. Meanwhile, the number of mortgage holders considered to be ‘Extremely At Risk’ of mortgage stress is now numbered 973,000 (17.4% of mortgage holders), which is significantly above the long-term average over the last 10 years of 14.6%. These are the latest findings from Roy Morgan’s Single Source Survey, based on in-depth interviews conducted with more than 60,000 Australians each year, including over 10,000 owner-occupied mortgage-holders.

CORPORATES
ROY MORGAN LIMITED, RESERVE BANK OF AUSTRALIA

700,000 retirees overpaying on super fund tax, says SMC

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Original article by Glenda Korporaal
The Australian – Page: 19 : 29-Jan-25

New research from the Super Members Council suggests that many Australian retirees are needlessly paying tax by leaving their superannuation in accumulation mode. These earnings are taxed at 15 per cent; in contrast, earnings from super funds in the retirement phase are not taxed, provided the fund’s balance is less than $1.9m. The research has found that about 700,000 people over the age of 65 who are no longer working full-time still have money in accumulation accounts, which is estimated to cost them an average of about $650 a year.

CORPORATES
SUPER MEMBERS COUNCIL OF AUSTRALIA LIMITED

Local funds at risk with $28 billion exposure to Nvidia

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Original article by Alex Gluyas
The Australian Financial Review – Page: 23 : 29-Jan-25

Shares in US semiconductor manufacturer Nvidia fell by 17 per cent on Tuesday, reducing its market capitalisation by nearly $US600bn. Analysis by VanEck shows that Australian fund managers and superannuation funds hold about $28bn worth of Nvidia’s shares, although this figure may be higher given that some funds do not disclose their holdings. Sam Sicilia from Hostplus says all high-performing stocks must decline at some point, and the question is whether Nvidia’s share price will rebound and what impact it will have on the broader sharemarket.

CORPORATES
NVIDIA CORPORATION, VANECK, HOST-PLUS

Union demands action over bank branch closures

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Original article by David Ross
The Australian – Page: 14 : 22-Jan-25

The Finance Sector Union’s national secretary Julia Angrisano has urged federal government intervention to ensure that consumers still have access to bank branches. Data from the Australian Prudential Regulation Authority shows that 2,334 branches have been closed nationwide over the last seven years. The Bank of Queensland recently advised that it will close another 14 branches, in addition to several that were already slated to close. Agrisano says the government has failed respond to a review of banking in regional areas, where many people no longer have access to branch banks.

CORPORATES
FINANCE SECTOR UNION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BANK OF QUEENSLAND LIMITED – ASX BOQ

ANZ probed on account interest

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Original article by Joyce Moullakis, David Ross
The Australian – Page: 13 & 14 : 22-Jan-25

The ANZ Bank is believed to be under renewed scrutiny by the Australian Securities & Investments Commission, in the wake of recent claims that it deducted fees from the accounts of customers who had died. ANZ has now been accused of incorrectly calculating the interest on a range of savings and deposit accounts, including bonus interest rates. ANZ was embroiled in a similar scandal in 2015, when it was forced to compensate customers regarding the bonus interest they received over a seven-year period.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Faltering dollar unlikely to sway Reserve Bank rates call

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Original article by Cameron Micallef
The Australian – Page: 19 : 22-Jan-25

The Australian dollar fell sharply on Tuesday, after US President Donald Trump signalled that a tariff of 25 per cent could be imposed on imports from Canada and Mexico from the start of February. However, AMP’s chief economist Shane Oliver says the recent downturn in the value of the currency is unlikely to influence the Reserve Bank’s interest rate decision in February. Oliver contends that quarterly inflation data to be released in late January will be the key factor that the central bank will take into account.

CORPORATES
AMP LIMITED – ASX AMP, RESERVE BANK OF AUSTRALIA, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Risk of mortgage stress up in November after Reserve Bank decides not to cut interest rates

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Original article by Roy Morgan
Market Research Update – Page: Online : 15-Jan-25

New research from Roy Morgan shows that 1,514,000 mortgage holders (26.8%) were ‘At Risk’ of ‘mortgage stress’ in November 2024. This represents a small increase on October but is 3.5% lower than the June figures prior to the Stage 3 tax cuts. Modelling by Roy Morgan shows that the number of mortgages ‘At Risk’ will fall by 26,000 in February 2025 to 11,488,000 (26.3% of mortgage holders) if the Reserve Bank drops interest rates to 4.10% at its first board meeting for the year. The number of Australians ‘At Risk’ of mortgage stress has increased by 707,000 since May 2022 when the RBA began a cycle of interest rate increases. Meanwhile, the number of mortgage holders considered to be ‘Extremely At Risk’ of mortgage stress is now numbered at 931,000 (16.9% of mortgage holders), which is significantly above the long-term average over the last 10 years of 14.6%. These are the latest findings from Roy Morgan’s Single Source Survey, based on in-depth interviews conducted with more than 60,000 Australians each year, including over 10,000 owner-occupied mortgage-holders.

CORPORATES
ROY MORGAN LIMITED

LA bushfires spark insurance hike warning

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Original article by Summer Liu
The Australian – Page: 7 : 14-Jan-25

The Insurance Council of Australia’s 2023-24 Catastrophe Resilience report shows that the nation’s average insured losses from bushfires totalled $220m per year over the last three decades. However, this has increased to more than $560m in the past five years. Alix Pearce from the ICA says factors such as worsening extreme weather, inflationary pressures and global reinsurance prices are putting upwards pressure on insurance premium across Australia. There are fears that the catastrophic wildfires in Los Angeles will result in further increases in Australians’ insurance premiums.

CORPORATES
INSURANCE COUNCIL OF AUSTRALIA LIMITED

LA bushfires spark insurance hike warning

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Original article by Summer Liu
The Australian – Page: 7 : 14-Jan-25

The Insurance Council of Australia’s 2023-24 Catastrophe Resilience report shows that the nation’s average insured losses from bushfires totalled $220m per year over the last three decades. However, this has increased to more than $560m in the past five years. Alix Pearce from the ICA says factors such as worsening extreme weather, inflationary pressures and global reinsurance prices are putting upwards pressure on insurance premium across Australia. There are fears that the catastrophic wildfires in Los Angeles will result in further increases in Australians’ insurance premiums.

CORPORATES
INSURANCE COUNCIL OF AUSTRALIA LIMITED

ASX listings climb with hopes for more

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Original article by Matt Bell
The Australian – Page: 18 : 8-Jan-25

A total of 67 companies listed on the Australian sharemarket in 2024, compared with just 45 in the previous calendar year. It also follows 107 new listings in 2022 and 241 in 2021. However, takeovers and de-listings resulted in the number of companies on the ASX falling from 2,191 in 2023 to 2,116 at the end of 2024. James Posnett from the ASX is upbeat about the outlook for new listings in 2025, noting that there has been increased confidence and renewed interest in listing in recent months.

CORPORATES
ASX LIMITED – ASX ASX