CBA profits cut despite growth in lending

Original article by James Frost, James Eyers
The Australian Financial Review – Page: 17 : 12-Nov-20

The Commonwealth Bank of Australia has reported a cash profit of $1.8bn for the September quarter, which is 16 per cent lower than previously. Household deposits increased by $15.8bn during the first three months of 2020-21, while mortgage lending increased by $5.6bn. CBA has advised that its net interest margin was lower than in the second half of 2019-20, primarily due to the impact of lower interest rates. CBA has also reported a sharp fall in the number of deferred loans since the end of the September quarter.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Banks shut ATMs and branches amid digital push and cost cuts

Original article by James Frost
The Australian Financial Review – Page: 18 : 9-Nov-20

Data presented to a federal parliamentary inquiry has highlighted the decline in the branch and ATM networks of Australia’s major banks over the last five years. The figures show that the number of branches and ATMs per 100,000 people has fallen by 33 per cent since 2015. Shadow assistant treasurer Andrew Leigh says the federal government has ignored the issue of branch closures, and says it has no plans to ensure that disadvantaged Australians continue to have access to banking services. The Australian Banking Association notes that the shift to digital banking has gathered pace during the coronavirus pandemic.

CORPORATES
AUSTRALIAN BANKING ASSOCIATION

NAB takes virus hit, digs in to aid recovery

Original article by James Frost, James Eyers
The Australian Financial Review – Page: 17 & 26 : 6-Nov-20

National Australia Bank has posted a cash profit of $3.7bn for the year to 30 September, which is 37 per cent lower than previously. The result was marred by credit impairment charges totalling $2.76bn, including a provision of $1.86bn for the impact of the coronavirus pandemic. Shareholders will receive a final dividend of $0.30 per share and a full-year payout of $0.60. NAB shares closed 3.2 per cent higher at $19.31 on 5 November.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Banks defiant on mortgage rates

Original article by Joyce Moullakis, Lachlan Moffet Gray
The Australian – Page: 17 & 21 : 5-Nov-20

Australia’s four largest banks will keep their variable home loan interest rates unchanged, despite the Reserve Bank’s decision to reduce the cash rate to a record low of 0.1 per cent. However, the "big four" banks will all reduce their fixed home loan interest rates, with some falling below two per cent for the first time. The majority of mortgage loans across the Australian financial sector have variable rates, although more borrowers are opting for fixed-rate loans in the low-interest rate environment.

CORPORATES
RESERVE BANK OF AUSTRALIA, 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

Westpac resumes dividend as profits plummet 62pc

Original article by James Frost, James Eyers
The Australian Financial Review – Page: Online : 3-Nov-20

Westpac announced on 2 November that it had recorded a full-year cash profit of $2.608 billion, down 62 per cent. Cash earnings by its consumer bank unit were down 12 per cent to $2.7 billion, while earnings by its business bank unit declined by 62 per cent to $734 million. Impairments for bad and doubtful debts were raised by $2.2 billion to $6.2 billion, while Westpac will pay a pay a fully franked final dividend of $0.31 per share on 18 December.

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

No benefit in rate cut: ANZ chief

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

ANZ warns of $528m profit hit

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

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

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

Big banks’ wealth retreat may be short-lived

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