BANKS AND BANKING – AUSTRALIA

Time is money as CBA waits on cuts

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Original article by Cliona O’Dowd
The Australian – Page: 21 & 24 : 5-Jul-19

The Commonwealth Bank’s decision to delay a 19 basis point reduction in its variable home loan interest rates until 23 July will boost its interest income by $43m. The other three major banks will also gain additional interest income from mortgage customers by delaying rate cuts by periods ranging from nine days to two weeks. It is estimated that the big four banks’ move to delay passing on the official interest rate cut in full or in part will boost their interest income by a combined $97m.

CORPORATES
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, SHAW AND PARTNERS LIMITED, MOZO PTY LTD, HSBC AUSTRALIA HOLDINGS PTY LTD, FIRSTMAC LIMITED, ME BANK

ING home loan customers most satisfied just ahead of Bendigo Bank and Suncorp

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Original article by Roy Morgan
Market Research Update – Page: Online : 5-Jul-19

The satisfaction rating of the home loan customers of Australia’s big four banks was 71.1% in May, well below the 76.8% rating given by their non-home customers. The home loan customers of the other major banks all have much higher satisfaction than the big four and are closer to the rating given by their non-home loan customers. ING has the highest home loan customer satisfaction with 88.9%, followed by Bendigo Bank (86.2%) and Suncorp (81.0%). The CBA is the best performer among the big four with 72.5%, followed by Westpac (70.7%), NAB (70.4%) and ANZ (69.6%). These are some of the latest findings from Roy Morgan’s ‘Customer Satisfaction report on Consumer Banking in Australia’, May 2019. This report is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes and covers over two decades. The latest data in this release is for the six months to May 2019.

CORPORATES
ROY MORGAN LIMITED, ING BANK (AUSTRALIA) LIMITED, BENDIGO BANK, SUNCORP BANK, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Big four rate game plan takes shape

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Original article by James Frost
The Australian Financial Review – Page: 9 : 3-Jul-19

The ANZ Bank’s s variable mortgage interest rates for all customers will be reduced by 25 basis points, in line with the Reserve Bank’s official interest rate cut. The Commonwealth Bank in turn will reduce its rates for interest-only customers by 25 basis points, although those with principal and interest loans will receive a rate cut of just 19 basis points. Meanwhile, Westpac will reduce its mortgage interest rates by 20 basis points, and the ANZ Bank’s will be cut by 19 basis points.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, ATHENA HOME LOANS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY

ANZ squeezes savers more than borrowers

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Original article by James Frost
The Australian Financial Review – Page: 21 : 27-Jun-19

The ANZ Bank has defended its decision to reduce the interest rates on its popular ANZ Progress Saver and ANZ Online Saver accounts by 20 basis points. A spokesman says ANZ still has the best interest rates for comparable products among Australia’s major banks. Sally Tindall of RateCity warns that savers can expect interest rates to fall further, given that the Reserve Bank is tipped to reduce the cash rate again. ANZ reduced its mortgage interest rates by 18 basis points after the official interest rate cut in early June.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RATECITY PTY LTD, RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, UBANK, AUSTRALIA. DEPT OF THE TREASURY

Westpac admits to being less mature on non-financial risks

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Original article by Richard Gluyas
The Australian – Page: 21 : 25-Jun-19

Westpac has begun to implement the recommendations arising from a self-assessment of its culture and governance, while it will also take on board any feedback from the Australian Prudential Regulation Authority. APRA requested the major banks to undertake a self-assessment in the wake of governance scandals at the Commonwealth Bank. Westpac has not released the full report of its self-assessment, but shareholders have been told that the review showed that its management of non-financial risks can be improved.

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

Banks suffer as battle for home loans heats up

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Original article by Samantha Bailey
The Australian – Page: 21 : 20-Jun-19

Data from the Australian Prudential Regulation Authority shows that home loan approvals fell by 16.5 per cent year-on-year in the March quarter. The figures also show that the value of mortgage loans written by Australia’s major banks increased by just 2.6 per cent over the last year, compared with growth of eight per cent for customer-owned banks. The total assets of the latter increased by 1.6 per cent quarter-on-quarter, while the assets of the ‘big four’ banks declined by 0.4 per cent.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CUSTOMER OWNED BANKING ASSOCIATION

Search narrows for new NAB boss

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Original article by Joyce Moullakis
The Australian – Page: 21 : 19-Jun-19

National Australia Bank has declined to comment on progress regarding its search for a successor to former CEO Andrew Thorburn. However, sources have indicated that the shortlist of candidates has been trimmed and NAB has commenced a detailed assessment of internal candidates, who include Mike Baird and Anthony Healy. Thorburn stepped down in the wake of the Hayne royal commission, while NAB chairman Ken Henry will depart when a new CEO is appointed.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, RUSSELL REYNOLDS ASSOCIATES INCORPORATED, MEDIBANK PRIVATE LIMITED – ASX MPL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, ROYAL BANK OF SCOTLAND GROUP PLC, BANK OF IRELAND PLC, MACQUARIE GROUP LIMITED – ASX MQG, AMP LIMITED – ASX AMP

Big banks weather deposit storm

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Original article by James Frost
The Australian Financial Review – Page: 16 : 18-Jun-19

Westpac and the ANZ Bank elected not to pass on the full extent of the recent cut in official interest rates to their mortgage loan customers. As a result, they have not yet made changes to their deposit rates for retail customers, which is good news for customers who use interest from their accounts to help bolster their income. However, banks cannot maintain a gap between their mortgage rates and their deposit rates for too long, as this impacts on their bottom line.

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, RESERVE BANK OF AUSTRALIA, ISELECT LIMITED – ASX ISU, MACQUARIE BANK LIMITED – ASX MBL

Savers to be slugged $1.3b by rate cut

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Original article by James Frost
The Australian Financial Review – Page: 6 : 12-Jun-19

Data from Canstar shows that smaller banks have reduced their interest rates on at-call cash accounts by up to 30 basis points in the wake of the Reserve Bank’s official interest rate cut. The four major banks have yet to reduce their own rates on at-call accounts, but Finder’s Graham Cooke warns that is only a matter of time. It is estimated that savers’ income from the interest on at-call accounts will be slashed by around $1.3bn if the official interest rate cut is passed on in full.

CORPORATES
CANSTAR PTY LTD, RESERVE BANK OF AUSTRALIA, FINDER.COM.AU, AMP BANK LIMITED, SUNCORP BANK, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, BANK AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, MACQUARIE CREDIT UNION LIMITED, RATECITY PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC

Banks not passing on cut nothing new: Treasury

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Original article by Matthew Cranston, James Eyers
The Australian Financial Review – Page: 4 : 7-Jun-19

Westpac and ANZ have been criticised for withholding part of the Reserve Bank’s official interest rate cut. The central bank has cut the cash rate a total of 19 times since 2008, and analysis by the Treasury shows that there have been 13 occasions when at least one of the four major banks failed to pass on the full rate. The banks have also reduced their rates by a higher margin than the official interest rate cut on several occasions since the global financial crisis.

CORPORATES
RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. DEPT OF THE TREASURY