BANKS AND BANKING – AUSTRALIA

CommBank CEO Matt Comyn fronts banking royal commission

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Original article by Alexis Carey
News.com.au – Page: Online : 20-Nov-18

Commonwealth Bank CEO Matt Comyn has told the financial services royal commission that the major bank has tended to react to misconduct rather than taking action to prevent it in the first place. Comyn also conceded that there are "inherent risks" associated with a staff bonus scheme. However, he struggled to explain why a fixed salary would not be sufficient for the majority of the bank’s employees. The royal commission’s interim report noted that variable pay can encourage a culture of misconduct in the banking sector.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, MACQUARIE GROUP LIMITED – ASX MQG, AMP LIMITED – ASX AMP, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Banks might be warming to lithium

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 16-Nov-18

Patrick Cocquerel of Westpac says the lack of a benchmark price for lithium has made banks somewhat reluctant to provide financing for Australian lithium producers. The nation’s burgeoning lithium industry has instead been largely financed via debt, equity, specialist lenders and payments from forward sales of the metal. Foreign banks have also been more willing to provide financing for lithium projects, but Cocquerel notes that local banks – including Westpac – are becoming more active in the sector.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, PILBARA MINERALS LIMITED – ASX PLS, GALAXY RESOURCES LIMITED – ASX GXY, BNP PARIBAS SA, KIDMAN RESOURCES LIMITED – ASX KDR, SOCIEDAD QUIMICA Y MINERA SA, S&P GLOBAL MARKET INTELLIGENCE, ALBERMARLE CORPORATION

CBA, NAB chairmen to face Hayne heat

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Original article by Richard Gluyas
The Australian – Page: 23 : 14-Nov-18

Commonwealth Bank of Australia chair Catherine Livingstone will appear before the financial services royal commission on 19 November. National Australia Bank chairman Ken Henry is expected to front the inquiry in the following week. The CEOs of the four major banks will also give evidence during the final round of public hearings, along with Macquarie Group’s Nicholas Moore, AMP’s Mike Wilkins and the heads of ASIC and APRA. CBA and NAB attracted criticism in the royal commission’s interim report.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACQUARIE GROUP LIMITED – ASX MQG, AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

CBA to turn fully green by 2030

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Original article by Mark Ludlow
The Australian Financial Review – Page: 10 : 14-Nov-18

The Commonwealth Bank of Australia aims to source 65 per cent of its electricity requirements from renewable sources by 2019, with a target date of 2030 for becoming solely reliant on renewables. As part of this strategy, CBA has secured a 12-year deal to source 96,000 megawatts annually from the Sapphire wind farm. CBA estimates that its direct emissions have been cut by 54 per cent since 2009. The bank will also become the first Australian company to join the global RE100 initiative, whose members have agreed to fully transition to renewables by 2050.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RE100, CWP RENEWABLES, PARTNERS GROUP AUSTRALIA PTY LTD, THE CLIMATE GROUP, CDP, SONY CORPORATION, PRICEWATERHOUSECOOPERS, LYFT INCORPORATED, INTERNATIONAL ENERGY AGENCY

Banks pledge to lend but with caveats

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 12-Nov-18

Australia’s major banks have urged the financial services royal commission not to over-regulate the way in which they assess corporate borrowers. The banks state that this would make it harder to increase their lending to small and medium enterprises. Their urgings have come as federal Treasurer Josh Frydenberg called upon the banks to "keep open the books", while National Australia Bank executive Anthony Healy says the bank is more willing to lend to SMEs without proper security.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. DEPT OF THE TREASURY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC

CBA vows to repair brand at fiery AGM

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Original article by Joyce Moullakis
The Australian – Page: 21 : 8-Nov-18

The Commonwealth Bank of Australia’s remuneration report was passed by a majority of votes cast at its 2018 AGM, with a dissenting vote of just six per cent. CBA chair Catherine Livingstone told shareholders that the bank will undertake a "systematic overhaul" of its compliance and governance structures in the wake of a series of scandals and the misconduct exposed by the banking royal commission. CEO Matt Comyn said the bank is also taking heed of feedback after he wrote to eight million customers in September.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, FEDERAL COURT OF AUSTRALIA

Westpac challenged on growth

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Original article by Joyce Moullakis
The Australian – Page: 23 : 7-Nov-18

Credit Suisse and Bell Potter have upgraded their earnings forecasts for Westpac following the release of the bank’s latest full-year financial results. Credit Suisse expects Westpac’s cash profit to rise to $8.29bn in 2018-19, after a flat profit of $8.07bn for 2017-18. Meanwhile, Macquarie Group and Morgan Stanley have reduced their earnings-per-share forecasts, and Victor German of Macquarie expects Westpac’s earnings growth in 2018-19 to be "negligible".

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, CREDIT SUISSE (AUSTRALIA) LIMITED, BELL POTTER SECURITIES LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, MORGAN STANLEY AUSTRALIA LIMITED

Westpac not wedded to advice arm

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Original article by Joyce Moullakis
The Australian – Page: 17 & 21 : 6-Nov-18

Westpac has posted a cash profit of $8.07bn for the year o 30 September, which is in line with the previous financial year. Its consumer banking division’s earnings were flat, although its business banking arm performed well. Meanwhile, CEO Brian Hartzer says Westpac remains committed to its BT Financial division, although he says the bank may be willing to consider divesting its in-house financial planning business. Westpac boasted 803 salaried and aligned financial planners at the end of the financial year.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, BT FINANCIAL GROUP PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MLC LIMITED, IOOF HOLDINGS LIMITED – ASX IFL, SWITZER DIVIDEND GROWTH FUND (MANAGED FUND) – ASX SWT, MORGAN STANLEY AUSTRALIA LIMITED

Big four feel royal commission fallout

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Original article by Joyce Moullakis, Samantha Bailey
The Australian – Page: 21 : 6-Nov-18

Australia’s four largest banks have reported a combined profit of $29.5bn for 2017-18, which is 5.5 per cent lower than previously. Tim Dring of Ernst & Young notes that the big four banks are facing challenges such as a slowing housing market, customer remediation costs and the impact of the financial services royal commission. However, he adds that the banks are also benefiting from a sharp fall in bad and doubtful debts.

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, ERNST AND YOUNG, SWITZER DIVIDEND GROWTH FUND (MANAGED FUND) – ASX SWT, KPMG AUSTRALIA PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

NAB goes back to business for growth

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Original article by Joyce Moullakis
The Australian – Page: 17 & 21 : 2-Nov-18

National Australia Bank has posted cash earnings of $5.7bn for 2017-18, which is 14 per cent lower than previously. Cash earnings for the year to 30 September fell by two per cent when restructuring costs and customer remediation charges are excluded. NAB’s consumer and wealth management division’s earnings fell by 5.8 per cent, although its business and private banking division’s earnings rose 2.5 per cent. CEO Andrew Thorburn is upbeat about NAB’s earnings outlook.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ARNHEM INVESTMENT MANAGEMENT PTY LTD, MLC LIFETIME COMPANY LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MITSUBISHI UFJ FINANCIAL GROUP INCORPORATED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY