BANKS AND BANKING – AUSTRALIA

Greens on mission to break up the banks

roymorgansocial Leave a comment

Original article by Adam Creighton
The Australian – Page: 8 : 8-Aug-18

Australian Greens leader Richard Di Natale says action is needed to address the "toxic culture" within the banking sector that has arisen due to the vertical integration model. The Greens propose to limit financial services groups to one of four roles, such as traditional banking services or asset management. Greens senator Peter Whish-Wilson advocates breaking up the banks, arguing that financial complexity has benefited the sector much more than consumers.

CORPORATES
AUSTRALIAN GREENS, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. PRODUCTIVITY COMMISSION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AMP LIMITED – ASX AMP

NAB’s fee strategy in spotlight

roymorgansocial Leave a comment

Original article by Joanna Mather
The Australian Financial Review – Page: 8 : 7-Aug-18

The banking royal commission has been told that National Australia Bank retained "grandfathered" commissions after merging five separate superannuation funds in 2016. A former NAB executive, Paul Carter, told the inquiry that the bank had been concerned about the impact that abolishing the commissions would have on revenue, as financial planners could potentially have responded to the move by directing clients to other products. The inquiry was also told that NAB failed to inform clients that they could opt out of paying a "plan service fee".

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MLC LIMITED, MLC MASTERKEY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, NULIS

Macquarie’s new chief sees upside

roymorgansocial Leave a comment

Original article by Joyce Moullakis, Vesna Poljak
The Australian Financial Review – Page: 1 & 21 : 27-Jul-18

Macquarie Group has announced that Shemara Wikramanayake will succeed Nicholas Moore as CEO of the investment bank. Wikramanayake, who joined Macquarie in 1987, will take up her new job towards the end of November. She has been the head of Macquarie Asset Management, which has assets of $A534.1 billion since 2008. Macquarie’s shares closed 2.6 per cent lower at $A121.70 on 26 July.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, MACQUARIE ASSET MANAGEMENT, QANTAS AIRWAYS LIMITED – ASX QAN, WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, PERENNIAL INVESTMENT PARTNERS LIMITED, SHAW AND PARTNERS LIMITED, INDIAN PACIFIC ASSET MANAGEMENT

Bank customers becoming less likely to recommend their bank

roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 27-Jul-18

New results from Roy Morgan shows that bank customers are now less likely to recommend their bank than they were prior to the Finance Royal Commission. In February 2018, 59.0% of main financial institution bank customers were highly likely to recommend their bank to a friend or colleague, but it has fallen to 54.4% in June. It is now at the lowest monthly level since November 2016 when it was 54.1%, although it remains well up on the 45.8% of June 2008. In the six months to June 2018, 83.3% of ING customers who consider it to be their MFI were very likely to recommend it, the highest level of the 10 largest banks and an increase of 12.6% points over the last year. In second place was Bendigo Bank with 68.7%, followed by Bank of Queensland (61.2%) and St George (60.5%). Roy Morgan’s "Advocacy Report – Financial Institutions June 2018" is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes, including over 4,000 bank customers per month.

CORPORATES
ROY MORGAN LIMITED, ING BANK (AUSTRALIA) LIMITED, BENDIGO BANK, BANK OF QUEENSLAND LIMITED – ASX BOQ, ST GEORGE BANK LIMITED

Bank customer satisfaction and NPS slip further during Finance Royal Commission

roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 23-Jul-18

New results from Roy Morgan shows that bank customer satisfaction in Australia has dropped from 82.3% in January 2018, prior to the Finance Royal Commission, to 78.5% in May and 78.3% in June. Bank customer satisfaction is now at the lowest monthly level since April 2012, but it still remains above the long-term average of 73.8% since 2001, and well up on the 60.0% in January 2001. Roy Morgan’s Net Promoter Score for banks has declined in line with satisfaction, going from 0.49 in January to minus 4.03 in June. ING had the highest level of customer satisfaction of the 10 largest banks in the six months to June, at 88.6% (up 0.5% points over the last 12 months), ahead of Bendigo Bank with 87.7% (down 0.9% points over the year). CBA remained the leader among the big four banks with a customer satisfaction rating of 78.3%. All of the big four showed declines in satisfaction over the year. Roy Morgan’s "Customer Satisfaction-Consumer Banking in Australia June Report" is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes, including over 4,000 bank customers per month.

CORPORATES
ROY MORGAN LIMITED, ING BANK (AUSTRALIA) LIMITED, BENDIGO BANK, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Bankwest branch closures hit 200 workers as customers shift online

roymorgansocial Leave a comment

Original article by Alice Uribe, David Marin-Guzman
The Australian Financial Review – Page: 19 : 19-Jul-18

Bankwest MD Rowan Munchenberg says consumers’ growing preference for mobile banking has prompted the Commonwealth Bank subsidiary to close 29 bank branches in New South Wales, Victoria and Queensland. The move will result in the loss of 200 jobs, and the Finance Sector Union’s national secretary Julia Angrisano says Bankwest should have engaged in more consultation with staff. She has identified digital disruption as the biggest issue facing the financial services industry.

CORPORATES
BANKWEST, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, FINANCE SECTOR UNION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

APRA backs banks over Hayne probe

roymorgansocial Leave a comment

Original article by James Frost
The Australian Financial Review – Page: 1 & 2 : 19-Jul-18

The Australian Prudential Regulation Authority has defended the banking sector in its submission to the royal commission’s fourth round of public hearings. APRA argued amongst other things that banks have a right to make a profit and to call in bad debts when a borrower is unable to repay a loan. APRA was responding to questions raised by royal commissioner Ken Hayne regarding the need to balance the interests of banks and customers who are experiencing financial problems.

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

Perpetual motion: Lloyd to lead NAB wealth spin-off

roymorgansocial Leave a comment

Original article by Cliona O’Dowd
The Australian – Page: 17 & 21 : 18-Jul-18

National Australia Bank has advised that Geoff Lloyd will become CEO of its MLC wealth business on 1 September. Lloyd recently stepped down as CEO of Perpetual after six years, a period which saw strong growth in its profits and share price. NAB plans to divest MLC via a sharemarket float or trade sale, and Lloyd says the opportunity to grow the business as a stand-alone wealth manager was a key reason for his decision to take on the role. The spin-off will include NAB’s superannuation and financial planning businesses.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MLC LIMITED, PERPETUAL LIMITED – ASX PPT, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, IOOF HOLDINGS LIMITED – ASX IFL, JBWERE LIMITED, NABTRADE, AMP LIMITED – ASX AMP, LEND LEASE GROUP LIMITED – ASX LLC, NIPPON LIFE INSURANCE COMPANY LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Westpac to quit SMSF lending

roymorgansocial Leave a comment

Original article by Duncan Hughes, Joanna Mather
The Australian Financial Review – Page: 6 : 17-Jul-18

Westpac will cease offering new loans to self-managed superannuation funds that wish to invest in property at the end of July. Chris Balalovski of BDO notes that there does not seem to be any problems with losses in the SMSF sector as regards property, and that Westpac’s decision could be more to do with negative regulatory or consumer sentiment towards loans to SMSFs. Jordan George from the SMSF Association says it is his understanding that the Commonwealth Bank and Macquarie still provide loans to SMSFs, but that the National Australia Bank and the ANZ Bank do not lend to the sector.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, BDO AUSTRALIA LIMITED, SMSF ASSOCIATION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE GROUP LIMITED – ASX MQG, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, BANK OF MELBOURNE LIMITED, ST GEORGE BANK LIMITED, BANK OF SOUTH AUSTRALIA LIMITED

Banks face $70b gap in funding

roymorgansocial Leave a comment

Original article by Jonathan Shapiro
The Australian Financial Review – Page: 1 & 6 : 16-Jul-18

Australia’s banks have experienced an increase in the gap between bank loans and deposits, according to National Australia Bank analysis. The funding gap rose from $A390 billion in the June 2017 quarter to $A457 million in the March 2018 quarter. The increase was attributed to households needing to access more of their savings and superannuation funds shifting their cash into other asset classes. Banks increased lending by 4.8 per cent in the 12 months to May, but deposits rose by just over two per cent.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, TD SECURITIES, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, AMP LIMITED – ASX AMP, MACQUARIE GROUP LIMITED – ASX MQG