BANKS AND BANKING – AUSTRALIA

Fears of big job losses from inquiry fallout

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Original article by Michael Roddan
The Australian – Page: 20 : 15-May-18

Automation has already put around 50,000 financial services jobs at risk, and job losses in the sector may increase in the wake of the banking royal commission. Sally Auld of JPMorgan says the loss of jobs as a result of the inquiry could be greater than those shed during the last financial crisis. Tommy Wu of IBISWorld notes that the banking sector’s revenue has fallen by over $A10 billion in the last five years, and it could fall even further as a result of the royal commission.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, JP MORGAN AUSTRALIA LIMITED, IBISWORLD PTY LTD, AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, UBS HOLDINGS PTY LTD, RICE WARNER ACTUARIES PTY LTD, MOODY’S INVESTORS SERVICE INCORPORATED, MACQUARIE GROUP LIMITED – ASX MQG

CommBank finance boss Jesudason jumps ship

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Original article by James Eyers, Jonathan Shapiro, Will Willitts
The Australian Financial Review – Page: 11 & 14 : 15-May-18

The Commonwealth Bank of Australia has named Alan Docherty as its acting CFO following the sudden resignation of Rob Jesudason after less than a year in the role. Docherty is currently the CFO of the institutional banking and markets division, and he joined CBA in 2003. Jesudason’s departure for a role in Hong Kong is the latest setback for CEO Matt Comyn, with six key executives resigning since he succeeded Ian Narev. Jesudason has expressed interest in becoming CEO, but sources have indicated that he was not in contention.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BLOCK.ONE, CREDIT SUISSE AG, JP MORGAN AND COMPANY INCORPORATED, BARCLAYS BANK PLC, GE CAPITAL CORPORATION, McKINSEY AND COMPANY

Commonwealth Bank admits it broke law over fees

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Original article by Sarah Danckert, Clancy Yeates
The Sydney Morning Herald – Page: 3 : 11-May-18

The Commonwealth Bank of Australia has issued a statement acknowledging that its financial planners had breached the Corporations Act by charging fees for services that were not provided. However, the bank has rejected several of the open findings of the senior counsel assisting the banking royal commission with regard to its financial planning division. Meanwhile, Westpac has rejected all of the open findings of the royal commission regarding its financial planning business.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COUNT FINANCIAL LIMITED, COMMONWEALTH FINANCIAL PLANNING LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RI ADVICE GROUP PTY LTD, M3 FINANCIAL, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, DOVER FINANCIAL ADVISERS PTY LTD

CBA falls as legal costs take toll on profit

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Original article by Michael Roddan
The Australian – Page: 19 & 24 : 10-May-18

The Commonwealth Bank of Australia has posted an underlying cash net profit of $A2.35bn for the March quarter, which is nine per cent lower than previously. CBA has advised of an increase in home loan, personal loan and credit card arrears during the period, while its expenses rose by three per cent. Meanwhile, CBA has agreed to pay fines totalling $A25m to settle allegations that it manipulated the bank bill swap rate.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, WESTPAC BANKING CORPORATION – ASX WBC, DIGITAL FINANCE ANALYTICS, FEDERAL COURT OF AUSTRALIA

Westpac anger at royal commission tactics

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 14 : 8-May-18

Westpac’s shares rose $A0.24 to $A29.34 on 7 May after the bank reported an interim cash profit of $A4.25 billion, up six per cent. In releasing its latest results, Westpac took the opportunity to criticise the banking royal commission’s release of documents that had been critical of its lending standards. CEO Brian Hartzer also took the opportunity to restate the bank’s commitment to its BT Financial Group wealth business, despite other banks having indicated their intention to exit the wealth management sector.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, BT FINANCIAL GROUP PTY LTD, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, ALPHINITY INVESTMENT MANAGEMENT PTY LTD

ANZ scraps product-linked bonus score

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Original article by Alice Uribe
The Australian Financial Review – Page: 15 & 19 : 7-May-18

The ANZ Bank has announced that it will sack financial planners who twice fail a compliance audit, as the banking royal commission continues to reverberate among Australia’s 25,000 financial planners. ANZ has also announced that it will abolish product-linked bonuses for its financial planners, with CEO Shayne Elliott stating that the problems that the royal commission has revealed regarding financial planners have been created by a structure that rewards them for selling products.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, IOOF HOLDINGS LIMITED – ASX IFL

Bendigo Bank customers are most satisfied of the largest banks

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Original article by Roy Morgan
Market Research Update – Page: Online : 7-May-18

New research from Roy Morgan shows that customer satisfaction with Australia’s banks in the six months to March 2018 was 80.9%, down from 81.0% in February. This level still represents a positive result when seen in the context of the long-term monthly average of 73.8% since 2001. Bendigo Bank retained the highest satisfaction rating among the 10 largest consumer banks with 87.5% (down slightly from 87.8% in February). BankWest showed the biggest improvement in satisfaction, up 0.9% to 84.6%, followed by ING (up 0.8% to 87.1%), St. George (up 0.7% to 84.6%) and ANZ (up 0.3% points to 78.7%).

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

The way Australians bank

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Original article by Roy Morgan
Market Research Update – Page: Online : 7-May-18

A Roy Morgan Single Source survey shows that ATMs remain the most used banking channel in Australia, with 83.4% of Australians aged 14+ using an ATM in the year to March (down 0.8%). Internet Banking is the second most used banking channel, with 54.2% using Internet Banking in the last 12 months (down 2.0%). The rapid increase in the use of mobile banking, with its higher satisfaction levels compared to branches, appears to have affected the number who use it compared to visiting a branch. Mobile banking usage is at 46.5% (up 3.1%), beating visiting a branch at 45.1% (down 3.5%). Phone Banking also saw an increase on 2017, with 24.1% of Australians aged 14+ using Phone Banking (up 1.6%).

CORPORATES
ROY MORGAN LIMITED

Banks lower now than during GFC: Costello

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Original article by James Thomson, Tom McIlroy
The Australian Financial Review – Page: 5 : 4-May-18

Corporate Australia is getting tarnished by the banking royal commission, according to former federal treasurer Peter Costello. He says the banks survived the global financial crisis so unscathed that they became complacent, while the likelihood that the federal government’s full company tax cuts package will be passed by the Senate is looking highly unlikely because of the royal commission. James Pearson, the head of the Australian Chamber of Commerce & Industry, says companies in other sectors should not have to miss out on tax cuts because of failings in the financial services sector.

CORPORATES
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. DEPT OF FINANCE, BUSINESS COUNCIL OF AUSTRALIA

NAB joins bank retreat from wealth

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 20 : 4-May-18

National Australia Bank CEO Andrew Thorburn has refuted suggestions that its decision to sell the MLC wealth management unit has been prompted by the banking royal commission. However, he concedes that the commission’s revelations have meant that banks must change their approach to business. Thorburn also notes that the NAB is aware that it may not be able to sell MLC as a single unit if the commission decides that financial planners should no longer be able to work for businesses that manufacture investment and superannuation products.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MLC LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NIPPON LIFE INSURANCE COMPANY LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, CLIME ASSET MANAGEMENT PTY LTD, ONEPATH AUSTRALIA LIMITED, ZURICH FINANCIAL SERVICES AG, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, JBWERE LIMITED, NABTRADE, GREAT WESTERN BANK, CLYDESDALE BANK PLC