BANKS AND BANKING – AUSTRALIA

End is nigh for big four: Carnegie

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Original article by Glenda Korporaal
The Australian – Page: 29 : 16-Mar-18

Maile Carnegie, the ANZ Bank’s group executive for digital banking, forecasts that the four major banks will no longer dominate the Australian market within 5-10 years, with banks opting to focus on certain segments of the market. She also forecasts a greater role for technology in delivering banking services, while banks that provide services that customers actually want will be the most successful in future.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, GOOGLE AUSTRALIA PTY LTD, AMAZON.COM INCORPORATED, ALIBABA.COM CORPORATION, UBER AUSTRALIA PTY LTD, APPLE INCORPORATED

CBA executive was warned of possible BBSW investigation

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Original article by Ben Butler, Michael Roddan
The Australian – Page: 19 & 23 : 9-Mar-18

The Federal Court has released documents filed by the Australian Securities & Investments Commission in its case against the Commonwealth Bank of Australia for allegedly manipulating the bank bill swap rate. The documents show that CBA executives and employees had discussed influencing the BBSW as far back as 2001. Amongst other things, CBA executive Paul Bennett told former treasurer Lyn Cobley in 2011 that "aggressive" behaviour in the BBSW market by a rival bank could attract regulatory scrutiny.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, FEDERAL COURT OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, PIMCO AUSTRALIA PTY LTD, HSBC AUSTRALIA HOLDINGS PTY LTD

Bank advocacy highest among App users

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Original article by Roy Morgan
Market Research Update – Page: Online : 1-Mar-18

A Roy Morgan Single Source survey has found that bank customers using an App on a mobile phone or tablet to deal with their bank are more likely to recommend them to a friend or colleague compared to those accessing their bank using other channels. In the 12 months to January 2018, 68.7% of customers who dealt with their bank using an App on a mobile phone or tablet said they were highly likely to recommend their bank to others. This is based on them scoring an 8, 9 or 10 on a possible 10-point likelihood scale. This level of advocacy is well above that of the more traditional method of dealing with banks – the branches – with 64.7% being high advocates. Internet banking using a website is currently the most common method for dealing with banks, but it is losing some ground to the use of Apps on mobile phones or tablets.

CORPORATES
ROY MORGAN LIMITED

Satisfaction with banks up again in January

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Original article by Roy Morgan
Market Research Update – Page: Online : 28-Feb-18

New research from Roy Morgan shows that customer satisfaction with Australia’s banks in the six months to January 2018 was 81.2%, up from 80.8% in December. This is the best figure seen since June 2017, and it is now well above the long-term average of 73.8% calculated since 2001. The Commonwealth Bank again had the highest customer satisfaction rating of the big four in December (up 0.5 % at 80.1%), followed by NAB (up 0.5% to 79.1%). However, Bendigo Bank (88.4%) had the highest customer satisfaction rating among the 10 largest consumer banks, followed by Bank of Queensland (85.8%). Meanwhile, the mortgage customers of the smaller banks continue to have higher satisfaction ratings than the big four.

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

Satisfaction with banks up again in January

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Original article by Roy Morgan
Market Research Update – Page: Online : 28-Feb-18

New research from Roy Morgan shows that customer satisfaction with Australia’s banks in the six months to January 2018 was 81.2%, up from 80.8% in December. This is the best figure seen since June 2017, and it is now well above the long-term average of 73.8% calculated since 2001. The Commonwealth Bank again had the highest customer satisfaction rating of the big four in December (up 0.5 % at 80.1%), followed by NAB (up 0.5% to 79.1%). However, Bendigo Bank (88.4%) had the highest customer satisfaction rating among the 10 largest consumer banks, followed by Bank of Queensland (85.8%). Meanwhile, the mortgage customers of the smaller banks continue to have higher satisfaction ratings than the big four.

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

ANZ ramps up home loan growth in mortgage race

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Original article by James Frost
The Australian Financial Review – Page: 19 : 21-Feb-18

The ANZ Bank has advised that its mortgage lending grew at a faster than the broader sector in the December 2017 quarter. However, the number of residential home loans that are in arrears increased from 0.59 per cent to 0.60 per cent quarter-on-quarter. ANZ’s quarterly statement on bank capital also shows that its customers continued to switch from interest-only loans principal-and-interest loans during the quarter, while its common equity tier one capital ratio rose from 10.57 per cent to 10.82 per cent.

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

NAB posts $1.65b in Q1 cash profit

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Original article by James Frost
The Australian Financial Review – Page: 21 : 9-Feb-18

Shares in National Australia Bank closed 2.3 per cent higher at $A28.90 on 8 February, after the major bank reported a cash profit of $A1.65bn for the first quarter of 2017-18. The result was three per cent higher than previously, while there was a 2.4 per decline in bad and doubtful debts. However, NAB’s expenses increased by four per cent during the quarter, and the bank expects expenses to rise by another 5-8 per cent during the remainder of the financial year. Citigroup has upgraded its recommendation on NAB’s shares to "buy".

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CITIGROUP PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, INVESTORS MUTUAL LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

CBA’s half-year profit misses expectations

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Original article by James Frost
The Australian Financial Review – Page: 13 & 16 : 8-Feb-18

The Commonwealth Bank of Australia has posted a 2017-18 interim cash profit of $A4.73bn, which is 1.9 per cent lower than previously. The result was marred by $A575m worth of provisions, including some $A375m associated with Austrac’s investigation into money-laundering allegations. CBA’s cash profit rose 5.8 per cent to $A5.11 billion if the provisions are excluded. Meanwhile, CBA’s retail banking division has reported a cash profit of $A2.653bn, an increase of eight per cent, while its business and private banking division’s cash profit rose by nine per cent to $A960m.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, ARGO INVESTMENTS LIMITED – ASX ARG, PERENNIAL INVESTMENT PARTNERS LIMITED

Choice urges Hayne focus on unfair fees

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 15 : 8-Feb-18

Consumer group Choice has used its submission to the banking royal commission to urge the inquiry to examine issues such as the use of trailing commissions in the financial services sector and the methods used to calculate fees and charges. Choice has argued that unfair fees is a key issue that the general public would like the royal commission to address. Choice has also criticised the financial services industry’s self-regulation regime, noting the shortcomings of self-regulation for insurers in particular.

CORPORATES
AUSTRALIAN CONSUMERS’ ASSOCIATION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Banks watch as capital city unit crisis unfolds

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Original article by Robert Gottliebsen
The Australian – Page: 21 : 31-Jan-18

The yield on US 10-year government bonds peaked at 2.73 per cent in late January, and the policies of President Donald Trump could see yields rise further. This would have major implications for Australia’s banks, which source 30-40 per cent of their funding from offshore. Australian banks are in turn heavily exposed to the residential and retail property markets, and a sharp rise in global interest rates would put downward pressure on asset values in these sectors. This would be of particular concern for the inner city apartment markets in Melbourne, Sydney and Brisbane, where there are already fears of an oversupply.

CORPORATES
UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA