BANKS AND BANKING – AUSTRALIA

Westpac CEO says political consensus needed to lift business confidence

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Original article by James Eyers,James Frost
The Australian Financial Review – Page: Online : 7-Nov-17

Westpac CEO Brian Hartzer has urged Australia’s politicians to find common ground on issues such as energy policy and infrastructure spending, so as to encourage business confidence. He made his remarks while announcing on 6 November that Westpac had recorded an annual profit of $A8.1 billion. Westpac predicts that Australian gross domestic product will grow by just 2.5 per cent in 2018, compared with forecast global growth of 3.5 per cent. Hartzer does not expect any change in interest rates for some time to come.

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

NAB wields axe despite $6.6bn profit

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Original article by Michael Roddan
The Australian – Page: 19 & 23 : 3-Nov-17

National Australia Bank has posted a 2016-17 cash profit of $A6.64bn, which is 2.5 per cent higher than previously. The earnings of its business banking division rose by 6.3 per cent to $A2.8bn in the year to September 2017, while its consumer banking and wealth division reported earnings growth of 4.3 per cent to $A1.6bn. NAB has revealed plans to slash costs by $A1bn by 2020. This will include the loss of 6,000 jobs, which equates to about 18 per cent of its workforce, although NAB also intends to recruit 2,000 people with digital and technology skills as part of its focus on automation.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, NIPPON LIFE INSURANCE COMPANY LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, CLSA AUSTRALIA PTY LTD

Westpac in so deep it ‘fixed rate pricing’

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Original article by Richard Gluyas
The Australian – Page: 17 & 21 : 1-Nov-17

The Federal Court has heard a series of recorded conversations in which Westpac staff allegedly discussed strategies for manipulating the bank bill swap rate. The taped conversations were part of the Australian Securities & Investments Commission’s evidence against the bank, which has elected to contest the allegations of market manipulation rather than agree to a settlement. Other evidence tendered in court by ASIC included email messages from Westpac staff and the minutes from Australian Financial Markets Association meetings.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN FINANCIAL MARKETS ASSOCIATION INCORPORATED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Elliott wary as ANZ profit surges 18pc

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Original article by Michael Roddan
The Australian – Page: 19 & 22 : 27-Oct-17

The ANZ Bank has posted a 2016-17 cash profit of $A6.9bn, which is 18 per cent higher than previously. Revenue was one per cent lower, and CEO Shayne Elliott notes that strong competition in the banking sector is making it harder to achieve revenue growth. He adds that ANZ will continue to closely monitor its mortgage book, given the rising levels of household debt and low growth in wages. Shareholders will receive a final dividend of $A0.80 share, and a full-year payout of $A1.60.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, IOOF HOLDINGS LIMITED – ASX IFL, UBS HOLDINGS PTY LTD, DIGITAL FINANCE ANALYTICS, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

CBA remains satisfaction leader among Australia’s major four banks

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 25-Oct-17

A Roy Morgan Single Source survey has found that customer satisfaction with the Commonwealth Bank of Australia was 79.9% in the six months to September 2017, and despite a decline of 0.3% points from August, it has remained the satisfaction leader among the four major banks since July 2015. Satisfaction with banks overall has declined from 81.7% to 80.8% over the last 12 months. The four major banks in total have declined by 1.0% points to 78.8%, the mutual banks have declined by 0.6% points to 90.0% and the foreign banks are down 0.6% points to 83.1%. Despite these declines, overall bank satisfaction remains well above the long-term average of 73.9% established since 2001. Meanwhile, the mortgage customers of each of the four major banks continue to be a drag on their overall satisfaction, despite historically low home-loan rates. Over the last 12 months, satisfaction among the big four’s home-loan customers has fallen by 0.2% to 75.7%, leaving it well below the satisfaction of non-mortgage customers with 79.6%.

CORPORATES
ROY MORGAN RESEARCH 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

Speculation ends as ABA names ANZ’s Elliott as chairman

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Original article by James Frost
The Australian Financial Review – Page: 13 : 17-Oct-17

ANZ Bank CEO Shayne Elliott will succeed his National Australia Bank counterpart Andrew Thorburn as chairman of the Australian Bankers’ Association. The role is traditionally rotated between the CEOs of the four major banks, and Ian Narev had been expected to take up the role prior to announcing that he will step down as Commonwealth Bank CEO by mid-2018. Elliott had taken a less hostile approach to the Federal Government’s proposed bank levy than his peers earlier in 2017.

CORPORATES
AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN LABOR PARTY

Westpac ‘rips off clients’ with life insurance

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Original article by Anthony Klan
The Australian – Page: 1 & 6 : 13-Oct-17

Shine Lawyers is leading a class action against Westpac and its BankSA, St George and Bank of Melbourne subsidiaries. The legal action alleges that Westpac charges more for life insurance policies when taken out through a Westpac financial planner than through a non-Westpac planner. Janice Shaddler of Shine says the Westpac customers it is representing are feeling "incredibly let down" for having trusted their Westpac adviser to do the right thing by them. A spokesman for Westpac says it will investigate the allegations.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, BANK OF SOUTH AUSTRALIA LIMITED, ST GEORGE BANK LIMITED, BANK OF MELBOURNE LIMITED, SHINE LAWYERS, SHINE CORPORATE LIMITED – ASX SHJ, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Westpac takes knife to transaction fees

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Original article by James Eyers
The Australian Financial Review – Page: 13 & 16 : 11-Oct-17

Westpac has revised its fees and charges for legacy products that pre-date online banking and reflect an era when most transactions were made in bank branches. Amongst other things, all personal transaction accounts will have a maximum account-keeping fee of $A5 a month, while Westpac will abolish transaction fees on all personal accounts. George Frazis, the head of consumer banking, says Westpac will make further changes to its fees and charges.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, AUSTRALIAN LABOR PARTY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

CBA faces investor class action

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Original article by James Frost
The Australian Financial Review – Page: 4 : 10-Oct-17

Andrew Watson of law firm Maurice Blackburn says its class action against the Commonwealth Bank could be the largest ever in Australia. The firm will seek compensation for retail and institutional investors who bought the bank’s shares between 1 July 2015 and 3 August 2017. The class action centres on the bank’s failure to make adequate disclosures regarding the money-laundering scandal. Austrac’s revelation that it was investigating the bank prompted a sharp fall in its share price.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MAURICE BLACKBURN PTY LTD, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, IMF BENTHAM LIMITED – ASX IMF

NAB simplifies its small business lending contracts

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Original article by James Eyers
The Australian Financial Review – Page: 19 : 6-Oct-17

National Australia Bank has advised that its standard contract for small business loans has been streamlined to make it "simple, fairer and more transparent". The number of clauses in the standard contract has been reduced from 24 to just 17, while it includes a summary of key terms in plain English. The new contracts will apply to about 98.7 per cent of the bank’s business customers. The move to simplify small business lending contracts follows criticism of the banking sector’s existing contracts by small business ombudsman Kate Carnell earlier in 2017.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, AUSTRALIAN LABOR PARTY