BANKS AND BANKING – AUSTRALIA

Bendigo Bank has highest customer satisfaction among majors

roymorgansocial Leave a comment

Original article by Roy Morgan Research
Market Research Update – Page: Online : 28-Sep-17

A Roy Morgan Single Source survey has found that customer satisfaction with Bendigo Bank in August 2017 was 89.3%, making it the top performer among the 10 largest consumer banks. Not only was Bendigo the satisfaction leader but it improved its rating over the month by 0.9% points, against an overall decline of 0.2% points for banks in total. Other small banks such as ING Direct with 86.7%, Bank of Queensland (84.2%), Suncorp (83.0%) and St George (82.0%) also had high customer satisfaction ratings. The best performer among the four majors was the CBA with 80.2%, followed by Westpac on 78.5%, NAB (78.4%) and ANZ (77.3%). The overall average satisfaction for all banks was 80.8% in August. Meanwhile, the mortgage customers of each of the big four banks continue to be a drag on their overall satisfaction, despite historically low home-loan rates.

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

Competition probe shakes ‘four pillars’

roymorgansocial Leave a comment

Original article by Richard Gluyas
The Australian – Page: 19 & 22 : 20-Sep-17

Australian Competition & Consumer Commission chairman Rod Sims says it has a "neutral" position on the issue of mergers between the nation’s four major banks. However, the ACCC has used its submission to the Productivity Commission’s inquiry into competition in the financial system to urge it to examine the impact of the so-called "four pillars" policy. The ACCC has also asked the inquiry to consider whether the four pillars policy should be expanded to include smaller banks.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. PRODUCTIVITY COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Fees underpin Macquarie profit

roymorgansocial Leave a comment

Original article by Michael Roddan
The Australian – Page: 21 : 12-Sep-17

Macquarie Group has advised that its profit for the first half of 2017-18 will be higher than previously due to an increase in performance fees. However, the investment bank has told an investor roadshow that it expects full-year profit to be similar to its $A2.22bn result for 2016-17. Macquarie’s earnings profile has benefited from the group’s increased focus on annuity-style operations, while the group has also highlighted its risk management practices.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, DEUTSCHE BANK AG, THE GOLDMAN SACHS GROUP INCORPORATED, HILL SAMUEL BANK

‘Liar loans’ pumped up house prices

roymorgansocial Leave a comment

Original article by Jonathan Shapiro
The Australian Financial Review – Page: 1 & 8 : 12-Sep-17

UBS surveyed more than 900 Australian borrowers who had taken out a mortgage loan in the year to August 2017, finding that a third had not been truthful in terms of the information on their application. UBS states that the value of so-called "liar loans" is in excess of $A500 billion, and that these loans pose threats to both the banking sector and the overall economy. The ANZ Bank had the highest number of liar loans in the UBS survey, while respondents were most likely to have understated their expenses on their application.

CORPORATES
UBS HOLDINGS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA, MOODY’S INVESTORS SERVICE INCORPORATED, MORTGAGE AND FINANCE ASSOCIATION OF AUSTRALIA

CBA eyes bond market return after scandal

roymorgansocial Leave a comment

Original article by Jonathan Shapiro
The Australian Financial Review – Page: 15 : 11-Sep-17

The Commonwealth Bank of Australia may make a bond issue in the week beginning 11 September 2017. Australia’s large banks use such issues to help cover the gap between the amount of loans they have outstanding and the value of their deposits. If the CBA does proceed with the bond issue, it will be its first since AUSTRAC announced that it is taking legal action against it over alleged breaches of money-laundering regulations. The CBA raised around $A40 billion in fiscal 2017 from wholesale long-term debt.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, WESTPAC BANKING CORPORATION – ASX WBC, TRANSURBAN GROUP LIMITED – ASX TCL, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, MOODY’S ANALYTICS AUSTRALIA PTY LTD, ALTIUS ASSET MANAGEMENT PTY LTD, SANTOS LIMITED – ASX STO, WOODSIDE PETROLEUM LIMITED – ASX WPL

Funder backs CBA class action

roymorgansocial Leave a comment

Original article by Michael Roddan
The Australian – Page: 23 : 6-Sep-17

Listed litigation fund IMF Bentham has agreed to provide financial backing for a proposed shareholder class action against the Commonwealth Bank of Australia. The major bank’s shares have shed more than 10 per cent since early August, when Austrac initiated legal action over the CBA’s failure to comply with money-laundering laws. The class action is being undertaken by law firm Maurice Blackburn, which estimates that CBA could face a potential payout of at least $A200m. CBA could also incur sanctions in other countries where it has a presence.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, IMF BENTHAM LIMITED – ASX IMF, MAURICE BLACKBURN PTY LTD, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, FEDERAL COURT OF AUSTRALIA, CLSA AUSTRALIA PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC

HSBC joins mortgage war with 3.6pc home loan

roymorgansocial Leave a comment

Original article by Glenda Korporaal
The Australian – Page: 19 & 22 : 1-Sep-17

HSBC Australia CEO Martin Tricaud says the international bank intends to ramp up its local presence, with plans to expand its branch network from 31 outlets to 47 over the next two years. HSBC also aims to increase its Australian home loans business, with owner-occupiers who take out a mortgage before the end of 2017 to be offered an interest rate of 3.65 per cent. Tricaud says the Australian banking sector offers strong growth potential for HSBC, whose market share is about 1.5 per cent at present.

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, HSBC BANK PLC, AUSSIE HOME LOANS LIMITED

CBA needs outside CEO in ‘brutal market’

roymorgansocial Leave a comment

Original article by Jonathan Shapiro, James Thomson
The Australian Financial Review – Page: 17 : 31-Aug-17

The Commonwealth Bank of Australia’s money laundering scandal has focused attention on succession planning, with CEO Ian Narev set to step down by mid-2018. Perennial’s John Murray says CBA should select an external candidate, as the market considers any internal contenders to be tainted by the scandal. Morningstar also expects Narev’s successor to be an external appointment. Meanwhile, National Australia Bank CEO Andrew Thorburn says the bank has stressed the importance of its culture and values in meetings with staff in recent months.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, PERENNIAL VALUE MANAGEMENT AUSTRALIAN EQUITY FUND, MORNINGSTAR PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CREDIT SUISSE (AUSTRALIA) LIMITED, TRANS-TASMAN BUSINESS CIRCLE, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, BHP BILLITON LIMITED – ASX BHP, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, BORAL LIMITED – ASX BLD, DOWNER EDI LIMITED – ASX DOW

Visa moves to kill PINs with biometrics

roymorgansocial Leave a comment

Original article by Yolanda Redrup
The Australian Financial Review – Page: 19 : 29-Aug-17

Visa hopes it will not be too long before its card users will be able to do away with using PIN number or 16-digit card numbers to conduct transactions. Visa is looking to work with Australian banks to adopt biometric authentication protocols that will allow card users to make transactions by using their fingerprint, with the process aimed at both reducing fraud and cutting down transaction times. Visa’s Joe Cunningham would also like to see greater data sharing between banks and merchants.

CORPORATES
VISA INTERNATIONAL, AUSTRALIAN PAYMENTS CLEARING ASSOCIATION LIMITED

CBA faces $200m-plus class action

roymorgansocial Leave a comment

Original article by Ben Butler, Michael Roddan
The Australian – Page: 17 & 21 : 24-Aug-17

Investors who bought shares in the Commonwealth Bank of Australia between 17 August 2015 and 3 August 2017 will be eligible to participate in a proposed class action over the bank’s money-laundering scandal. CBA’s share price has fallen by six per cent since Austrac filed legal action on 3 August, slashing the bank’s market capitalisation by around $A8bn. Maurice Blackburn’s class action is expected to focus on CBA’s disclosures regarding Austrac’s investigation into the money-laundering allegations.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, MAURICE BLACKBURN PTY LTD, IMF BENTHAM LIMITED – ASX IMF, FEDERAL COURT OF AUSTRALIA, COMMINSURE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, VELOCITY TRADE LIMITED, FITCH RATINGS LIMITED