BANKS AND BANKING – AUSTRALIA

Morrison warns all options open

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Original article by Andrew Tillett, James Eyers, Sally Patten, James Frost
The Australian Financial Review – Page: 1 & 8 : 9-Aug-17

Proxy advisers and institutional investors have welcomed the Commonwealth Bank of Australia’s decision to reduce executives’ short-term bonuses in the wake of the money-laundering scandal. However, they argue that CBA must take further action, while federal Treasurer Scott Morrison has told CBA chair Catherine Livingstone that the Government will look at a range of sanctions. The CBA scandal has resulted in increased pressure for the Government to hold a royal commission into banks, but Prime Minister Malcolm Turnbull has warned that doing so could jeopardise AUSTRAC’s case against CBA.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CGI GLASS LEWIS PTY LTD, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, UNISUPER LIMITED, OWNERSHIP MATTERS PTY LTD, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION

CBA tipped to grind out $9.8b profit

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Original article by James Frost
The Australian Financial Review – Page: 16 : 8-Aug-17

Analysts expect the Commonwealth Bank of Australia to post a cash profit of $A4.9bn for the second half of 2016-17, an increase of 5.8 per cent, and a full-year cash profit of $A9.8bn. The banking major’s provision for bad and doubtful debts is likely to remain largely unchanged, while its net interest margin is tipped to have declined by two basis points in the second half. CBA’s earnings guidance is likely to come under scrutiny in the wake of its money-laundering scandal, while the bank is forecast to increase its dividend for the second half to $A2.24 per share.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, UBS HOLDINGS PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN

ANZ restructure raises union fears of significant job losses

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Original article by David Marin-Guzman, James Frost
The Australian Financial Review – Page: 13 & 16 : 1-Aug-17

ANZ Bank CEO Shayne Elliott will emphasis on 1 August 2017 via a video to all staff that its Australasian focus is on retail customers and on corporate customers in Asia. The video will follow on from a message sent by Elliott on the previous day in which he called for changes to ANZ’s work practices and flexibility. Julia Angrisano of the Finance Sector Union says it is concerned that what appears to be a major reorganisation by ANZ will lead to job cuts at the bank.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FINANCE SECTOR UNION, WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE GROUP LIMITED – ASX MQG

Big four banks improve satisfaction while smaller banks decline

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 1-Aug-17

A Roy Morgan Single Source survey has found that the customer satisfaction rating of Australia’s four major banks was 79.8% in the six months to June 2017, compared with 79.5% in the six months to June 2016. The combined satisfaction rating of all other banks declined by 0.9% points to 84.8% over this period. For more than a decade the big four banks have been gradually closing the gap on the lead held by the other banks. In 2005, the overall satisfaction level of the smaller banks was 77.7%, a lead of 11.1% points over the big four (66.6%), but it is now reduced to 5.0%. Meanwhile, the Commonwealth Bank continues to have the highest customer satisfaction rating among the big four banks (81.0%), ahead of National Australia Bank (79.8%).

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, TEACHERS MUTUAL BANK LIMITED, HERITAGE BANK LIMITED, BEYOND BANK AUSTRALIA

Customer satisfaction ticks up for big four

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Original article by James Frost
The Australian Financial Review – Page: 17 : 31-Jul-17

Teachers Mutual Bank enjoys the highest level of customer satisfaction among all Australian banks, according to Roy Morgan Research’s latest survey of the sector. It is followed by Heritage Bank and Bendigo & Adelaide Bank, while Teachers Mutual Bank’s customers are most likely to recommend it to a friend. The Commonwealth Bank is the most highly rated of the big four banks in terms of customer satisfaction, followed by National Australia Bank. Collectively, customers of the big four banks are slightly more satisfied with them than they were a year ago, while customer satisfaction with other banks has fallen by 0.9 per cent.

CORPORATES
TEACHERS MUTUAL BANK LIMITED, ROY MORGAN RESEARCH LIMITED, HERITAGE BANK LIMITED, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, ING BANK (AUSTRALIA) LIMITED

ANZ joins the party with addition of Samsung Pay

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Original article by James Frost
The Australian Financial Review – Page: 14 : 18-Jul-17

The ANZ Bank’s Bob Belan notes that it has become the first major bank to allow customers to make mobile payments using Apple, Samsung and Android devices. ANZ will begin offering the Samsung Pay contactless mobile payments solution. It was the first Australian bank to provide access to the rival Apple Pay service. Westpac revealed plans to offer Samsung Pay earlier in 2017.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, SAMSUNG ELECTRONICS AUSTRALIA PTY LTD, SAMSUNG PAY, WESTPAC BANKING CORPORATION – ASX WBC, APPLE INCORPORATED, APPLE PAY, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, FACEBOOK INCORPORATED, MESSENGER CORPORATION, WECHAT, SNAPCHAT INCORPORATED, CITIGROUP INCORPORATED, AMERICAN EXPRESS COMPANY, CREDIT UNION AUSTRALIA LIMITED, BANK AUSTRALIA, DEFENCE BANK LIMITED, BANK OF SYDNEY LIMITED

Competition inquiry looks into access to finance

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 13-Jul-17

A Productivity Commission inquiry into competition in the financial services sector will be wide-ranging but focus on banks. It will examine factors such as the effect of banks’ vertically integrated business models on competition and whether consumers ultimately receive the benefits of innovation in the sector. Submissions to the inquiry must be lodged by 15 September, and the Commission’s final report is slated to be completed by mid-2018.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN BANKERS’ ASSOCIATION, BANK OF QUEENSLAND LIMITED – ASX BOQ, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, SUNCORP GROUP LIMITED – ASX SUN, ME BANK, KING AND WOOD MALLESONS

Bank staff blind eye to terror financing

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Original article by Sam Buckingham-Jones
The Australian – Page: 5 : 13-Jul-17

AUSTRAC has concluded that Australian financial services providers such as banks should be doing more to identify and report financial transactions that may involve money laundering or terrorism financing. It contends that front-line staff in particular have a key role in identifying such activity, but they may not be doing so as they have a focus on client retention. AUSTRAC noted that 60 per cent of trading and ­settling organisations failed to report any suspicious activity in the two years to March 2016.

CORPORATES
AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

Major banks increase ‘share of wallet’ but big potential remains

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 10-Jul-17

A Roy Morgan Single Source survey, which was carried out in the year to May 2017, shows that Australia’s four major banks have increased their share of customers’ dollars ("share of wallet") over the last decade, which correlates with their improvement in satisfaction over this period. The Commonwealth Bank of Australia recorded the highest growth in share of wallet among the big four banks over the last decade (7.4%), although BankSA recorded the largest growth (12.4%). Meanwhile, the top quintile (or 20%) of banking customers, based on the value of all their banking products, now accounts for nearly three quarters (74.2%) of the total value of banking products. The best performer for "share of wallet" in the top quintile is Bank SA (60.3%), followed by CBA (58.1%).

CORPORATES
ROY MORGAN RESEARCH LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BANK OF SOUTH AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

NAB acts to reduce riskiest lending

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Original article by Michael Roddan
The Australian – Page: 22 : 7-Jul-17

National Australia Bank will begin assessing the ability of interest-only mortgage borrowers to repay their loan when deciding whether to approve such applications. NAB already takes into account a customer’s loan-to-income ratio when assessing all loan applications, but it will reject applications from people with high loan-to-income ratios from 8 July. The major banks have increased the interest rates on interest-only loans in recent months.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, ING DIRECT