BANKS AND BANKING – AUSTRALIA

Satisfaction with big four banks remains high in May

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 3-Jul-17

A Roy Morgan Research Single Source survey has found that satisfaction with Australia’s four major banks rose by 0.1% to 80.2% in the six months to May 2017, which is well above the long-term average of 74.9% recorded since 2005. The Commonwealth Bank of Australia continued to have the highest level of satisfaction among the big four banks (81.1%), followed by National Australia Bank (80.4%). Meanwhile, satisfaction among home-loan customers of the big four (78.4%) continues to be below that of their other customers (80.6%), although over the last year they have narrowed the gap marginally. The survey also shows that CBA and NAB rank equal highest in terms of main financial institution satisfaction (82.6%), followed by ANZ (82.0%) and Westpac (80.7%).

CORPORATES
ROY MORGAN RESEARCH LIMITED, 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, TEACHERS MUTUAL BANK LIMITED, GREATER BANK LIMITED

Barnaba quits Macquarie for RBA board

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Original article by Julie-anne Sprague
The Australian Financial Review – Page: 24 : 30-Jun-17

Federal Treasurer Scott Morrison has announced that Mark Barnaba will replace John Akehurst as Western Australia’s representative on the board of the Reserve Bank. Barnaba will step down as the head of global resources at Macquarie Capital to take up the central bank role. Macquarie Group CEO Nicholas Moore has praised Barnaba’s contribution to the investment bank. He is also chairman of Macquarie’s WA division.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, MACQUARIE CAPITAL PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, UNIVERSITY OF WESTERN AUSTRALIA, BLACK SWAN THEATRE COMPANY LIMITED, WESFARMERS LIMITED – ASX WES, AUSTRALIAN FOOTBALL LEAGUE, HIGH COURT OF AUSTRALIA, FORTESCUE METALS GROUP LIMITED – ASX FMG, WEST COAST EAGLES FOOTBALL CLUB

CBA joins peers in raising rates

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Original article by Michael Roddan
The Australian – Page: 26 : 28-Jun-17

The Commonwealth Bank will increase the interest rates on its owner-occupier and interest-only mortgage loans by 30 basis points. This follows a similar move by its major rivals, while interest rates on principal-and-interest loans for owner-occupiers will be reduced by three basis points. Commonwealth Bank hopes the rate adjustments will prompt more customers to switch from interest-only loans to principal-and-interest loans.

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, AMP LIMITED – ASX AMP, BANK OF WESTERN AUSTRALIA LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Views diverge on Macquarie Group earnings

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 21 : 26-Jun-17

Karl Siegling of Cadence Asset Management does not think the federal and South Australian bank levies will have too great an impact on Macquarie Group’s earnings. On the issue of taxes, Morgan Stanley predicts that Macquarie will benefit from President Donald Trump’s plans to reduce US corporate taxes, while Bloomberg notes that analysts expect Macquarie to record a 2018 profit of $A2.3 billion.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, CADENCE ASSET MANAGEMENT PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, QUADRANT ENERGY PTY LTD, BROOKFIELD ASSET MANAGEMENT INCORPORATED, BLOOMBERG AUSTRALIA, CITIGROUP PTY LTD, WESFARMERS LIMITED – ASX WES, AMB HOLDINGS PTY LTD, NUIX PTY LTD, ENDEAVOUR ENERGY LIMITED

Investors wary of copycat state bank levies

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Original article by David Rogers
The Australian – Page: 31 : 23-Jun-17

Shares in Australian banks rose on 22 June, although they failed to retain early gains after the South Australian Government moved to impose a levy on banks’ state liabilities. Bank stocks are likely to be sold down in the near-term amid concern that other states could seek to balance their budgets via a levy on the sector. However, the benchmark S&P/ASX 200 has shed just 3.7 per cent during May and June 2017 – well below the five-year average loss of 4.4 per cent – and the local bourse traditionally performs well in July.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MSCI INCORPORATED, MSCI ASIA-PACIFIC EX-JAPAN INDEX, CREDIT SUISSE (AUSTRALIA) LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, CITIGROUP PTY LTD, AMAZON.COM INCORPORATED

Rate hikes starting to take a toll on borrowers

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Original article by Michael Roddan
The Australian – Page: 19 & 23 : 21-Jun-17

The proportion of Australian home loan customers that are in arrears rose by five basis points to 1.21 per cent in April 2017. Erin Kitson of Standard & Poor’s says moves by lenders to raise mortgage interest rates independently of the Reserve Bank in recent months was a major contributor to this trend. The rate rises have been prompted by a regulatory crackdown on interest-only mortgage loans. Meanwhile, Australian Securities & Investments Commission chairman Greg Medcraft has stressed the need for responsible lending.

CORPORATES
STANDARD AND POOR’S FINANCIAL SERVICES LLC, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CANSTAR PTY LTD, ST GEORGE BANK LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED, SOCIETE GENERALE SA

Moody’s trims bank ratings on rising debt

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Original article by Michael Roddan
The Australian – Page: 21 : 20-Jun-17

Moody’s has lowered its credit ratings for Australia’s four major banks, along with eight other smaller banks. Among the smaller banks to have their ratings downgraded are Bendigo & Adelaide Bank, ME Bank, Heritage Bank and Credit Union Australia. Francesco Mirenzi of Moody’s said the downgrades were prompted by concerns over high household debt and the possibility of a correction in the housing market.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, MEMBERS EQUITY BANK PTY LTD, HERITAGE BANK LIMITED – ASX HBS, CREDIT UNION AUSTRALIA LIMITED, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, 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, NEWCASTLE PERMANENT BUILDING SOCIETY LIMITED, TEACHERS MUTUAL BANK LIMITED, QT MUTUAL, TEACHERS MUTUAL VICTORIA

Nearly three million Australians are ‘trusted advisors’ for finance and investment decisions

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 14-Jun-17

A Roy Morgan Single Source survey has found that 14% of Australians aged 14+ (2.96 million people) were asked by their friends or families for advice regarding their finances and investments in the year to March 2017. This large number of ‘trusted advisors’ has significant potential to influence the financial and banking decisions of the people who ask for their advice. The survey also shows that of the sixteen largest consumer banks, Citibank has the highest proportion of customers (25.2%) that are asked by friends or family for their financial advice. Macquarie Bank has the second highest proportion of customers who are asked for their advice (24.2%), followed by Heritage Bank (23.3%) and ING Direct (21.8%).

CORPORATES
ROY MORGAN RESEARCH LIMITED, MACQUARIE BANK LIMITED – ASX MBL, HERITAGE BANK LIMITED – ASX HBS, ING DIRECT, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BANK OF SOUTH AUSTRALIA LIMITED, BENDIGO BANK, BANK OF WESTERN AUSTRALIA LIMITED

Offshore bank investors fret over housing: Elliott

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Original article by James Eyers
The Australian Financial Review – Page: 8 : 2-Jun-17

ANZ Bank CEO Shayne Elliott says UK investors with stakes in Australian banks are worried that recent regulatory changes to housing policy in Australia may lead to a market correction. Elliott, who was speaking at a G100 conference in Sydney, also said that comments by Federal Treasurer Scott Morrison that Australia’s large banks are "an oligopoly" were unhelpful, noting that there are other sectors in Australia that are just as concentrated as banking.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. DEPT OF THE TREASURY

Satisfaction with big four banks increased in April, to well above long term average

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 30-May-17

A Roy Morgan Research Single Source survey has found that satisfaction with Australia’s four major banks rose by 0.2% to 80.1% in the six months to April 2017, which is well above the long-term average of 74.9% recorded since 2005. The Commonwealth Bank of Australia continued to have the highest level of satisfaction among the big four banks (81.4%), followed by National Australia Bank (80.2%). However, NAB was highest-rating in terms of satisfaction among main financial institution customers (83.0%), replacing CBA (82.9%). Meanwhile, satisfaction levels among the big four banks’ mortgage customers has improved marginally over the last 12 months, to 78.0%, up from 77.7% in the same period in 2016. Despite the improvement, mortgage customers still have lower satisfaction than non-mortgage customers (78.0% compared to 80.5%).

CORPORATES
ROY MORGAN RESEARCH LIMITED, 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