BANKS AND BANKING – AUSTRALIA

ACCC calls on banks in merger probe

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Original article by Joyce Moullakis
The Australian – Page: 13 & 16 : 4-Jan-23

The Australian Competition & Consumer Commission is currently assessing the ANZ Bank’s proposed deal to acquire Suncorp Group’s banking arm. Sources have indicated that the ACCC has requested information and data from the nation’s major and regional banks as part of the process, using its compulsory powers under the Competition and Consumer Act 2010. This information is said to include bank returns, net interest margins, funding costs and market share. The ACCC is seeking submissions on the ANZ deal by 18 January, and it aims to make a final decision on the transaction in June.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ,SUNCORP BANK,SUNCORP GROUP LIMITED – ASX SUN,AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Banks demand buy now, pay later details for home loans

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Original article by Joyce Moullakis
The Australian – Page: 13 & 17 : 23-Dec-22

ING and Macquarie Bank have told mortgage brokers that they are now including buy now, pay later debts when assessing a person’s ability to repay a mortgage or other type of loan. ING has also advised brokers that outstanding Higher Education Contribution Scheme (HECS) or Higher Education Loan Program (HELP) debt amounts need to be included in the loan serviceability assessment, while it is to increase the minimum required deposit from five per cent to 10 per cent to line up with its align with its lenders’ mortgage insurer’s policy on "high-risk postcodes".

CORPORATES
ING AUSTRALIA HOLDINGS LIMITED, MACQUARIE BANK LIMITED – ASX MBL

NAB is the most trusted agribusiness bank among farmers, followed by Rural Bank and Rabobank

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Original article by Roy Morgan
Market Research Update – Page: Online : 14-Nov-22

A special Roy Morgan Agribusiness Brand Trust Survey of Australian farmers measured trust and distrust in the nation’s agricultural sector. National Australia Bank has emerged as the most trusted bank in the agribusiness sector in 2022, with farmers commending NAB for maintaining good relationships with farmers, for their reliability, good service and high standards. Farmers also trusted Rural Bank and Rabobank for their commitment to customer relationships, as well as their good service and reliability. Trust towards individual agribusiness banks varied by farmer demographics, with Rural Bank and Rabobank receiving high trust scores among Victorian farmers, while ANZ was most trusted in South Australia. Dairy farmers were more trusting of agribusiness banks overall, with all six banks measured in the survey recording higher Net Trust Scores among this group of farmers. Rural Bank and Rabobank were more trusted among wool farmers. The results of the Roy Morgan Farmer Agribusiness Brand Trust Survey Report are based on detailed interviews with 1,230 Australian farmers conducted during June and July 2022.

CORPORATES
ROY MORGAN LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RURAL BANK LIMITED, RABOBANK AUSTRALIA LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

APRA warns on bank cyber risks

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Original article by Cliona O’Dowd
The Australian – Page: 13 & 19 : 12-Oct-22

Australian Prudential Regulation Authority chairman Wayne Byres has told a parliamentary committee hearing that a cyber attack on one of the nation’s financial institutions is inevitable. Byres said the sector has invested significantly in protecting their systems from hackers, but it is only a matter of time before a hacker is successful. He added that it is equally important to invest in response capabilities so any breaches are detected quickly and action is taken to limit the damage. S&P Global Ratings recently warned that Australia’s regional banks in particular are vulnerable to data breaches.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, S&P GLOBAL RATINGS

Crisis as bank branches closed

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Original article by Joyce Moullakis
The Australian – Page: 15 : 21-Sep-22

The Finance Sector Union has urged the federal government to hold an inquiry into the impact of bank branch closures on customers and communities. The FSU’s national secretary Julia Angrisano says the union has been particularly concerned about the closure of branches in regional areas. BankWest has advised that it will close 14 branches in NSW, Queensland, Victoria and South Australia, while 29 branches in regional areas in Western Australia will have reduced trading hours. Angrisano has accused BankWest’s parent the Commonwealth Bank of putting "profits before people".

CORPORATES
FINANCE SECTOR UNION, BANKWEST, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Westpac closures take branch losses to 225 since last January

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Original article by Ayesha de Kretser
The Australian Financial Review – Page: Online : 16-Sep-22

Westpac’s latest round of branch closures has been criticised by the Finance Sector Union, with national secretary Julia Angrisano also describing the bank as "mean and stingy" with regard to pay negotiations. Westpac will close another 24 branches across Australia, with the loss of 103 jobs; it previously closed 24 branches in both July and August, and a total of 225 branches have now been closed since the start of 2021. The Commonwealth Bank in turn will close three branches in NSW and South Australia.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, FINANCE SECTOR UNION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Suncorp puts bank into play

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Original article by Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 1 & 16 : 27-Jun-22

Suncorp Group may abandon its ‘bancassurance’ model and pursue a sale or demerger of its banking division. Suncorp has engaged the services of investment bank Barrenjoey Capital Partners to consider options for its banking arm, which would allow the listed group to focus on its insurance division. Analysts have suggested that the recent downturn in Australian bank stocks could make selling Suncorp Bank more attractive than listing it on the sharemarket. Suncorp’s own share have fallen by one per cent over the last year, while the S&P/ASX 200 has shed 10 per cent.

CORPORATES
SUNCORP GROUP LIMITED – ASX SUN, SUNCORP BANK, BARRENJOEY CAPITAL PARTNERS PTY LTD, STANDARD AND POOR’S ASX 200 INDEX

‘Weaker housing’: Morgan Stanley slashes banks’ valuations

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Original article by Emma Rapaport
The Australian Financial Review – Page: 26 : 22-Jun-22

Morgan Stanley analysts have warned that a recession in Australia and New Zealand is becoming more likely. Factors such as the worsening economic outlook and rising interest rates have prompted Morgan Stanley to downgrade its valuations for Australia’s four major banks, given their exposure to the housing market. The share prices of the ‘big four’ banks have fallen sharply since the Reserve Bank increased the cash rate by a higher-than-expected 50 basis points in June, while another rate rise is likely in July.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA

ANZ remains prone to ‘liar loans’: UBS survey

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Original article by Ayesha de Kretser
The Australian Financial Review – Page: 17 : 27-Apr-22

Some 37 per cent of Australians who sought a mortgage loan in the second half of 2021 had lied on their application form, according to research by UBS. This compares with 41 per cent in 2020. The survey also shows that 55 per cent of ANZ Bank customers had included factual misstatements in their application form; this compares with 40 per cent of Westpac customers, 30 per cent of Commonwealth Bank customers and 19 per cent of National Australia Bank customers. John Storey of UBS says it is particularly concerning that 81 per cent of the ANZ customers who submitted applications for so-called ‘liar loans’ claim that they were advised to do so by their banker.

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

NAB backflips on outrageous credit card cash ban

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Original article by Charlotte Grieve
Brisbane Times – Page: Online : 1-Mar-22

It was recently revealed that the National Australia Bank was getting staff to encourage customers to use options other than cash payments in NAB branches when making credit card payments. It denied that the policy amounted to a ban on cash payments in branches, but internal training documents suggest otherwise. However, following an angry reaction from NAB customers and staff, the NAB has done a backflip on its credit card cash ban, which had been described as "outrageous" by the Finance Sector Union.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, FINANCE SECTOR UNION