Greens plan to break up big four banks

June 3, 2016roymorgansocial Leave a comment

Original article by Joanna Mather, James Thomson
The Australian Financial Review – Page: 7 : 3-Jun-16

Cross-selling of financial products by Australian banks may come under scrutiny after the 2016 federal election. The Australian Greens will push for the major banks to divest their wealth divisions, which provide products and services such as superannuation, financial advice and insurance. Vertical integration in the banking sector would also be examined by a royal commission into banks if the Australian Labor Party wins the election. The Australian Bankers’ Association has urged Labor to rule out supporting the Greens’ policy on vertical integration.

CORPORATES
AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, AUSTRALIAN BANKERS’ ASSOCIATION, MORNINGSTAR PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Consumer satisfaction with big four banks improves in April

May 26, 2016roymorgansocial Leave a comment

Original article by Roy Morgan Research
Market Research Update – Page: Online : 25-May-16

A Roy Morgan Research Single Source survey has found that the overall satisfaction level of the personal customers of Australia’s four major banks rose to 80.2 per cent in the six months to April 2016, compared with 80 per cent in March. The Commonwealth Bank continued to have the highest customer satisfaction rating of the four major banks, at 81.7 per cent, which is 0.4 per cent lower than previously. Meanwhile, many smaller banks had higher customer satisfaction ratings than the "big four", with Teachers Mutual boasting a satisfaction rating of 92.7 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, TEACHERS MUTUAL BANK LIMITED, HERITAGE BANK LIMITED – ASX HBS, BANK AUSTRALIA, BEYOND BANK AUSTRALIA, ING DIRECT, BENDIGO BANK, ME BANK

Securing ‘Technology Early Adopters’ the key to success in the new banking environment

May 10, 2016roymorgansocial Leave a comment

Original article by Roy Morgan Research
Market Research Update – Page: Online : 9-May-16

A Roy Morgan Research Single Source survey, which was carried out in the year to February 2016, has found that 18.7 per cent of Australians can be classified as "Technology Early Adopters". However, Early Adopters are always the first to purchase and use new technologies and generally set the trend for the broader market to follow, making it crucial for banks to understand how they are performing among this group. The survey shows that Teachers Mutual Bank has the highest proportion of Technology Early Adopters (29.2 per cent of its customers, which is 56 per cent higher than the population average). Of the four major banks, Westpac is eight per cent above the average, followed by the ANZ and CBA (both seven per cent above the average).

CORPORATES
ROY MORGAN RESEARCH LIMITED, TEACHERS MUTUAL BANK LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BENDIGO BANK, HERITAGE BANK LIMITED – ASX HBS, BANK OF SOUTH AUSTRALIA LIMITED, ING DIRECT, CITIBANK PTY LTD

ANZ dividend cut puts pressure on rivals to follow suit

May 4, 2016roymorgansocial Leave a comment

Original article by James Eyers
The Australian Financial Review – Page: 15 & 18 : 4-May-16

The ANZ Bank reported a 2015-16 interim cash profit of $A2.8bn on 3 May 2016, which was slightly below market expectations. The banking major reduced its half-year dividend from $A0.86 per share to $A0.80, prompting speculation that National Australia Bank will do so as well when its interim results are released on 5 May. Omkar Joshi of Watermark Funds Management has welcomed ANZ’s decision to reduce its dividend payout ratio, while Katana Asset Management’s Romano Sala Tenna says the other major banks should follow its example.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WATERMARK FUNDS MANAGEMENT PTY LTD, KATANA ASSET MANAGEMENT LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, UBS HOLDINGS PTY LTD, INVESTORS MUTUAL LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION

Westpac misses the profit mark

May 3, 2016roymorgansocial Leave a comment

Original article by Michael Bennet
The Australian – Page: 19 & 23 : 3-May-16

Shares in Australia’s major banks were sold down on 2 May 2016, after Westpac posted lower-than-expected cash earnings of $A3.9bn for the first half of 2015-16. This was three per cent higher than previously, but impairment charges rose by 96 per cent to $A667m and the bank’s return on equity fell to 14.2 per cent. CEO Brian Hartzer says Westpac will cease offering financial products that do not generate a sufficient return. Shareholders will receive an unchanged interim dividend of $A0.94 per share.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ARRIUM LIMITED – ASX ARI, SLATER AND GORDON LIMITED – ASX SGH, UBS HOLDINGS PTY LTD, BELL POTTER SECURITIES LIMITED, ARNHEM INVESTMENT MANAGEMENT PTY LTD

Pressure on dividends in bank earnings

May 2, 2016roymorgansocial Leave a comment

Original article by Clancy Yeates
The Australian Financial Review – Page: 13 & 16 : 2-May-16

The earnings and dividend payouts of Australia’s four major banks will come under scrutiny in the first week of May 2016, with three set to release their half-year results. Westpac is tipped to post an interim net profit of at least $A4bn, while the ANZ Bank and National Australia Bank are expected to report half-year profits of about $A3.58bn and $A3.34bn respectively. Hugh Dive of Aurora Funds Management says NAB is the most likely to reduce its dividend payout, although Mark Nathan of Arnhem Asset Management believes that all four major banks will leave dividends unchanged in the near-term.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AURORA FUNDS MANAGEMENT LIMITED, ARNHEM INVESTMENT MANAGEMENT PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD, CLSA AUSTRALIA PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, RESERVE BANK OF AUSTRALIA, MOODY’S INVESTORS SERVICE INCORPORATED, WATERMARK FUNDS MANAGEMENT PTY LTD, DICK SMITH HOLDINGS LIMITED – ASX DSH, ARRIUM LIMITED – ASX ARI, PEABODY ENERGY CORPORATION

Bank bad debts to rise $1.2b, UBS downgrades earnings

April 15, 2016roymorgansocial Leave a comment

Original article by James Eyers
The Australian Financial Review – Page: 18 : 15-Apr-16

Australian banks’ exposure to corporate failures will affect their financial results when they are reported in early May 2016. Jonathan Mott, an analyst at UBS, wrote in a note to clients that total exposures to companies such as Arrium, the Wiggins Island Coal Export Terminal, Dick Smith, McAleese and Slater & Gordon would be around $A899 million for National Australia Bank, $A809 million for Westpac, $A688 million for the ANZ Bank and $A657 million for the Commonwealth Bank.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, UBS HOLDINGS PTY LTD, DICK SMITH HOLDINGS LIMITED – ASX DSH, SLATER AND GORDON LIMITED – ASX SGH, ARRIUM LIMITED – ASX ARI, PEABODY COALTRADE AUSTRALIA PTY LTD, McALEESE LIMITED – ASX MCS

BoQ lifts mortgage rates as profit jumps 11pc

April 8, 2016roymorgansocial Leave a comment

Original article by Richard Gluyas
The Australian – Page: 19 & 22 : 8-Apr-16

The Bank of Queensland has reported an 11 per cent rise in 2015-16 interim profit to $A171 million. CEO Jon Sutton says the bank’s variable interest rates for owner-occupier home loans will be raised by 12 basis points to 5.86 per cent. Mortgage rates on investor loans will rise by 25 basis points to 6.28 per cent. The new rates will take effect in mid-April 2016.

CORPORATES
BANK OF QUEENSLAND LIMITED – ASX BOQ, RESERVE BANK OF AUSTRALIA, MACQUARIE EQUITIES LIMITED, VIRGIN MONEY (AUSTRALIA) PTY LTD

Consumer satisfaction with big four banks dips again in February

March 23, 2016roymorgansocial Leave a comment

Original article by Roy Morgan Research
Market Research Update – Page: Online : 22-Mar-16

A Roy Morgan Research Single Source survey has found that the overall satisfaction level of the personal customers of Australia’s four major banks fell to 80.5 per cent in the six months to February 2016, compared with 80.6 per cent in January. The Commonwealth Bank continued to have the highest customer satisfaction rating of the four major banks, at 82 per cent. Meanwhile, many smaller banks had higher customer satisfaction ratings than the "big four", with Beyond Bank Australia boasting a satisfaction rating of 95.4 per cent. Smaller lenders also had higher satisfaction ratings among home loan customers, with ING Direct topping the list with a satisfaction rating of 94.6 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BEYOND BANK AUSTRALIA, ING DIRECT, TEACHERS MUTUAL BANK LIMITED, HERITAGE BANK LIMITED – ASX HBS, BANK OF QUEENSLAND LIMITED – ASX BOQ, BENDIGO BANK, BANK OF WESTERN AUSTRALIA LIMITED, ME BANK

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