BANKS AND BANKING – AUSTRALIA

BoQ lifts mortgage rates as profit jumps 11pc

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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

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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

Bank of Qld hit with second class action

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Original article by Georgia Wilkins
The Australian Financial Review – Page: 17 : 15-Mar-16

Law firm Quinn Emanuel Urquhart & Sullivan has launched legal action against Bank of Queensland, alleging that the bank "knowingly assisted" Sherwin Financial Planners in distributing-Ponzi-like products. The law firm is representing investors in the Petersen Superannuation Fund who invested in Money Market Deposit Accounts offered by Sherwin Financial Planners.

CORPORATES
BANK OF QUEENSLAND LIMITED – ASX BOQ, QUINN EMANUEL URQUHART AND SULLIVAN LP, WICKHAM SECURITIES LIMITED, SHERWIN FINANCIAL PLANNERS PTY LTD, FEDERAL COURT OF AUSTRALIA, DDH GRAHAM LIMITED, SHINE LAWYERS, BRISBANE MAGISTRATES’ COURT, PETERSEN SUPERANNUATION FUND

Besieged bank vows to improve process

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Original article by Michael Bennet
The Australian – Page: 7 : 11-Mar-16

The Commonwealth Bank has promised to thoroughly investigate recent allegations of unethical behaviour at its insurance business. Reports in the media outline allegations of doctors being under pressure to change their diagnoses of life insurance policyholders to match CommInsure’s commercial goals. Superannuation fund HESTA is reviewing its relationship with CommInsure.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMINSURE, HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED

Citi expects bank dividends to be ‘significantly lower’

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Original article by James Chessell
The Australian Financial Review – Page: 18 : 8-Mar-16

Citi Global Markets’ Sebastien Bland has warned that hedge funds and long-only fund managers in the UK and Europe are not convinced that Australian banks’ dividend payouts are sustainable given their current capital levels. He says hedge funds believe that the banks will need to reduce their dividend payout ratios, but he adds that long-only funds expect the banks to maintain dividends via measures such as dividend reinvestment plans.

CORPORATES
CITI GLOBAL MARKETS, CITIGROUP INCORPORATED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, VARIANT PERCEPTION

NAB Challenge satisfies NAB customers

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 1-Mar-16

A Roy Morgan Single Source survey has found that 82 per cent of National Australia Bank customers aged +14 who "occasionally" watch NAB Challenge games during the AFL’s pre-season are very or fairly satisfied with the bank, while the satisfaction level among those who "almost always" watch NAB Challenge matches is 88 per cent. Meanwhile, 80.2 per cent of National Australia Bank customers overall were satisfied with the bank during the six months to December 2015.

CORPORATES
ROY MORGAN RESEARCH LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN FOOTBALL LEAGUE

Bendigo still beats analyst forecasts

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Original article by Shaun Drummond
The Australian Financial Review – Page: 18 : 16-Feb-16

Bendigo & Adelaide Bank has posted a 2015-16 interim net profit of $A208.7m, which is 8.2 per cent lower than previously. However, its after-tax cash profit rose by 2.7 per cent to $A223.7m and net income rose to $A783.5m. Income from the regional bank’s Homesafe reverse mortgage-style product increased by 66 per cent to $A50.4m. The group’s shares closed at $A8.86 on 15 February 2016.

CORPORATES
BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, BELL POTTER SECURITIES LIMITED, CONTANGO ASSET MANAGEMENT LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, MACQUARIE BANK LIMITED – ASX MBL, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX

CBA holds dividend as urgency fades

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Original article by James Eyers
The Australian Financial Review – Page: 17 & 20 : 11-Feb-16

Commonwealth Bank shareholders will receive a 2015-16 interim dividend of $A1.98 per share, which equates to a payout ratio of around 70 per cent. The banking major has indicated that its full-year dividend payout will be 70-80 per cent of profits. Meanwhile, CEO Ian Narev says the bank is "very happy" with its current level of capital, and he expects the Australian Prudential Regulation Authority (APRA) to let banks increase their capital levels gradually. The Commonwealth Bank’s common equity tier 1 capital level is now 10.2 per cent, while APRA requires a minimum of eight per cent.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, NORDEA BANK AB, UBS AG

Satisfaction with big four banks up in December as home loan customers recover

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 4-Feb-16

A Roy Morgan Research Single Source survey has found that the satisfaction level of the personal customers of Australia’s four major banks rose by 0.5 per cent to 80.9 per cent in the six months to December 2015. The Commonwealth Bank continued to have the highest customer satisfaction rating of the four major banks, at 82.4 per cent, which is 0.7 per cent higher than previously. It also had the highest satisfaction rating among the home loan customers of the big four banks, at 80.6 per cent. Smaller banks had the highest level of customer satisfaction overall, at 87 per cent, while the mutual sector’s customer satisfaction rating was 91.2 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, ST GEORGE BANK LIMITED, BANK OF MELBOURNE LIMITED, BENDIGO BANK, TEACHERS MUTUAL BANK LIMITED

NAB forced to delay Clydesdale float after ratings inquiry

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Original article by James Eyers
The Australian Financial Review – Page: 13 & 16 : 3-Feb-16

Shares in National Australia Bank spin-off Clydesdale Bank were slated to list on the London Stock Exchange on 2 February 2016. However, NAB has postponed the float by 24 hours after an unnamed ratings agency sought information on Clydesdale’s deposit rating. The request could potentially result in Clydesdale’s credit rating being downgraded, although NAB has stressed that this would have no impact on the UK bank’s financial outlook or its cost of funding.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, MARTIN CURRIE INVESTMENT MANAGEMENT LIMITED, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, MORGAN STANLEY AND COMPANY INCORPORATED, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, JP MORGAN AND COMPANY INCORPORATED, CLIME ASSET MANAGEMENT PTY LTD