BANKS AND BANKING – AUSTRALIA

Westpac shares climb after capital raising, rate increase

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Original article by Clancy Yeates
The Australian Financial Review – Page: 1 & 10 : 20-Oct-15

Shares in Westpac closed three per cent higher at $A31.34 on 19 October 2015, after being in a trading halt for almost a week. Clime Investment Management’s John Abernethy suggests that short selling in the wake of a $A3.5bn capital raising may have been the main driver of Westpac’s share price rise, rather than its move to lift mortgage interest rates by 0.2 per cent. Morningstar’s David Ellis says rival banks are likely to increase their own home loan rates.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, CLIME INVESTMENT MANAGEMENT LIMITED – ASX CIW, MORNINGSTAR PTY LTD, WATERMARK FUNDS MANAGEMENT PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, ALPHINITY INVESTMENT MANAGEMENT PTY LTD

Small lenders likely to follow majors up

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Original article by Shaun Drummond
The Australian Financial Review – Page: 17 : 16-Oct-15

Australia’s other three major banks have not yet increased their home loan interest rates in response to Westpac’s move. Bendigo & Adelaide Bank CEO Mike Hirst has indicated that the regional bank may increase its mortgage rates if the other "big three" do so, while Suncorp Bank, CUA and Firstmac may do so as well. Suncorp reduced its interest rates on some home loans on the same day that Westpac announced its rate increase.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, SUNCORP BANK, SUNCORP GROUP LIMITED – ASX SUN, CREDIT UNION AUSTRALIA LIMITED, FIRSTMAC LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Westpac to stick with dividend lift

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Original article by James Eyers
The Australian Financial Review – Page: 27 & 30 : 15-Oct-15

Westpac’s unaudited preliminary financial accounts for 2014-15 show that it has posted a full-year cash profit of $A7.82bn, which is three per cent higher than previously. Investors will receive a fully franked final dividend of $A0.94 per share, compared with $A0.92 in 2013-14, while Westpac also intends to pay a higher dividend in 2015-16. Westpac shares have been placed in a trading halt until 19 October 2015 due to the group’s $A3.5bn capital raising.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, MORGAN STANLEY AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, MOODY’S INVESTORS SERVICE INCORPORATED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Internet banking growth and satisfaction outstrips other channels

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 12-Oct-15

A Roy Morgan Single Source survey has found that 62.2 per cent of Australians aged 14+ used the internet (via website or mobile) to deal with their bank in an average four-week period during the six months to August 2015. This compares with 58.6 per cent in the six months to August 2013. Meanwhile, the proportion of bank customers using branches in an average four-week period has fallen from 35.5 per cent to 32.3 per cent over the last two years. The only area of growth has been mobile banking, which has increased from 26.2 per cent of Australians to 33.6 per cent. The satisfaction level of internet banking is now 90.2 per cent, compared with 88.4 per cent for branches.

CORPORATES
ROY MORGAN RESEARCH LIMITED, SUNCORP BANK, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

ANZ signals push into NSW home lending

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Original article by Jonathan Shapiro, James Eyers
The Australian Financial Review – Page: 1 & 11 : 12-Oct-15

Increasing its share of the home loan market in New South Wales will be a priority for the ANZ Bank under new CEO Shayne Elliott, who will succeed Mike Smith in early 2016. Elliott also says the growing shift to the use of mobile devices for banking represents both a challenge and an opportunity for the banking sector in terms of engaging with customers. Meanwhile, ANZ chairman David Gonski says the group will review its Asian strategy under Elliott.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, PT PANIN BANK, AMBANK BERHAD, BANK OF TIANJIN COMPANY LIMITED, SHANGHAI RURAL COMMERCIAL BANK, MACQUARIE GROUP LIMITED – ASX MQG, ESANDA FINANCE CORPORATION LIMITED

Big banks grab third of $30b in super fees

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Original article by Jacob Greber
The Australian Financial Review – Page: 4 : 12-Oct-15

Research undertaken by Rainmaker on behalf of Industry Super Australia shows that Australia’s four major banks received about 33 per cent of the $A30bn paid in superannuation fees in 2014-15. Retail super funds and not-for-profit super funds accounted for about 50 per cent and 25 per cent of fees respectively. ISA CEO David Whiteley has expressed concern about the level of transparency in the super industry.

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, RAINMAKER INFORMATION SERVICES PTY LTD, AMP LIMITED – ASX AMP, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Macquarie bulks up with Esanda

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Original article by Joyce Moullakis, Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 1 & 8 : 9-Oct-15

Macquarie Group will become one of Australia’s three largest vehicle financiers after paying $A8.2bn for the Esanda Dealer Finance business. The sale of Esanda will boost the ANZ Bank’s common equity tier one capital ratio. Macquarie will partially finance the acquisition via a capital raising, with plans to tap institutional investors for $A400m via a share placement. Macquarie shares traded at $A77.84 on 8 October 2015, prior to a trading halt.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ESANDA FINANCE CORPORATION LIMITED, AWAS AVIATION CAPITAL LIMITED, CROWN CASTLE AUSTRALIA PTY LTD, APACHE ENERGY LIMITED, THAMES WATER UTILITIES LIMITED, MOTO, JP MORGAN AUSTRALIA LIMITED, MACQUARIE CAPITAL PTY LTD, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, CADENCE CAPITAL LIMITED – ASX CDT, CREDIT SUISSE (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, HNA GROUP, NOMURA AUSTRALIA LIMITED, PEPPER GROUP LIMITED – ASX PEP

BoQ chief glimpses a sunnier state for bank

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Original article by Shaun Drummond
The Australian Financial Review – Page: 13 & 16 : 9-Oct-15

Bank of Queensland has posted 2014-15 cash earnings of $A$357m, which is 19 per cent higher than previously. Revenue was 17 per cent higher at $A1.08bn, while its home loan book increase by nine per cent to $A25.6bn. The value of all loans rose by seven per cent to $A40.9bn in total. CEO Jon Sutton is upbeat about the regional bank’s earnings outlook, noting that it should benefit from factors such as new capital requirements for its larger peers.

CORPORATES
BANK OF QUEENSLAND LIMITED – ASX BOQ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CONTANGO ASSET MANAGEMENT LIMITED, BELL POTTER SECURITIES LIMITED, WATERMARK FUNDS MANAGEMENT PTY LTD, VIRGIN MONEY (AUSTRALIA) PTY LTD

Banks shares set to rise as investors focus on dividends

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 28 : 8-Oct-15

Australia’s S&P/ASX 200 Banks Index has shed 20 per cent since April 2015, and Macquarie says the downturn in bank share prices has created a buying opportunity for investors. Macquarie expects the forthcoming dividend payouts by National Australia Bank, Westpac and the ANZ Bank will drive investor activity in the banking sector, which in turn should boost the share prices of bank stocks.

CORPORATES
STANDARD AND POOR’S ASX 200 BANKS INDEX, MACQUARIE GROUP LIMITED – ASX MQG, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BANK OF QUEENSLAND LIMITED – ASX BOQ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Inner-city suburbs risk mortgage default, says NAB

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Original article by Clancy Yeates
The Australian Financial Review – Page: 1 & 6 : 29-Sep-15

National Australia Bank has identified about 80 postcodes across Australia where it will restrict loan-to-valuation ratios due to concerns about the potential for home loan borrowers to default. Home buyers in some 40 postcodes are regarded as being particularly at risk of default, and home loan borrowers in these postcodes will require a minimum deposit of 30 per cent. While many of the postcodes are in mining areas, the list also includes 34 in Sydney and five in Melbourne, and the CBDs of all five major capital cities.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, HOMELOANEXPERTS.COM.AU, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY