BANKS AND BANKING – AUSTRALIA

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

Satisfaction with banks near record level in August but high value customers not so happy

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 24-Sep-15

A Roy Morgan Research Single Source survey shows that the satisfaction level of the personal customers of Australian banks was steady at 82.8 per cent in the six months to August 2015. The Commonwealth Bank had the highest customer satisfaction rating of the four major banks, at 82.6 per cent. However, National Australia Bank had the four major banks’ highest level of satisfaction among customers in the high-value quintile, at 77.5 per cent. The Commonwealth Bank had the highest satisfaction rating among customers in the lowest quintile (87.8 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

Branch numbers are on the wane as digital banking gains popularity

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Original article by Clancy Yeates
The Australian Financial Review – Page: 24 : 24-Sep-15

Alan Shields, the MD of advisory firm RFI, expects the trend for banks to reduce branch numbers to continue. Figures from the Australian Prudential Regulation Authority show that Westpac cut its branches by 48 to 1,237 in 2014-15. The ANZ Bank reduced branch numbers by 19 to 751, while National Australia Bank closed two branches. The Commonwealth Bank opened one branch in 2014-15.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CREDIT SUISSE (AUSTRALIA) LIMITED, MORNINGSTAR PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RETAIL FINANCE INTELLIGENCE PTY LTD

Big four banks increase personal customers by over a million since 2011

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 17-Sep-15

A Roy Morgan Single Source survey has found that Australia’s four major banks gained an additional 1,042,000 personal customers aged +14 between July 2011 and July 2015. This is an increase of 5.5% and is above the population growth over the same period (5.2%), indicating that they are retaining their dominant market position despite strong competition. National Australia Bank had the highest growth in personal customers over the period, at 15.7 per cent, ahead of the Commonwealth Bank (including BankWest) with 5.2 per cent growth.

CORPORATES
ROY MORGAN RESEARCH LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, BANK OF WESTERN AUSTRALIA LIMITED, ST GEORGE BANK LIMITED

ACCC nods at a Macquarie-Esanda tilt

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 16 : 18-Sep-15

The Australian Competition & Consumer Commission has ruled that there would be little impact on competition if Macquarie Group acquires the Esanda dealer finance business from ANZ Bank. Macquarie is regarded as the frontrunner to buy the Esanda business, which is tipped to change hands for up to $A1.5bn. Analysts say Macquarie could opt for a capital raising to help finance the deal if its bid succeeds.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, ESANDA FINANCE CORPORATION LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, SHAW AND PARTNERS LIMITED, CLSA AUSTRALIA PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, TOYOTA FINANCE AUSTRALIA LIMITED, NISSAN FINANCE

NAB intensifies pitch for Clydesdale float

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Original article by Clancy Yeates
The Australian Financial Review – Page: 19 & 24 : 16-Sep-15

National Australia Bank (NAB) CFO Craig Drummond has not ruled out a trade sale for the UK’s Clydesdale Bank if a suitable offer is made, but he says a demerger and partial IPO remains the preferred option. NAB shareholders will be offered up to 80 per cent of shares in Clydesdale if the previously outlined plan proceeds. Clydesdale CEO David Duffy is confident that so-called "challenger banks" such as Clydesdale can compete with the major UK banks, particularly in sectors such as retail banking and retail and lending to small business.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, BANCO SABADELL, CREDIT SUISSE (AUSTRALIA) LIMITED, CBA EQUITIES LIMITED

Macquarie poised for record $2b annual profit

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 13 & 17 : 15-Sep-15

Australian-listed Macquarie Group has advised that its 2015-16 interim profit will be 40 per cent higher than the $A678m result for the previous corresponding period. This suggests that Macquarie’s profit for the half-year to 30 September 2015 will be around $A949m. Macquarie has indicated that its profit for the second half will be similar to the first half, which means its full-year result could be around $A1.9bn. Meanwhile, the group has made a binding offer to acquire the Esanda dealer finance business from the ANZ Bank.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ESANDA FINANCE CORPORATION LIMITED, MACQUARIE ASSET MANAGEMENT, MACQUARIE SECURITIES PTY LTD, SHAW AND PARTNERS LIMITED, CLSA CAPITAL PARTNERS, WHITE FUNDS MANAGEMENT PTY LTD, TRANSGRID, LONDON CITY AIRPORT

Spanish ‘interest’ won’t derail NAB Clydesdale float

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Original article by James Chessell
The Australian Financial Review – Page: 16 : 11-Sep-15

There is speculation that Spain-based Sabadell may be a potential buyer of the UK’s Clydesdale Bank, which is being sold by National Australia Bank (NAB). The Spanish bank has previously paid Stg1.7bn for TSB Bank. NAB plans to offload Clydesdale via an IPO and the sale of shares directly to its own stockholders, and NAB sources say this has not changed. CEO Andrew Thorburn indicated in August 2015 that investors would be updated on the sale process in October.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, YORKSHIRE BANK PLC, BANCO SABADELL, TSB BANK LIMITED, LLOYDS BANKING GROUP PLC, THE GOLDMAN SACHS GROUP INCORPORATED

Hartzer to slim down a higher-tech Westpac

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Original article by Clancy Yeates, James Eyers
The Australian Financial Review – Page: 1 & 6 : 8-Sep-15

Westpac CEO Brian Hartzer has ruled out large-scale branch closures, although he has conceded that some branches are likely to be closed as the shift toward online banking gains momentum. Hartzer has also flagged plans to increase the banking major’s investment in technology, as part of a strategy to boost overall investment by 20 per cent. Westpac will also seek to ensure that its return on equity remains above 15 per cent.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, UBS HOLDINGS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, BANK OF MELBOURNE LIMITED, BANK OF SOUTH AUSTRALIA LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB