BANKS AND BANKING – AUSTRALIA

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

Smaller banks continue to lead in customer satisfaction

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 4-Sep-15

Roy Morgan’s Single Source survey has revealed that the satisfaction level of the big four banks’ personal banking customers in the six months to July 2015 was 81.3 per cent, which was up 0.8 percentage points from July 2014 (80.5 per cent). Despite this improvement, the banks other than the big four still have a clear lead with 86.0 per cent satisfaction in July 2015, which was up 0.5 percentage points from July 2014 (85.5 per cent). Among the big four banks, CBA narrowly regained top position from the NAB for overall satisfaction with 82.3 per cent (NAB 82.2 per cent). Among smaller banks, Teachers Mutual Bank remained the best performing bank overall with 95.1 per cent of its customers satisfied. It is worth noting that Bank of Melbourne (90.3 per cent satisfaction) and St George (84.5 per cent) were both clearly ahead of Westpac (80.1 per cent).

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

Investor rate rises prompt owner-occupiers to switch

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Original article by Clancy Yeates
The Australian Financial Review – Page: 3 : 3-Sep-15

A growing number of home loan customers are alerting banks they have changed their status from investor to owner-occupier. While they had no incentive to do so before, banks are now charging investors higher interest rates for the first time since the 1990s. The industry says the trend may involve thousands of customers, complicating the compilation of official statistics.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, YELLOW BRICK ROAD HOLDINGS LIMITED – ASX YBR, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, UBS HOLDINGS PTY LTD

NAB cold on Adani’s Carmichael

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Original article by Amanda Saunders, Ben Potter
The Australian Financial Review – Page: 8 : 3-Sep-15

National Australia Bank is reported to have ruled out investing in Adani’s $A16 billion Carmichael coal project in Queensland. Adani responded by saying it had never approached NAB for funding. Meanwhile, announcing a 15.4 per cent return on its portfolio, Future Fund chairman Peter Costello said the fund would continue to invest in companies where there was an investment case, whether they were mines or banks supporting mines.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ADANI MINING PTY LTD, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MINERALS COUNCIL OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, GREENPEACE, BANK OF TOKYO-MITSUBISHI LIMITED, WHITEHAVEN COAL LIMITED – ASX WHC, NEWCASTLE CITY COUNCIL

Council tells big four banks don’t bring coal to Newcastle

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Original article by Amanda Saunders, Ben Potter
The Australian Financial Review – Page: 1 : 27-Aug-15

The Minerals Council of Australia has called the City of Newcastle’s decision to dump its holdings in banks that finance fossil fuel projects a "pointless sham" and urged it to support the local economy. The New South Wales city is home to the world’s biggest coal port. Mining’s direct spend in Newcastle is about $A1.8 billion a year, rising to $A5.9 billion when the greater Hunter region is taken into account. The divestment decision was supported by Australian Labor Party and Australian Greens councillors.

CORPORATES
NEWCASTLE CITY COUNCIL, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, NEW SOUTH WALES MINERALS COUNCIL, AUSTRALIAN BANKERS’ ASSOCIATION, RESPONSIBLE INVESTMENT ASSOCIATION AUSTRALASIA, ME BANK

Aussies using only their Mobile or Tablet to bank triples in 3 years

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

A Roy Morgan Single Source survey has found that an estimated 1.1 million (5.8 per cent of) Australians use only their mobile phone or tablet to conduct banking activities in an average four week period. In three years, the number of Australians doing "mobile-only banking" has tripled. This means they do not use any other banking channel, such as website, branches, adviser/banker or the telephone, to deal with their bank. By June 2015, 33 per cent of Australians conducted internet banking using a mobile phone or tablet (app) in an average four week period. This has resulted in a group of people that only deal with their banks via a mobile or tablet. As assumed, younger generations take up digital channels at higher rates than older ones, with close to one out of ten people under 34 years old doing "mobile-only banking".

CORPORATES
ROY MORGAN RESEARCH LIMITED

Big four banks mauled in bear market as capital rules bite

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Original article by Clancy Yeates
The Australian Financial Review – Page: 14 : 24-Aug-15

Shares in Australia’s major banks continue to be under pressure. Since the beginning of 2015, they have lost more than $A85 billion in their combined market value, or more than 20 per cent. Shares in the ANZ Banking Group declined 23.9 per cent from their April peak of $A37.25. Investors worry about the bank’s exposure to Asia and to Australian mining companies.

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, CADENCE CAPITAL LIMITED – ASX CDT, BELL POTTER SECURITIES LIMITED, ALPHINITY INVESTMENT MANAGEMENT PTY LTD

Westpac takes tougher line on interest-only mortgages

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Original article by Clancy Yeates
The Australian Financial Review – Page: 16 : 17-Aug-15

Westpac will apply new standards to interest-only mortgages. The bank told brokers that borrowers will now have to show that they will be able to service an interest-only loan after the interest-only period had ended. The bank will also reduce the maximum interest-only period for owner-occupier home loans from 15 years to 10 years.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, STANDARD AND POOR’S ASX 200 INDEX

CBA to cut lending for new homes

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Original article by Michael Bleby
The Australian Financial Review – Page: 10&8 : 10-Aug-15

The Commonwealth Bank of Australia plans to introduce restrictions on lending to first-home buyers and investors for property purchases in greenfield housing developments. The bank told brokers that the approval of finance for buyers of land lots would be delayed until all preliminary work on the project has been completed. Developers worry that the plan, if implemented, would have a negative impact on the housing sector.

CORPORATES
URBAN DEVELOPMENT INSTITUTE OF AUSTRALIA (VICTORIA), COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, FRASERS AUSTRALAND PTY LTD, HOUSING INDUSTRY ASSOCIATION LIMITED