BANKS AND BANKING – AUSTRALIA

Westpac leads big four in business customer satisfaction and advocacy

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

A Roy Morgan Research Business Single Source survey has found that the overall satisfaction level of the business customers of Australia’s four major banks fell to 65.6 per cent in January 2015. This compares with 68.6 per cent in September 2014. Westpac retained the highest satisfaction rating at 70.5 per cent, ahead of the Commonwealth Bank on 66.4 per cent. However, smaller banks continue to outperform the "big four" in terms of business customer satisfaction, increasing their satisfaction level from 69.4 per cent to 70.6 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, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, SUNCORP GROUP LIMITED – ASX SUN

CBA shares forecast to push $100 within a year

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Original article by Clancy Yeates, James Eyers
The Australian Financial Review – Page: 16 : 13-Feb-15

Commonwealth Bank of Australia (CBA) shares peaked at $A93.96 in early February 2015. While the stock has since retreated slightly, some analysts are bullish about it. Macquarie Group has lifted its 12-month share price target to $A99 in the wake of CBA’s 2014-15 interim profit result, while Credit Suisse has a target price of $A96. However, PM Capital’s Uday Cheruvu says CBA’s earnings growth outlook does not justify its high forward price-earnings multiple

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE GROUP LIMITED – ASX MQG, CREDIT SUISSE (AUSTRALIA) LIMITED, PM CAPITAL LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, GOOGLE INCORPORATED

Apple’s pick of the crop as reality bites for other heroes

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Original article by Philip Baker
The Australian Financial Review – Page: 30 : 12-Feb-15

The market capitalisation of Apple rose to $US711bn on 11 February 2015, and the IT giant may be on track to become the first company to achieve a market value of $US1trn. Apple shares have risen by more than 50,600 per cent since its IPO in 1980. Meanwhile, shares in Australian-listed Commonwealth Bank and CSL retreated on 11 February, although both remain close to record highs and are candidates to reach $A100 per share

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CSL LIMITED – ASX CSL, APPLE INCORPORATED, EXXONMOBIL CORPORATION, GOOGLE INCORPORATED, MICROSOFT CORPORATION, WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH

Political chaos hits business

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Original article by Jonathan Shapiro, James Eyers
The Australian Financial Review – Page: 1 & 14 : 12-Feb-15

The Commonwealth Bank of Australia posted a cash profit of $A4.62bn for the first half of 2014-15 on 11 February 2015. However, the group’s shares fell by 0.79 per cent to close at $A91.86. Meanwhile, CEO Ian Narev has urged the nation’s policymakers to pursue measures aimed at bolstering business confidence, arguing that the failure to deliver "coherent" policy will hinder economic growth. Shareholders will receive an interim dividend of $A1.98 per share

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RESERVE BANK OF AUSTRALIA, INVESTORS MUTUAL LIMITED, PM CAPITAL LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Bank bosses set for big pay days

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Original article by Vesna Poljak
The Australian Financial Review – Page: 15 & 20 : 10-Feb-15

The personal wealth of the CEOs of Australia’s four major banks has been boosted by the strong gains in the banks’ share prices. Commonwealth Bank CEO Ian Narev now holds some $A30m worth of shares in the bank, while the shares and options of ANZ Bank CEO Mike Smith are worth around $A61m based on the bank’s current share price. Wilson Asset Management’s Geoff Wilson says shareholders usually do not object to the high remuneration of CEOs provided investors also benefit from increased wealth

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WILSON ASSET MANAGEMENT, STANDARD AND POOR’S ASX 200 BANKS INDEX, RESERVE BANK OF AUSTRALIA

RBA helps BoQ in its new thrust

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Original article by Shaun Drummond
The Australian Financial Review – Page: 21 : 9-Feb-15

The Bank of Queensland (BoQ) will be hoping that its mortgage lending business will be boosted by the 25 basis point reduction in the cash rate on 3 February 2015. The regional bank was quick to announce that it will reduce its fixed and variable home loan rates, as well as its business lending rates. BoQ shares closed at $A13.31 on 6 February, although the consensus share price target of analysts is $A12.71. Most analysts have a "buy" or "hold" recommendation on the stock

CORPORATES
BANK OF QUEENSLAND LIMITED – ASX BOQ, RESERVE BANK OF AUSTRALIA, CLSA AUSTRALIA PTY LTD, INVESTEC BANK (AUSTRALIA) LIMITED, EZCORP INCORPORATED, SUNCORP GROUP LIMITED – ASX SUN, MACQUARIE SECURITIES PTY LTD, JP MORGAN AUSTRALIA LIMITED, BELL POTTER SECURITIES LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Banks douse hot property fears

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Original article by Michael Bennet
The Australian – Page: 19 : 5-Feb-15

Commonwealth Bank of Australia and Westpac Banking on 4 February 2015 joined Bank of Queensland, ME Bank and ING Direct in passing on in full the Reserve Bank of Australia’s interest rate cut of 25 basis points to mortgage borrowers. Meanwhile sector experts have rejected claims that the new all-time low rate of 2.25% will exacerbate a price "bubble" in the residential real estate market, noting that the Australian Prudential Regulation Authority is tightening the rules on home lending

CORPORATES
RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, BANK OF QUEENSLAND LIMITED – ASX BOQ, MEMBERS EQUITY BANK PTY LTD, ING DIRECT, AUSSIE HOME LOANS LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, SUNCORP GROUP LIMITED – ASX SUN, CITIBANK PTY LTD, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, MACQUARIE BANK LIMITED – ASX MBL, DEUTSCHE BANK AG

Why CBA is a standout with investors

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Original article by Patrick Commins
The Australian Financial Review – Page: 19 : 4-Feb-15

Morgan Stanley estimates that Commonwealth Bank of Australia (CBA) shares are now trading at 15.7 times the group’s forecast earnings for 2014-15. In contrast, the stock has traded at an average of around 12.9 per cent during the last 10 years. CBA shares have risen by 5.5 per cent in the last month, closing above $A90 on 3 February 2015. Shares in the three other major banks have also rallied in 2015, but CBA is the only one with a 30 June financial year

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MORGAN STANLEY AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BLOOMBERG LP, UBS HOLDINGS PTY LTD, MORNINGSTAR PTY LTD

Last chance to join NAB action

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Original article by Georgia Wilkins
The Australian Financial Review – Page: 14 : 27-Jan-15

Some 40,000 people so far have agreed to participate in a class action against National Australia (NAB) over exception fees. The deadline for taking part in the class action is 27 January 2015, and NAB indicated in late 2014 that it will seek to negotiate a settlement. Nine other banks are involved in a broader class action lawsuit over their fees. It is estimated that the banks could face a total payout of up to $A240m if they lose the case

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, CITIGROUP PTY LTD, FEDERAL COURT OF AUSTRALIA, FINANCIAL REDRESS PTY LTD, IMF BENTHAM LIMITED – ASX IMF, MAURICE BLACKBURN PTY LTD

CBA, CSL and Macquarie Group on track for $100 shares

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Original article by Simon Evans
The Australian Financial Review – Page: 22 : 22-Jan-15

Shares in CSL and the Commonwealth Bank are currently trading at about $A84. While they have recently retreated from 12-months peaks, both stocks could potentially rise to $A100. CSL previously undertook a share split after its stock rose to $A100 in late 2007. Arnhem Investment Management’s George Clapham suggests that in many cases a demerger rather than a share split may generate more value for shareholders. Macquarie Group’s shares are currently trading above $A60, and the stock is also a potential candidate to breach $A100

CORPORATES
CSL LIMITED – ASX CSL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE GROUP LIMITED – ASX MQG, ARNHEM INVESTMENT MANAGEMENT PTY LTD, AMCOR LIMITED – ASX AMC, ORORA LIMITED – ASX ORA, BRAMBLES LIMITED – ASX BXB, RECALL HOLDINGS LIMITED – ASX REC, IRON MOUNTAIN INCORPORATED, ELDERS LIMITED – ASX ELD, BERKSHIRE HATHAWAY INCORPORATED