BANKS AND BANKING – AUSTRALIA

CBA shuffles executive ranks

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Original article by Michael Bennet
The Australian – Page: 23 : 2-Dec-14

The successor to Grahame Petersen as group executive for business and private banking at Commonwealth Bank of Australia (CBA) has been announced. Adam Bennett joined CBA in 2004 from consultancy AT Kearney to work in the IT division, and served as CIO during the core banking system overhaul that experts say has allowed CBA to become the leader in the use of banking technology solutions. The business banking unit is the second largest at CBA after retail banking

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AT KEARNEY AUSTRALIA PTY LTD, DEUTSCHE BANK AG, MACQUARIE GROUP LIMITED – ASX MQG

CBA backs university’s quantum leap

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Original article by Paul Smith
The Australian Financial Review – Page: 19 : 2-Dec-14

Research into the development of quantum computers at the University of New South Wales has been given a boost via a $A5m investment by the Commonwealth Bank. Michelle Simmons, the head of the university’s Centre for Quantum Computation & Communication Technology, says the investment will help Australia to maintain its status as a world leader in the technology. She is also hoping for financial support from the Federal Government

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, UNIVERSITY OF NEW SOUTH WALES. CENTRE FOR QUANTUM COMPUTATION AND COMMUNICATION TECHNOLOGY

Medibank IPO fee pool not as lucrative for key bankers

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 13 & 18 : 25-Nov-14

The three banks that were lead managers for the $A5.7bn IPO of Medibank Private will be collectively paid $A19.7m in fees. They will each receive a base management fee of $A5m, as well as incentive fees. The total fees associated with the IPO tops $A36m when the fees paid to law firms and other advisers are taken into account. IPOs of government-owned businesses are typically less lucrative for bankers, but they tend to be attracted to such floats for the prestige and the potential for similar work in the future

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, MACQUARIE GROUP LIMITED – ASX MQG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, DEUTSCHE BANK AG, AURIZON HOLDINGS LIMITED – ASX AZJ, TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, LAZARD PTY LTD, REUNION CAPITAL PARTNERS PTY LTD, HERBERT SMITH FREEHILLS PTY LTD, KING AND WOOD MALLESONS, ERNST AND YOUNG, DELOITTE TOUCHE TOHMATSU LIMITED, BELL POTTER SECURITIES LIMITED, BELL FINANCIAL GROUP LIMITED – ASX BFG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MORGANS FINANCIAL LIMITED, UBS WEALTH MANAGEMENT AUSTRALIA LIMITED, ARNHEM INVESTMENT MANAGEMENT PTY LTD

Westpac scores highest satisfaction of the big four banks for personal and business customers

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 19-Nov-14

A Roy Morgan Single Source survey has found that the satisfaction level of the personal customers of Australian banks rose by 0.2 per cent to a record 82.6 per cent in October 2014. Westpac had the highest personal customer satisfaction rating of the four major banks in the six months to October, at 81.5 per cent, ahead of the Commonwealth Bank (81.2 per cent). Westpac also had the highest satisfaction rating among business customers (72.3 per cent), followed by National Australia Bank (69 per cent)

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

NAB hires Deloitte ahead of stepping up life division sale

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 21 : 20-Nov-14

Financial market analysts estimate that the life insurance business of National Australia Bank (NAB) is worth around $A1.4bn. Deloitte has been hired to advise the banking major on options for the business, which could include selling all or part of it. Ross Curran of the Commonwealth Bank believes that NAB’s life business can be sold if it is offered at an appropriate price. The life business is part of NAB’s MLC division

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, DELOITTE TOUCHE TOHMATSU LIMITED, MLC LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, METLIFE INSURANCE LIMITED, JP MORGAN AUSTRALIA LIMITED, AXA ASIA PACIFIC HOLDINGS LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, DAI-ICHI LIFE INSURANCE COMPANY LIMITED, NIPPON LIFE INSURANCE COMPANY LIMITED, ZURICH INSURANCE COMPANY, AMERICAN INTERNATIONAL GROUP INCORPORATED, CLSA AUSTRALIA PTY LTD

NAB execs poorer by $44m

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Original article by Richard Gluyas
The Australian – Page: 22 : 18-Nov-14

The 2013-14 annual report of National Australia Bank (NAB) shows that senior managers forfeited some $A44m worth of stock meant as incentive awards. The remuneration of departed CEO Cameron Clyne in his final year at the helm dropped from $A7.8m to $A6m, even when taking into account a "golden parachute" payment of $A1.7m. The lapsed equity in his case amounted to $A19.1m. The details follow the recent news that NAB’s cash profit had fallen by a tenth due to major provisioning charges

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD

Councils target ANZ on sale of toxic debt

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Original article by Leo Shanahan
The Australian – Page: 31 : 14-Nov-14

Australian local government bodies led by Coffs Harbour City Council are launching legal action in the Federal Court against ANZ Bank. They allege misleading and deceptive conduct, breach of contract, breach of fiduciary duties and breach of the banking code of practice. ANZ had sold the claimants risky collateralised debt obligations between 2006 and 2008, without disclosing its own stake in the instruments. A co-respondent to the suit is credit ratings agency Fitch Ratings, which had given "AAA" status to the Credit Sail II product

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FITCH RATINGS LIMITED, COFFS HARBOUR CITY COUNCIL, FEDERAL COURT OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, LEHMAN BROTHERS INCORPORATED, GLOUCESTER SHIRE COUNCIL

Banking’s first lady

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Original article by Anne Hyland
The Australian Financial Review – Page: 40 & 41 : 14-Nov-14

The market capitalisation of Westpac has risen twofold to $A103bn under the leadership of outgoing CEO Gail Kelly, who took on the role in 2008. Kelly says the corporate culture that was developed at Westpac during her tenure is her greatest achievement in seven years at the helm, and she is particularly pleased that Westpac is now the leading Australian bank in terms of business and consumer satisfaction. Former Commonwealth Bank CEO Ralph Norris and Foreign Minister Julie Bishop are among those to have praised Kelly

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ST GEORGE BANK LIMITED, FORBES INCORPORATED, THE GOLDMAN SACHS GROUP INCORPORATED, NEDBANK, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COLONIAL GROUP, STATE BANK OF NEW SOUTH WALES LIMITED, ROYAL BANK OF SCOTLAND GROUP PLC, APPLE INCORPORATED, GOOGLE INCORPORATED

NAB tells rivals it is ready for a fight

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Original article by James Eyers, Joyce Moullakis
The Australian Financial Review – Page: 13 & 16 : 31-Oct-14

National Australia Bank (NAB) posted a 4.5 per cent decline in net interest income from business lending in the year to 30 September 2014. CEO Andrew Thorburn says the banking major will pursue a range of measures to ensure that it remains Australia’s leading business bank, including hiring more business bankers. He has ruled out relaxing NAB’s lending standards in the sector. NAB has reported a 2013-14 profit of $A5.18bn

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACQUARIE GROUP LIMITED – ASX MQG, ARNHEM INVESTMENT MANAGEMENT PTY LTD, RESERVE BANK OF AUSTRALIA, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED

NAB to step up UK asset sales

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Original article by Clancy Yeates, James Eyers
The Australian Financial Review – Page: 30 : 30-Oct-14

Some analysts believe that National Australia Bank (NAB) will divest the UK’s Clydesdale Bank via an IPO within six months. NAB is likely to reveal its sale options for the Clydesdale and Yorkshire Bank businesses when its 2013-14 financial results are released on 30 October 2014. NAB is tipped to post a full-year profit within the range of $A5.1bn to $A5.2bn, down from $A5.94bn previously

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, YORKSHIRE BANK PLC, GREAT WESTERN BANK, MLC LIMITED, GREAT BRITAIN. FINANCIAL CONDUCT AUTHORITY