BANKS AND BANKING – AUSTRALIA

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

CBA slip to hit management pay

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Original article by James Eyers
The Australian Financial Review – Page: 21 : 22-Oct-14

A new survey by Roy Morgan Research shows that the Commonwealth Bank’s overall customer satisfaction rating has fallen by one per cent to 81.1 per cent. Meanwhile, Westpac’s rating has risen by 1.1 per cent to 81 per cent. The Commonwealth Bank has also fallen further in Roy Morgan’s measure of customers’ satisfaction with their main financial institution, ranking behind Westpac and the ANZ Bank. The Roy Morgan customer satisfaction data is used in determining Commonwealth Bank executives’ long-term incentives

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, ROY MORGAN RESEARCH LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH FINANCIAL PLANNING LIMITED, FINANCIAL WISDOM LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, DBM AUSTRALIA LIMITED, WEALTH INSIGHTS PTY LTD

After the wipeout, Great Southern investors stand to lose homes

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Original article by Dennis Shanahan, Leo Shanahan
The Australian – Page: 21 : 15-Oct-14

The Supreme Court of Victoria will in late October 2014 rule on whether a settlement can be ratified that will mean Bendigo & Adelaide Bank can bring bankruptcy proceedings against investment loan borrowers. The about 47,000 customers had bought into the rural managed investment schemes of Great Southern between 2005 and 2008, and owe some $A398m. They will also claw back less than $A16 for every $A10,000 they lost in the collapse. Law firm MacPherson & Kelley, representing the investors, will gain close to $A20m

CORPORATES
BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, GREAT SOUTHERN LIMITED, MACPHERSON AND KELLEY LAWYERS PTY LTD, SUPREME COURT OF VICTORIA, TIMBERCORP LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

4000 ask for CBA advisory review

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Original article by Michael Bennett
The Australian – Page: 23 : 13-Oct-14

Those affected by deficient advice received from Commonwealth Financial Planning and Financial Wisdom between 2003 and 2012 have one year to ask for a formal review. Parent Commonwealth Bank of Australia (CBA) says that after three months of the offer overseen by Promontory Financial, some 4,200 clients have taken advantage of the deal. If this rate persists for the remaining nine months, fewer than 5% of all CBA financial services division customers will participate. CBA has so far made restitution to 1,100-plus people, costing a total $A52m

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMONWEALTH FINANCIAL PLANNING LIMITED, FINANCIAL WISDOM LIMITED, PROMONTORY FINANCIAL GROUP LLC, MACQUARIE BANK LIMITED – ASX MBL, HIGH COURT OF AUSTRALIA

NAB tight-lipped on sale of life insurance

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Original article by Bridget Carter
The Australian – Page: 28 : 25-Sep-14

There is speculation that National Australia Bank may sell its life insurance business. The bank acquired Aviva for $A825 million in 2009 and the bank has become one of the largest operators in the life insurance sector. CEO Andrew Thorburn has said that he will consider the sale of non-core assets. The life insurance sector is under margin pressure as sales are slowing

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AVIVA AUSTRALIA LIMITED, CLYDESDALE BANK PLC, AMP LIMITED – ASX AMP, SUNCORP GROUP LIMITED – ASX SUN, CERBERUS GLOBAL INVESTMENTS LLC, YORKSHIRE BANK PLC, DEUTSCHE BANK AG