BANKS AND BANKING – AUSTRALIA

Business satisfaction with Big Four banks highest in four years, Westpac the clear leader

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

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 was 66.7 per cent in July 2014, which is 2.4 per cent higher than 12 months earlier. Westpac has the highest satisfaction rating at 71.4 per cent, ahead of National Australia Bank’s 67.1 per cent. However, smaller banks continue to outperform the "big four" in terms of business customer satisfaction, with Bendigo Bank recording a satisfaction rating of 82 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

It’s not a bubble, says CBA

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Original article by Jonathan Shapiro, James Eyers
The Australian Financial Review – Page: 1 & 10 : 14-Aug-14

The Commonwealth Bank of Australia (CBA) has posted a record cash profit of $A8.68bn for the 2013-14 financial year. The banking major wrote about $A12bn worth of new home loans during the year, and its mortgage book is now worth nearly $A400bn. It has benefited from low interest rates, which in turn has prompted a sharp rise in house prices, but CBA has downplayed concerns about a housing bubble. CBA shares closed 0.9 per cent lower at $A80.96 on 13 August 2014, although the stock has gained 8.6 per cent in the last year

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN BUREAU OF STATISTICS, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, ALPHINITY INVESTMENT MANAGEMENT PTY LTD

Banks count on trust to fend off new players

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Original article by Michael Bennet
The Australian – Page: 21 : 12-Aug-14

Bendigo & Adelaide Bank CEO Mike Hirst has commented on the new competition posed to the banking sector in Australia and globally by electronic payment services providers such as PayPal. He noted that these challengers lack the trust consumers still have in the established banks, which also command larger holdings in their accounts. Hirst argued that the main threat to the industry was a potential serious data breach by computer hackers, which would erode the confidence customers have in the institutions

CORPORATES
BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, PAYPAL INCORPORATED, MACQUARIE GROUP LIMITED – ASX MQG

Big four banks lead lenders in slashing term deposit rates for savers

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Original article by Michael Bennet
The Australian – Page: 21 : 6-Aug-14

New data issued by Canstar show that Australia’s four main banks have taken the record low official cash interest rate as their cue to not only reduce home loan rates but the interest paid on term deposits. The five-year term rate has been cut by 15 basis points to 4.05% at National Australia Bank, and 20 basis points to 4.15% at Westpac Banking. A reduction of 40 basis points to 3.6% has also been announced by Suncorp. Commonwealth Bank of Australia had recently started a move by the major lenders to drop the fixed-rate mortgage rate to 4.99% for the first time ever

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, SUNCORP GROUP LIMITED – ASX SUN, CANSTAR PTY LTD, RESERVE BANK OF AUSTRALIA, DEUTSCHE BANK AG, HSBC BANK AUSTRALIA LIMITED, MACQUARIE BANK LIMITED – ASX MBL, MOODY’S INVESTORS SERVICE INCORPORATED, AUSSIE HOME LOANS LIMITED

Confusion with Financial Planner independence continues

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 4-Aug-14

A Roy Morgan Research Consumer Single Source survey has found that considerable confusion remains among the users of Australian financial planners regarding the extent to which the planner is perceived to be independent. This is particularly so when the financial planner is branded differently to its parent company. For example, 55 per cent of clients of Commonwealth Bank-owned Financial Wisdom consider it to be independent, while just 14 per cent of clients consider Commonwealth Bank-branded planners to be independent

CORPORATES
ROY MORGAN RESEARCH LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, FINANCIAL WISDOM LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, GODFREY PEMBROKE FINANCIAL SERVICES LIMITED, RETIREINVEST PTY LTD, COUNT WEALTH ACCOUNTANTS, AMP LIMITED – ASX AMP, CHARTER FINANCIAL PLANNING LIMITED

Start-ups key as change batters the big four

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Original article by Damon Kitney
The Australian – Page: 15 : 4-Aug-14

Consultants at Ernst & Young and KPMG warn that large companies must seek strategic alliances with small start-ups in order to safeguard against digital disruption. A major sector in need of such an approach is that of banking in Australia, and the four main lenders are already facing competition by online payments businesses such as PayPal. However Brian Hartzer, CEO Australian financial services at Westpac Banking, argues the banks can themselves behave like start-ups. Kelly Bayer Rosmarin, group executive institutional banking and markets at Commonwealth Bank of Australia, also says they have an advantage in the shape of large stores of customer data

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, PAYPAL INCORPORATED, AMAZON.COM INCORPORATED, KPMG, ERNST AND YOUNG

Bendigo ‘redy’ to pay through smartwatches

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Original article by Shaun Drummond, Ruth Liew
The Australian Financial Review – Page: 17 : 28-Jul-14

Bendigo & Adelaide Bank has launched a new mobile payments network that is dubbed "redy" and can be used with a Samsung smartwatch and smartphone. The technology was developed by the regional bank’s Community Telco subsidiary. The redy system uses QR codes to verify transactions, while customers also receive an online token for each redy transaction, which can be converted into cash that can be spent or donated to charity

CORPORATES
BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, COMMUNITY TELCO AUSTRALIA PTY LTD, PAYPAL AUSTRALIA PTY LTD, SAMSUNG CORPORATION, COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, GOOGLE INCORPORATED

Low rates spur homeowners to clear mortgages

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Original article by Clancy Yeates
The Australian Financial Review – Page: 13 & 16 : 28-Jul-14

National Australia Bank (NAB) notes that many of its home loan customers are taking advantage of low interest rates to pay off their mortgage more quickly. Some 85 per cent of customers’ monthly repayments now exceed the minimum requirement. Anthony Cahill of NAB says customers are becoming more informed and prudent about understanding and managing their debt. He also downplays concerns about banks easing their lending standards, stressing that NAB assesses borrowers very closely

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. DEPT OF THE TREASURY, CREDIT SUISSE (AUSTRALIA) LIMITED, RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Mortgage rates hit record lows

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Original article by Jonathan Shapiro|Clancy Yeates|Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 24-Jul-14

Three of Australia’s four major banks reduced their fixed mortgage interest rates on 23 July 2014, after the five-year swap rate fell to just 3.11 per cent in the previous week. The Commonwealth Bank’s five-year fixed rate has fallen to a record low of just 4.99 per cent, with Westpac and National Australia Bank reducing their rates for new customers to the same level. Meanwhile, market watchers expect the Reserve Bank to leave the cash rate on hold after inflation rose to three per cent in the second quarter

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA|WESTPAC BANKING CORPORATION – ASX WBC|NATIONAL AUSTRALIA BANK LIMITED – ASX NAB|RESERVE BANK OF AUSTRALIA|AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ|BELL POTTER SECURITIES LIMITED|BELL FINANCIAL GROUP LIMITED – ASX BFG|UBS HOLDINGS PTY LTD|MALAYSIAN AIRLINE SYSTEMS|AUSTRALIAN BUREAU OF STATISTICS|RATECITY PTY LTD|MOZO PTY LTD|MEMBERS EQUITY BANK PTY LTD|UBANK

CBA on track for planners: Norris

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Original article by Steve Creedy
The Australian – Page: 21 : 14-Jul-14

New Commonwealth Bank of Australia (CBA) CEO Ian Narev has issued an apology to customers affected by malpractice in its financial planning division between 2006 and 2010. The CEO at that time, Sir Ralph Norris, has now commented that he approves of Narev’s efforts in dealing with the scandal. It may cost the bank more than twice the $A52m already paid in compensation to the victims. CBA has also asked ex-High Court judge Ian Callinan to head a review of any further complaints. Sir Ralph says he was advised in 2010 that the matter was with the Australian Securities & Investments Commission

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH FINANCIAL PLANNING LIMITED