BANKS AND BANKING – AUSTRALIA

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

Analysts urge Westpac to close 200 branches

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Original article by Clancy Yeates
The Australian Financial Review – Page: 17 : 11-Jul-14

Westpac Banking could reduce costs by closing up to 200 branches. Analysts from JPMorgan said that Westpac generated a third less profit per branch than some competitors. They said that the St George branches, acquired in 2008, were a drain on the business. Closing 200 branches is estimated to save $A400 million a year. The analysts said that Westpac should reconsider its strategy of offering a number of brands

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, JP MORGAN AUSTRALIA LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BANK OF SOUTH AUSTRALIA LIMITED, BANK OF MELBOURNE LIMITED, RAMS HOME LOANS PTY LTD, BANK OF WESTERN AUSTRALIA LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, UBANK, STANDARD AND POOR’S (AUSTRALIA) PTY LTD

Bank repossesses bikie clubhouse

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Original article by Chris Vedelago
The Age – Page: 12 : 10-Jul-14

A writ has been filed in the Supreme Court of Victoria by Commonwealth Bank of Australia, for the repossession of a property in London Drive, Bayswater. It is the clubhouse of the Immortals outlaw motorcycle gang, which has allegedly defaulted on $A117,000 worth of business loans at an interest rate of 8.3%-plus. The premises, searched by Victoria Police in 2013, house a licensed bar and are the venue of Immortals fund raising activities such as its annual Fancy Dress Schoolgirls Festival

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, IMMORTALS MOTORCYCLE CLUB, BANDIDOS MOTORCYCLE CLUB AUSTRALIA LIMITED, SUPREME COURT OF VICTORIA, VICTORIA POLICE

Banks settle case with liquidators of ABC

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Original article by Michael Bennet
The Australian – Page: 21 : 8-Jul-14

The liquidators of ABC Learning Centres have reached an in-principle settlement with a syndicate of banks. The compromise was reached just before the case against the lenders was to be heard in the Federal Court of Australia. Bentham IMF was meant to argue that the banks "jumped the creditors’ queue". Child care facilities operator ABC Learning Centres collapsed in November 2008, with debts of $A1.6 billion

CORPORATES
BENTHAM IMF LIMITED – ASX IMF, ABC LEARNING CENTRES LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FEDERAL COURT OF AUSTRALIA

CBA exposed to flood of claims

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Original article by James Eyers, Phillip Coorey
The Australian Financial Review – Page: 1-Jun : 4-Jul-14

Commonwealth Bank of Australia (CBA) has announced a new compensation program. CEO Ian Narev said on 3 July 2014 that the bank is determined to rectify the problem of inappropriate advice being given to clients by the bank’s financial planning subsidiaries. Under the new program, customers who received advice between 1 September 2003 and 1 July 2012 can apply to the bank for an internal assessment

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMONWEALTH FINANCIAL PLANNING LIMITED, FINANCIAL WISDOM LIMITED, MAURICE BLACKBURN PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, FINANCIAL PLANNING ASSOCIATION OF AUSTRALIA LIMITED