BUSINESS FORECASTING – AUSTRALIA

Banks, super face new round of compo costs

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Original article by Joyce Moullakis
The Australian – Page: 21 : 7-Nov-19

Law firm Minter Ellison has warned that banks and wealth managers could face additional customer remediation costs if Westpac does not appeal against a recent judgment regarding the provision of financial advice. Minter Ellison partner Andrew Bradley says the Federal Court’s decision to overturn a judgment in favour of Westpac could also prompt more class actions in the financial services sector. The case centred on the distinction between general and personal advice.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, MINTER ELLISON, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, HERBERT SMITH FREEHILLS PTY LTD

Rio Tinto could hit iron ore goal in 2022

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 1-Nov-19

The head of Rio Tinto’s iron ore division, Chris Salisbury, has told investors that production at its Koodaideri mine in Western Australia is slated for late 2021. He also said the mine will give Rio Tinto the capacity to ship 360 million tonnes of iron ore from the Pilbara each year. This target was first set in 2013, but to date the most Rio Tinto has shopped from the Pilbara in a single year is 338.2 million tonnes. Analysts expect its Pilbara shipments to total 325.5 million tonnes in 2019.

CORPORATES
RIO TINTO LIMITED – ASX RIO, VUMA FINANCIAL LIMITED

Banks face a crisis: former Westpac chief Morgan

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Original article by David Rogers
The Australian – Page: 17 & 28 : 31-Oct-19

Former Westpac CEO David Morgan says the Australian banking sector is experiencing its fourth crisis, due to factors such as slowing economic growth, the misconduct exposed by the Hayne royal commission, and the Banking Executive Accountability Regime. The banking industry veteran, who is currently CEO of Chi-X Australia, cautions against over-regulating the sector, noting that the nation has a world-class banking system by global standards.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, CHI-X AUSTRALIA PTY LTD, INTERNATIONAL MONETARY FUND, AUSTRALIA. DEPT OF THE TREASURY

JB Hi-Fi says low interest rates a double-edged sword for retailers

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Original article by Sue Mitchell
The Australian Financial Review – Page: 19 : 25-Oct-19

JB Hi-Fi has advised that its Australian stores recorded same-store sales growth of 3.7 per cent in the September quarter, while its New Zealand arm’s same-store sales were up 3.8 per cent. JB Hi-Fi CEO Richard Murray says group sales are still expected to increase by about 2.2 per cent to $7.65bn in 2019-20. He notes that while consumer confidence has improved since the 18 May federal election, the cash rate’s fall to a record low has also prompted some fears about the state of the economy.

CORPORATES
JB HI-FI LIMITED – ASX JBH, THE GOOD GUYS, NICK SCALI LIMITED – ASX NCK, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL

Westpac refund costs approach $1 billion

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Original article by Lucas Baird, Aleks Vickovich
The Australian Financial Review – Page: 20 : 24-Oct-19

Westpac has advised that its financial accounts for the second half of 2018-19 will include an after-tax provision of $341m for its customer remediation program. This will lift the bank’s remediation costs for the full year to $958m, and $1.9bn on a pre-tax basis since 2017. Westpac has also flagged the potential for significant financial penalties as a result of Austrac’s investigation into its compliance with anti-money laundering laws. Westpac’s financial results for the year to 30 September will be released in early November.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, EVANS AND PARTNERS ASIA FUND – ASX EAF, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Rio on track for world iron ore crown

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 17-Oct-19

Rio Tinto shipped 86.1 million tonnes of Pilbara iron ore during the September quarter, and 240 million tonnes in the first nine months of 2019. A strong performance in the fourth quarter could see Rio Tinto’s full-year exports top 330 million tonnes, which is the upper range of its guidance for the calendar year. This would also allow it to surpass Vale as the world’s biggest iron ore exporter, given that the Brazilian company now expects to export about 319 million tonnes for the year. Meanwhile, Rio Tinto has advised that its alumina and bauxite production in 2019 will be below previous guidance.

CORPORATES
RIO TINTO LIMITED – ASX RIO, RIO TINTO LIMITED – ASX RIO, VALE SA, TURQUOISE HILL RESOURCES LIMITED

Southern Cross hit hard by sell-off

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Original article by Lilly Vitorovich
The Australian – Page: 19 : 16-Oct-19

Southern Cross Media Group has advised that EBITDA for the first half of 2019-20 is expected to be within the range of $60m to $68m, compared with $82m for the same period in 2018-19. The group has also reported that revenue for the first quarter was 8.5 per cent lower than previously, due to challenging conditions in the advertising market. CFO Nick McKechnie says the group has no plans for further asset sales after selling its broadcast transmission assets in August.

CORPORATES
SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, BROADCAST AUSTRALIA PTY LTD

ANZ compo bill jumps to $1.2bn

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Original article by Joyce Moullakis
The Australian – Page: 21 : 9-Oct-19

The ANZ Bank has advised that its cash profit for the second half of 2018-19 will be marred by an after-tax charge of $559m due to increased provisions for customer-related remediation. ANZ has now announced a total of $1.22bn in after-tax compensation charges since 2017. Australia’s major banks have set aside a combined $7.6bn pre-tax to compensate customers, and Jarrod Martin of Credit Suisse expects this to increase. ANZ will release its financial results for the year to 30 September in late October.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, CREDIT SUISSE (AUSTRALIA) LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, MORGANS FINANCIAL LIMITED, CITIGROUP PTY LTD

Billion dollar hit for NAB after ASIC action

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Original article by James Fernyhough
The Australian Financial Review – Page: 15 & 18 : 3-Oct-19

National Australia Bank has advised that its cash earnings for the second half of 2018-19 will fall by about $1.23bn, while its full-year net profit will fall by $1.18bn. This has been attributed to an additional after-tax charge of $832m for its customer remediation program, as well as a change to its software capitalisation policy. NAB’s total provisions for customer remediation in the wake of the fees-for-no-service scandal has now topped $2bn. NAB will release its full-year results on 7 November.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MOODY’S INVESTORS SERVICE INCORPORATED, S&P GLOBAL RATINGS

Mining earnings heading for peak

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Original article by Sarah-Jane Tasker
The Australian – Page: 17 & 20 : 30-Sep-19

Resources Minister Matt Canavan says the latest Resources and Energy Quarterly report underlines the importance of mining to Australia’s economy, noting that the sector contributed a third of GDP growth in the June 2019 quarter. He has urged lenders to continue to provide financing for resources and energy projects, at a time when local mining companies intend to increase their annual investment expenditure for the first time in six years. The report forecasts that resources and energy exports will top $282bn in 2019-20, eclipsing the record $279bn in 2018-19.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE