Loans double at non-banks as majors slide

Original article by Aleks Vickovich
The Australian Financial Review – Page: 18 : 12-Nov-19

Australia’s four major banks and their subsidiaries experienced a 10 per cent fall in market share in business lending and equipment finance in 2018-19, according to the inaugural business lending index report, put together by mortgage aggregator FAST. FAST Group CEO Brendan Wright says the ability of the major banks to service the demands of business customers is being hampered by distractions and regulatory hurdles, and that non-bank players are taking advantage of this situation.

CORPORATES
FAST GROUP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Rapid growth in use of Buy-Now-Pay-Later digital payments – such as Afterpay, zipPay and zipMoney

Original article by Roy Morgan
Market Research Update – Page: Online : 5-Nov-19

New research from Roy Morgan shows that 1.95 million Australians aged 14+ used one of the latest ‘buy-now-pay-later’ digital payment methods such as Afterpay, zipPay or zipMoney in the year to September 2019, up from 1.38 million in the previous 12 months. Australians between the ages of 14-34 account for 55.9% of ‘buy-now-pay-later’ users, with those in the 25-34 age range making up 33.5% of all users. To put this in perspective, that age group represents only 18.1% of the population aged 14+, which means that those aged 25-34 are nearly twice as likely to be using a ‘buy-now-pay-later’ system as the average across the whole population. By contrast, Australians over 50 make up only 14.2% of pay-later users despite being 40.7% of the population aged 14+. Meanwhile, the use of credit cards is declining, with the percentage of Australians holding a credit card down about 3% points over the past year. This data is from Roy Morgan’s Single Source survey, based on in-depth interviews conducted face-to-face with around 50,000 consumers each year in their homes.

CORPORATES
ROY MORGAN LIMITED, AFTERPAY TOUCH GROUP LIMITED – ASX APT, ZIPPAY, ZIPMONEY

IOOF to push ahead with buyout of ANZ’s wealth arm

Original article by Andrew White
The Australian – Page: 21 : 18-Oct-19

Shares in wealth manager IOOF Holdings rallied on 17 October after it moved a step closer to completing a deal to acquire the ANZ Bank’s OnePath pensions and investments division. IOOF has advised that it will pay just $850m for the business if it gains regulatory approval by 30 June. This represents a 13 per cent discount to the previously agreed purchase price. Meanwhile, the Australian Prudential Regulation Authority has indicated that it will not appeal a recent Federal Court decision that cleared five IOOF executives and directors of misconduct.

CORPORATES
IOOF HOLDINGS LIMITED – ASX IFL, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ONEPATH AUSTRALIA LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, FEDERAL COURT OF AUSTRALIA

AMP to hit costs in bank merger

Original article by Cliona O’Dowd
The Australian – Page: 17 & 23 : 11-Oct-19

Bell Potter analyst Lafitani Sotiriou has questioned AMP’s decision to merge its bank and Australian wealth divisions, suggesting that it is "strategy on the run". Allan Gray Australia CEO Simon Mawhinney in turn says the move raises conflicts of interest concerns. An AMP spokeswoman says the two businesses will have separate financial services licences and will remain separate legal entities after being folded into the new AMP Australia. Alex Wade will be CEO of the combined business.

CORPORATES
AMP LIMITED – ASX AMP, AMP BANK LIMITED

Major banks hit as credit growth stalls

Original article by Joyce Moullakis
The Australian – Page: 17 & 28 : 1-Oct-19

Official data shows that annual growth in credit fell to an eight-year low of 2.9 per cent in the year to August, after rising by just 0.2 per for the month. Housing credit and business credit also increased by 0.2 per cent in August, with growth of 3.1 per cent and 3.4 per cent respectively for the year to August. Ed Henning of CLSA anticipates a slight improvement in credit growth in coming months, although Chris Read of Morgan Stanley says credit growth is unlikely to rebound in the near-term unless there is an upturn in housing turnover as well as prices.

CORPORATES
CLSA AUSTRALIA PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA, SWITZER ASSET MANAGEMENT LIMITED, MST MARQUEE, UBS HOLDINGS PTY LTD, 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, MACQUARIE GROUP LIMITED – ASX MQG

IOOF no closer to ANZ deal after court win

Original article by Joanna Mather, Aleks Vickovich
The Australian Financial Review – Page: 13 & 17 : 23-Sep-19

The Australian Prudential Regulation Authority has failed in its court case against IOOF Holdings, in which it sought to argue that the financial services company breached its obligation to act in its members’ best interests. It had been the first time in more than 10 years that APRA had taken superannuation trustees to court, with Federal Court Justice Jayne Jagot finding that its legal arguments were "unpersuasive". Despite APRA’s lack of success in the case, industry observers say it does not mean that IOOF is guaranteed to complete its takeover of the ANZ Bank’s wealth unit.

CORPORATES
IOOF HOLDINGS LIMITED – ASX IFL, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ALLENS, ADVISER RATINGS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, MORNINGSTAR PTY LTD

S&P gives AMP thumbs down over bad news

Original article by James Frost
The Australian Financial Review – Page: 19 : 28-Aug-19

The credit rating of wealth manager AMP has been downgraded from ‘A-‘ to ‘BBB+’ by S&P Global Ratings. The long-term issuer credit rating of AMP Bank and AMP Life have also been downgraded by one notch apiece. S&P has indicated that the ratings downgrade was primarily due to the recent deal to sell AMP Life to Resolution Life, which will have an impact on AMP’s group credit profile. S&P also said it may review AMP’s credit rating if the deal does not proceed, although this may not result in an upgrade.

CORPORATES
AMP LIMITED – ASX AMP, AMP LIFE LIMITED, AMP BANK LIMITED, S&P GLOBAL RATINGS, RESOLUTION LIFE GROUP LIMITED

Financial advisers too expensive and can’t be trusted: report

Original article by Duncan Hughes
The Australian Financial Review – Page: 2 : 27-Aug-19

The Australian Securities & Investments Commission has released the findings of a survey on consumers’ attitudes toward the financial advice sector. It shows that there is a high level of distrust regarding the sector; amongst other things, about 50 per cent of respondents believe that financial advisers are more concerned about making themselves rich than helping clients, while almost 30 per cent prefer to obtain financial advice from family members, friends or colleagues. The ASIC report is based on interviews with almost 2,500 investors.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AMP LIMITED – ASX AMP

Savers at risk in bank, credit union data hack

Original article by Joyce Moullakis
The Australian – Page: 19 : 26-Aug-19

The security of the New Payments Platform is under scrutiny in the wake of revelations that the system has been subject to a second data breach. Cuscal has indicated that only about three per cent of bank and credit union customers who have registered for a PayID have been affected by the breach, which equates to less than 92,000 customers. Westpac customers who use the real-time NPP system were affected by a data breach in June.

CORPORATES
CUSCAL, 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

AMP accused of leaving planners in limbo

Original article by Joyce Moullakis
The Australian – Page: 12 : 20-Aug-19

The Finance Sector Union will ask the Fair Work Commission to intervene over AMP’s plans to revamp its financial planning operations. AMP has indicated that it intends to reduce the amount it pays when acquiring financial planning practices as a ‘buyer of last resort’, as well as cutting adviser numbers. The AMP Financial Planners Association will hold a meeting during August to allow members to vote on possible courses of legal action against AMP.

CORPORATES
AMP LIMITED – ASX AMP, FINANCE SECTOR UNION, AUSTRALIA. FAIR WORK COMMISSION, AMP FINANCIAL PLANNERS ASSOCIATION