TRUST – AUSTRALIA

AMP steps up bid to regain lost trust

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 16 : 13-May-19

AMP CEO Francesco De Ferrari has told customers in an open letter that the wealth manager is making significant changes as it seeks to regain their trust. AMP’s reputation took a battering as a result of deficiencies in its operations that were exposed by the Hayne royal commission, with its share price falling from $5.20 to $2.45 during 2018. The letter, which has been reprinted as an advertisement in a number of newspapers, notes that AMP has made fundamental changes to its operations and has bolstered its internal processes.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

AMP’s reputation hit harder than big banks

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Original article by Jessica Gardner
The Australian Financial Review – Page: 16 : 16-Apr-19

The rankings of the four major banks and AMP have fallen sharply in the latest corporate reputation index, which is compiled by the Reputation Institute. AMP has fallen 18 places in the annual index, and now ranks last in the list of 60 companies. Oliver Freedman of the Reputation Institute notes that AMP’s corporate reputation has not improved since the Hayne royal commission exposed misconduct at the financial services group in 2018. He adds that AMP and the banks must work harder to restore their reputations.

CORPORATES
AMP LIMITED – ASX AMP, 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, REPUTATION INSTITUTE PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, WOOLWORTHS GROUP LIMITED – ASX WOW

Federal Election 2019: ALP (52.5%) starts ahead of L-NP (47.5%) but wrong to say Labor has election won – Michele Levine, CEO Roy Morgan

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Original article by Roy Morgan
Market Research Update – Page: Online : 12-Apr-19

Yesterday Prime Minister Scott Morrison called the Federal Election for May 18, and the last weekend’s Roy Morgan ‘face-to-face’ poll showed the ALP (52.5%) cf. L-NP (47.5%) with a winning lead as official campaigning begins. However, the example of the 1993 Liberal ‘unloseable’ Federal election showed that one mis-step can swing the result of the election, when Opposition Leader John Hewson ‘stumbled’ over the impact of the GST on birthday cakes and subsequently lost the election. Prime Minister Morrison’s appeal to ‘trust’ in his re-election campaign is ‘gutsy’, but the real key is for leaders not to allow ‘distrust’ to attach to their campaigns and leadership. It is ‘distrust’ that really drives many electors’ voting decisions. Of more concern for electors are the areas where they ‘distrust’ a party or leader. What are electors worried about? The ALP has significant ‘distrust’ issues with their relationship with the unions and the ALP’s many potential changes to the tax system. For the L-NP the uncertainties about the change of leadership of the L-NP are still generating ‘distrust’, and the ‘shenanigans’ that big business – including financial institutions – have been engaging in are seen as a bigger problem driving ‘distrust’ in the L-NP than Labor. View the full 9-minute video with Roy Morgan CEO Michele Levine explaining the key drivers for next month’s Federal Election at this link.

CORPORATES
ROY MORGAN LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA

NAB, ANZ most at risk as Millennials switch

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Original article by Patrick Durkin
The Australian Financial Review – Page: 18 : 25-Mar-19

Millennial Future has found that National Australia Bank and ANZ customers are most likely to change banks in the wake of the banking royal commission. NAB came in for a lot of criticism during the royal commission, while a February survey by Roy Morgan found that NAB was the least trusted bank brand in Australia. Millennial Future’s findings were based on a survey of over 1,200 bank customers between the ages of 19 and 36, although it found that bank and finance brands were still considered more trustworthy than media and insurance brands.

CORPORATES
MILLENNIAL FUTURE, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ROY MORGAN LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Morgan backs broker fee reform

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Original article by Richard Gluyas
The Australian – Page: 17 & 18 : 4-Mar-19

David Morgan has stepped down as deputy chairman of Dutch bank NIBC after eight years. Morgan notes that the mortgage broking industry in the Netherlands had survived after commissions were replaced by borrower-paid fees, and he does not see why the same system, as recommended by the banking royal commission, should not work in Australia. Morgan, a former CEO of Westpac, does not believe that it will take the banks as long to regain trust as some have speculated.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, NIBC BANK NV, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, IOOF HOLDINGS LIMITED – ASX IFL, AMP LIMITED – ASX AMP, AUSTRALIA. DEPT OF THE TREASURY

NAB the big loser from Hayne Royal Commission – most distrusted bank in Australia

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Original article by Roy Morgan
Market Research Update – Page: Online : 15-Feb-19

Roy Morgan has been measuring bank trust and distrust since 2017 and recently conducted a survey in January before the release of the Hayne report, and another in February during the week following the report being made public. The Roy Morgan Net Trust Score Survey in January revealed CBA as the bank brand with the lowest level of trust and the highest level of distrust. However, in the wake of the Hayne report, NAB skyrocketed into the unenviable position as Australia’s least trusted and most distrusted bank brand. In January 36.9% of Australians distrusted NAB, but in the immediate wake of the report’s release the number of Australians distrusting NAB soared to 53.7%. Simultaneously, NAB’s level of trust plunged from 18.5% to 11.5%, delivering it the banking sector’s worst Net Trust Score of -42.2%, with the other three major brands in the minus twenties. Roy Morgan CEO Michele Levine says this is the highest level of distrust we have ever seen for a bank brand in Australia.

CORPORATES
ROY MORGAN LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Rio head says the public does not trust miners

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 10-Dec-18

Chris Salisbury, the head of Rio Tinto’s iron ore division, notes that many Australians do not trust the mining sector, while many are not aware of Rio Tinto’s contribution to the domestic economy. He says the resources group contributed $42.7 billion to GDP in 2017 and paid some $5bn in taxes and royalties. Meanwhile, Rio Tinto expects to meet its deadline of 31 December to fully implement its AutoHaul project in Western Australia.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, WESTERN AUSTRALIAN MINING CLUB, WESTERN AUSTRALIA. DEPT OF ENVIRONMENT AND CONSERVATION, HITACHI LIMITED, ANSALDO STS, ERNST AND YOUNG

Trust key to Australian economy: RBA boss

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Original article by Marnie Banger
News.com.au – Page: Online : 21-Nov-18

Reserve Bank governor Philip Lowe has stressed the importance of trust to the Australian economy and society. Lowe noted that the level of trust in banks has been damaged by the revelations of the financial services royal commission; he added that to restore trust, banks must take action of resolve conflict of interest issues, abolish poorly-designed incentive systems and ensure that there is accountability for misconduct. Lowe also said consumers need to be able to trust that their living standards will improve over time. In recent years, wages have increased in line with the inflation rate.

CORPORATES
RESERVE BANK OF AUSTRALIA, COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA

ALDI still most-trusted brand, but others lose ground

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Original article by Roy Morgan
Market Research Update – Page: Online : 21-Nov-18

The latest Roy Morgan Net Trust Score Survey, which was conducted in October 2018, shows that Aldi continues to be Australia’s most trusted brand. Bunnings, Qantas and the ABC have also held their positions in the top 10 list of brands with positive net trust scores. However, there have been big moves in the rankings since the July survey. Car insurance group NRMA has fallen from 5th to 7th place, Bendigo Bank has fallen from 7th to 9th place, and Samsung, Myer, RACQ and IGA have fallen out of the top 10 altogether. Kmart, ING, Toyota and Target all saw their Net Trust Scores improve enough to secure a place in the top 10. While trust is essential in the era of fake news, distrust is the real risk to a sustainable future for companies operating in Australia. Brands with large distrust scores include the big four banks, AMP, Telstra, AGL and Coles. Roy Morgan CEO Michele Levine says the key message of the Roy Morgan Net Trust Score survey is that growing distrust can be a disaster, leading to customer churn, loss of market share and in some cases a long slide into oblivion. Understanding what drives trust with customers – and just as importantly with potential customers – is essential to brands wishing to improve their Net Trust Score.

CORPORATES
ROY MORGAN LIMITED, ALDI STORES SUPERMARKETS PTY LTD, BUNNINGS GROUP LIMITED, QANTAS AIRWAYS LIMITED – ASX QAN, AUSTRALIAN BROADCASTING CORPORATION, NRMA LIMITED, BENDIGO BANK, SAMSUNG ELECTRONICS AUSTRALIA PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, THE ROYAL AUTOMOBILE CLUB OF QUEENSLAND LIMITED, IGA, KMART AUSTRALIA LIMITED, ING AUSTRALIA HOLDINGS LIMITED, TOYOTA MOTOR CORPORATION AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, AMP LIMITED – ASX AMP, TELSTRA CORPORATION LIMITED – ASX TLS, COLES SUPERMARKETS AUSTRALIA PTY LTD, AGL ENERGY LIMITED – ASX AGL

LaTrobe University Bold Thinking Series – Is Democracy Broken featuring Roy Morgan CEO Michele Levine, Tony Walker, Mark Textor and others (Video)

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Original article by Roy Morgan
Market Research Update – Page: Online : 29-Oct-18

The high turnover of Prime Ministers in Australia suggests a democratic system showing signs of a broader political malaise. Analysing the state of Australian politics means understanding the interplay of "trust" and, even more importantly "distrust" in politics. (Vid 15:40). Levine asserts that "Trust is more important than ever before. When we’re all unnerved and uncertain, trust is absolutely critical. So trust is really the foundation of all human connections. It’s the glue." (Vid: 23:15). Levine on the importance of polls even considering the challenges faced in this day and age: "It’s really really important and we shouldn’t knock these polls completely. Polls are actually the voice of the people" and "Our leaders really need to understand what people, everybody’s fears, are." (Vid: 1:04:30) Roy Morgan Executive Chairman Gary Morgan posed a question about Australian democracy – to Katharine Murphy of the Guardian – "What have you done about correcting the error on what you published in the Guardian the ReachTel poll commissioned by Greenpeace" (on the Wentworth by-election). Murphy responded by expressing concern about "single seat polls" and "the rise of activists groups commissioning polls in order to massage public opinion in various ways and a lot of those activist commissioned polls have push poll questions that elicit certain responses from voters". For the full video of the discussion access the video here:

CORPORATES
ROY MORGAN LIMITED