|Bid||82.68 x 0|
|Ask||82.70 x 0|
|Day's Range||81.91 - 82.70|
|52 Week Range||65.23 - 83.00|
|Beta (3Y Monthly)||0.91|
|PE Ratio (TTM)||16.66|
|Earnings Date||Aug 7, 2019|
|Forward Dividend & Yield||4.31 (5.24%)|
|1y Target Est||73.17|
(Bloomberg) -- New Zealand plans to introduce a bank deposit protection regime to bring it into line with other developed nations and increase public confidence in its lenders.“New Zealand has been an outlier for many years in that we don’t have a formal deposit protection regime to support Kiwis if a bank were to fall over,” Finance Minister Grant Robertson said in a statement Monday in Wellington. While no decisions had been taken yet on how the system would be funded, deposit protection regimes elsewhere were often based on a bank levy, he later told a news conference.New Zealand’s banking system is dominated by four big Australian lenders -- Australia & New Zealand Banking Group Ltd., National Australia Bank Ltd., Westpac Banking Corp. and Commonwealth Bank of Australia -- which together hold around 90% of deposits. Separately, the RBNZ has told the banks it wants them hold more capital to make them more resilient.Adopting deposit protection is part of a review of the central bank’s underlying legislation and follows reports from the OECD and IMF that said New Zealand’s banking system might be more vulnerable in a crisis without one. The government will also give the RBNZ more tools to bolster prudential supervision as part of the review.Limited ProtectionNew Zealand is proposing deposit protection of up to NZ$50,000 ($33,000), which would cover 90% of individual bank deposits, but only about 40% of the total value, Robertson said. Final decisions and details will be announced in early 2020.The proposed regime would put the nation toward the lower end of protection when compared to similar economies, Robertson said. Australia introduced a guarantee on deposits of up to A$250,000 ($174,000) in 2008 at the height of the global financial crisis, while the U.S. guarantees deposits of up to $250,000 and the U.K. guarantees up to 85,000 pounds ($108,000).Robertson said the next phase of the review of the RBNZ will include looking at the bank’s supervision and enforcement powers, and whether penalties are tough enough to discourage certain behaviors.The government is considering adopting elements of overseas frameworks, which would increase the responsibilities and accountabilities of senior executives for the actions of New Zealand’s banks and licensed deposit-takers, he said.‘Stricter Regime’Models in Australia and the U.K. go a step further than New Zealand’s current director-attestation regime for banks by also holding senior managers to account for the prudent management of their bank within their area of responsibility, he said.“We want to look at the balance between the more light-handed regulatory model that the Reserve Bank has traditionally had, versus what we’ve been advised by the IMF and others over the years should be a stricter regime,” Robertson said.The announcement comes after the RBNZ last month censured ANZ Bank New Zealand Ltd. over persistent failure to comply with rules around modeling risk capital requirements.Earlier Monday, the RBNZ requested that ANZ New Zealand provide two independent reports to assure the central bank it is operating in a prudent manner. Last week, ANZ New Zealand Chief Executive Office David Hisco quit after a review revealed mis-characterization of personal expenses.New Zealand Prime Minister Jacinda Ardern said Monday there was no need for New Zealand to follow Australia and hold a Royal Commission into banking.The government has also taken a number of in-principle decisions to guide the review of the RBNZ Act:The RBNZ will retain a prudential supervisory role, rather than separating it into a new agencyA new governance board will be established that will be given statutory authority over all RBNZ decisions apart from monetary policy The Treasury Department will be the RBNZ’s monitoring agent The separate regulatory regimes for banks and non-bank deposit takers will be merged into one To contact the reporter on this story: Tracy Withers in Wellington at email@example.comTo contact the editors responsible for this story: Matthew Brockett at firstname.lastname@example.org, Peter VercoeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Australia’s central bank is likely to lower interest rates again to drive increased hiring and boost households’ confidence that inflation will return to target.The Reserve Bank made the comment in minutes of its June 4 policy meeting, when it eased the cash rate to 1.25% in the first reduction in almost three years. The report was released in Sydney Tuesday.“Given the amount of spare capacity in the labor market and the economy more broadly, members agreed that it was more likely than not that a further easing in monetary policy would be appropriate in the period ahead,” policy makers said. “They also recognized, however, that lower interest rates were not the only policy option available to assist in lowering the rate of unemployment.” In a speech following the rate cut, RBA Governor Philip Lowe warned against over-reliance on monetary policy, saying that infrastructure investment and structural reforms could also help speed economic growth.The Australian dollar fell after Tuesday’s report, buying 68.45 U.S. cents at 12:32 p.m. in Sydney, compared with 68.57 cents before its release.The central bank is again homing in on inflation, acknowledging it has remained below target for three years and could start to impact household expectations. When he took the helm in 2016, Lowe said RBA officials aren’t “inflation nutters” and were focused on boosting financial system resilience through better lending standards and deflating asset prices.“The inflation target plays an important role as a strong medium-term anchor for inflation expectations, to help deliver low and stable inflation, which in turn supports sustainable growth in employment and incomes,” the board said in Tuesday’s minutes.The central bank again spelled out that its growth, inflation and employment outlook were based on market expectations that rates would be lower in the period ahead.“The July meeting is clearly live, but we marginally favor August for the next 25 basis-point cut because it coincides with the Statement on Monetary Policy,” said Gareth Aird, senior economist at Commonwealth Bank of Australia, referring to the RBA’s quarterly update of economic forecasts. “Back-to-back rate cuts may have a negative impact on household confidence.”Commonwealth updated its RBA forecast earlier today and now sees two reductions -- in August and November -- to take the cash rate down to 0.75%.Debt RiskThe RBA board was also confident that the easing wouldn’t undo the past three years’ work: “members judged that a decline in interest rates was unlikely to encourage a material pick-up in borrowing by households that would add to medium-term risks in the economy.” Australia’s household debt currently stands at a record high.Policy makers reiterated that they expected lower rates to stimulate the economy through the currency, cheaper business borrowing costs and reduced mortgage payments. Household spending -- which accounts for almost 60% of GDP -- has slowed sharply amid a nation-wide property slump.The central bank said data received for the June quarter and indicators of future activity “had been mixed.” It also said employment growth was likely to moderate a little, based on liaison with firms and other forward indicators.The RBA is now targeting unemployment of 4.5% to try to rekindle inflation, down from the 5% it had previously estimated as full employment.(Updates with economist comment in 9th paragraph.)To contact the reporter on this story: Michael Heath in Sydney at email@example.comTo contact the editors responsible for this story: Nasreen Seria at firstname.lastname@example.org, Chris Bourke, Victoria BatchelorFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A walk out by barristers who act in criminal cases in England and Wales looks set to be averted next month after the UK government agreed a raft of new measures — including increasing prosecution fees for the first time in 20 years. Barristers had voted overwhelmingly to take action in July — which could include walking out of trials and refusing to take on work — if their demands for fee increases were not met. Last week the Criminal Bar Association said that 95 per cent of its members who had responded to its ballot — some 2,586 barristers — had voted to support action over prosecution fees.
Australia's central bank cut rates to a record low on Tuesday and signalled willingness to go further as a worsening Sino-U.S. trade war raises recession risks for the world economy, pushing policymakers into what could be a global monetary easing cycle. RBA Governor Philip Lowe said the rate cut was designed to support employment growth and lift inflation, which has consistently undershot its 2%-to-3% medium-term target. "It is possible that the current policy settings will be enough – that we just need to be patient.
What’s curious is that Commonwealth – the biggest of the four banks that dominate deposit-taking and lending in Australia – is acting an awful lot like cornered prey when things don’t seem so bad. For another, Commonwealth Bank is head and shoulders above its rivals on two crucial fronts: price-to-book and net interest margins. Commonwealth Bank has the largest workforce among Australia’s big four banks, and the second-lowest sales-per-employee ratio in the most recent half-year reporting period, according to data compiled by Bloomberg.
Moody's Investors Service has assigned definitive ratings to the notes issued by Perpetual Corporate Trust Limited in its capacity as the trustee of the Flexi ABS Trust 2019-1. "IMPORTANT NOTICE: MOODY'S RATINGS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS.
Moody's Investors Service has assigned ratings to Delta Air Lines, Inc.'s Pass Through Certificates, Series 2019-1 that the company announced earlier today: $425 million Class AA with a legal final due date of October 25, 2025 at Aa3 and $75 million Class A with a legal final due date of October 25, 2025 at A3 (together, "the Certificates"). The senior unsecured rating of Delta is Baa3, its rating outlook is stable and neither is affected by this rating action.
After a year of bruising interrogation, Australia's oligopoly banking system has emerged from a government-appointed inquiry with reputations tarnished and some top executives removed - but also an unexpected opportunity to rebuild. Proposed reforms to the mortgage broking industry revealed on Monday will potentially put billions of dollars of broker-originated loans in play in the banks' most important profit-generating sector. Australia's "Big Four" banks - Australia and New Zealand Banking Group, Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corp - now have the opportunity to battle for the money projected to leak from the mortgage broking sector and capture extra margins by cutting out an intermediary.
CANBERRA, Australia (AP) — The Commonwealth Bank of Australia recorded a drop in statutory net drop in its latest half-year to 4.6 billion Australian dollars ($3.3 billion) on Wednesday as the nation's biggest lender was hit by costs for misconduct, lower profit margins and a downturn in the housing market.
Commonwealth Bank of Australia, the country's biggest lender, posted a weaker than expected first-half profit on Wednesday as rising costs and fierce competition for mortgages squeezed its margins, sending its shares down sharply. The result reflects the pincer action that is putting a brake on profit growth in Australian banks: global market turmoil is making it more expensive for them to borrow money, while a housing downturn spurs competition for new customers. The inquiry's final report, published on Monday, recommended regulators consider prosecutions for 24 misconduct cases which may include CBA.
Australian bank shares surged the most in a decade on Tuesday after a long-awaited report on finance-sector misconduct recommended dozens of rule changes but spared the "Big Four" lenders any serious threat to their market dominance. In a report released by the government on Monday, the retired judge who led a public inquiry into financial-sector misconduct last year, referred 24 cases to regulators for possible prosecution. "It is possible that the banks may face criminal proceedings but we do not believe that any of the 76 recommendations by themselves will have a material financial impact," UBS analysts said in a research note.
A special government-appointed inquiry excoriated Australia's financial sector for misconduct on Monday, referring two dozen cases to regulators for possible legal action but leaving the structure of the country's powerful banks in place. Regulators will be subjected to a new oversight body and the financial industry's pay will be overhauled to remove conflicts of interest, according to the recommendations of the so-called Royal Commission. The recommendations come after the public inquiry heard 11 months of shocking revelations of the financial industry's wrongdoing, including that fees were charged to the accounts of dead people and that cash bribes were paid over the counter to win mortgage business, wiping A$60 billion from the country's top finance stocks.
The CEO and chairman of National Australia Bank Ltd were called out for apparent unwillingness to accept responsibility for past wrongs at the country's No. 4 lender in a landmark report on the sector, published on Monday. After a year-long inquiry, the financial services Royal Commission recommended referring some of the country's biggest money managers to regulators for possible further action in 24 cases, but largely avoided naming individuals. "Having heard from both the CEO, Mr Thorburn, and the Chair, Dr Henry, I am not as confident as I would wish to be that the lessons of the past have been learned," wrote the retired High Court judge who ran the inquiry, Kenneth Hayne, in his final report.
Australia's corporate regulators will be subjected to a new oversight body in a shake-up of the banking sector recommended on Monday by a high-powered independent inquiry into financial sector greed and malpractice. The government-appointed inquiry known as a Royal Commission also advised in its landmark report that remuneration structures across the industry be overhauled to remove systemic conflicts of interest. The commission's recommendations were released by the government after 11 months of shocking revelations of financial wrongdoing which wiped A$60 billion (33.22 billion pounds) from the country's top finance stocks.
SYDNEY (Reuters) - A powerful public inquiry into Australia's finance industry referred 24 instances of bad corporate behaviour to regulators for possible prosecution but did not suggest any individuals ...
Australian Treasurer Josh Frydenberg on Monday said the final report of a wide-scale inquiry into the banking system would end uncertainty hanging over an industry that was "a key artery" of the economy through the provision of credit. Speaking at a news conference after the release of the Royal Commission report into banking misconduct, Frydenberg said the principle focus of the government was to restore trust in the financial system while maintaining the flow of credit to the economy.
Australia's corporate and prudential regulators must undergo regular, rigorous assessments under an independent oversight body, a powerful review of the country's banking sector recommended in its long-anticipated final report on Monday. The move, aimed at strengthening the accountability of the country's two main regulators, comes after the year-long review found many instances of lax oversight or inadequate responses to poor conduct by financial services providers. In the 496-page document, Commissioner Kenneth Hayne said the new body, independent of the government, will have sweeping powers to conduct inspections of either regulator at will, issue notices to them to produce documents and deliver regular reviews.