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NAB sticking with a long-term growth strategy

National Australia Bank chief executive Cameron Clyne is determined not to "short term the business" in response to mounting regulatory, funding and competitive pressures. Clyne said yesterday that he had spent his three years as chief executive digging NAB out of a hole and he did not intend to ... More
By Ian Rogers and John Kavanagh Published on Monday, 31 October, 2011 Filed under NAB, results

Macquarie Group management takes a tough line on returns

Macquarie Group chief executive, Nicholas Moore, has promised chareholders that he will take a tough line when it comes to seeing that business units achieve their performance targets. Business units at Macquarie will have to meet return on equity targets, and those that don't will be "on the way ... More
By Ian Rogers Published on Monday, 31 October, 2011 Filed under Macquarie, results

Banks face the funding challenge

Over the next few months the skills of Australian banks’ treasurers may be tested as rarely before. And their abilities to raise debt funding could have a real effect on bank share prices. Australia’s banks raise a huge volume of funds on overseas markets, simply because Australia does not ... More
By David Walker Published on Monday, 31 October, 2011 Filed under funding, bond issues, APRA, outlook

What the analysts are saying: NAB to maintain the momentum

National Australia Bank will continue to take market share away from its rivals in the retail and business banking markets, according to analysts. After the release of the bank's 2010/11 results last week, six out of six analysts' reports sighted by The Bank Investor have NAB rated a Buy (or ... More
By John Kavanagh Published on Monday, 31 October, 2011 Filed under NAB, results, analysts

Bendigo forecasts lower investor returns

Returns to investors in banks will fall as banks increase their capital ratios, Bendigo and Adelaide Bank's chair, Robert Johanson, told the annual meeting last week. "Increasing capital requirements, lower risk [and] more conservative balance sheets are part of the new, stricter regulatory world ... More
By Ian Rogers Published on Monday, 31 October, 2011 Filed under Bendigo, results

What the analysts are saying: bank earnings cycle has peaked

Investors can look forward to reports of earnings growth of between 10 and 20 per cent from the three of the big four banks that will report their 2010/11 financial results over the next two weeks. But the outlook for the 2011/12 year is far less certain and investors will be watching for guidance ... More
By John Kavanagh Published on Monday, 24 October, 2011 Filed under ANZ, NAB, WBC

Bank earnings as good as they get

Controversies over bank profits are never far away in Australia, and the profit reporting season for banks that kicks off this week, with National Australia Bank the first to report, will no doubt refresh the arguments once more. The headlines may be pretty familiar. The news will be of profits ... More
By Ian Rogers Published on Monday, 24 October, 2011

US money market funds favour Australian bank debt

One piece of not-so-good news from the week might be that European banks are not that much closer to working out, with a lot of help from their governments and central banks, how to stabilise their funding. The flip side of this looks like good news for Australian banks, since one important ... More
By Ian Rogers Published on Monday, 24 October, 2011 Filed under funding

Takeover in view for Customers ATM

A takeover bid sooner than later seems in prospect for ASX-listed Customers Limited, the leading owner of automatic teller machines in Australia and a successful consolidator in a once fractured sector. The Australian Securities Exchange last Monday forced Customers to confirm that it "held ... More
By Ian Rogers Published on Monday, 24 October, 2011 Filed under small institutions

Moody's puts Bank of Queensland under review

A second credit rating agency has its view on Bank of Queensland under review. Moody's said on Thursday that it may lower the A2 rating on long term debt and the Prime-1 rating on short term debt because of weakening asset quality. Momentum for a cut in its credit rating may be building, given ... More
By Ian Rogers Published on Monday, 24 October, 2011 Filed under BoQ, funding

Cost of bank debt rising

The comparative lull in bank funding in the term-debt market may be drawing to a close, with Commonwealth Bank and National Australia Bank last week marketing term debt and structured issues respectively. The funding push is significant because it shows major banks can raise funds at reasonable ... More
By Ian Rogers Published on Monday, 17 October, 2011 Filed under CBA, NAB

What the analysts are saying: store finance groups appeal

With consumers keeping their money in their wallets, it might be expected that sentiment towards finance companies specialising in store finance would be negative. However, several analysts have issued positive recommendation on Thorn Group and FlexiGroup in recent weeks. In a note issued on ... More
By John Kavanagh Published on Monday, 17 October, 2011 Filed under Specialist finance