Please note that as of August 2012, The Bank Investor site is no longer being updated. Australia and New Zealand's best analysis of the banking and finance industry can be found at Banking Day.

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NAB takes the bad bank option in UK

National Australia Bank provided a rush version of its March 2012 half year profit this morning to provide context to the long-awaited decision on how to restructure its troubled banking business in Britain. NAB said that cash earnings for the March 2012 half year were A$2.82 billion. This is ... More
By Ian Rogers Published on Monday, 30 April, 2012 Filed under NAB, results

Small caps: Easier payday lending restrictions a boost to short-term lenders

Short-term lenders received a fillip last week, when the Minister for Financial Services, Bill Shorten, released a revised draft of proposed payday lending regulation. The revised draft eases planned restrictions on high-cost, short-term finance contracts. When the first draft of the Consumer ... More
By John Kavanagh Published on Monday, 30 April, 2012 Filed under small institutions

Macquarie Group faithful to its model

Macquarie Group is taking a long-term view of the earnings prospects for its capital markets' businesses, based mainly on the calibre of the managers charged with securing the turnaround of divisions that are either making losses or doing no better than break-even. The group reported a profit of ... More
By Ian Rogers and John Kavanagh Published on Monday, 30 April, 2012 Filed under Macquarie Group, results

What the analysts are saying: Macquarie Group on Hold

Macquarie Group's planned A$500 million share buyback and other capital management initiatives might spark some interest in the company's stock, but not enough to encourage sell-side analysts to recommend investors buy it. In their commentaries on Macquarie's 2011/12 results, announced on Friday, ... More
By John Kavanagh Published on Monday, 30 April, 2012 Filed under Macquarie Group, analysts

Commonwealth Bank keeps its focus on the local market

Commonwealth Bank chief executive Ian Narev has committed the bank to pursuing its growth strategy "in Australia primarily" over the next few years. Narev believes the bank's key capabilities are best deployed meeting the needs of customers in its core franchises – the domestic retail and small ... More
By John Kavanagh,Beverley Head and Ian Rogers Published on Monday, 23 April, 2012 Filed under Commonwealth, outlook

Analyst consensus leaves Commonwealth Bank on Hold

The strategy briefing presented by Commonwealth Bank chief executive Ian Narev last week will do nothing to move the bank's stock price, if analysts' reviews of the briefing are a reliable guide. Of the nine analyst commentaries sighted by The Bank Investor, only one was an upgrade. UBS changed ... More
By John Kavanagh Published on Monday, 23 April, 2012 Filed under CBA, analysts, outlook

Bank of Queensland prepared to lose margin in return for deposit growth

Bank of Queensland will offer a pricing premium of around 10 basis points on term deposits in order to maintain above-system growth in its deposit book and attain its target retail funding level of 63 per cent. The bank yesterday provided a fresh view of the composition of its funding in a ... More
By Ian Rogers Published on Monday, 23 April, 2012 Filed under BOQ, results

Commonwealth Bank downgraded ahead of strategy presentation

Commonwealth Bank chief executive Ian Narev will this week present his first strategy briefing since taking on the top job at the bank last year. Analysts are looking for a tougher approach to costs, a bigger push into business areas where the bank presently has a small presence now (such as ... More
By John Kavanagh Published on Monday, 16 April, 2012 Filed under CBA, outlook

Banking system must meet capital shortfall

The banking industry worldwide needs to set aside the equivalent of 15 months' profit to meet target capital requirements under the Basel III regime, a new study from the Bank for International Settlements shows. The BIS reviewed data from 212 of the world's most active banks and is based on data ... More
By Ian Rogers Published on Monday, 16 April, 2012 Filed under prudential

Small caps: Wide Bay Australia to wind down unprofitable insurance arm

Listed building society Wide Bay Australia is to wind down its captive mortgage insurance business and source all its insurance from external providers. The Bundaberg-based building society disclosed the plan in an investor presentation lodged with the ASX last week. It said the move would ... More
By Ian Rogers Published on Monday, 16 April, 2012 Filed under small institutions

ANZ bearish on local outlook, focuses on China

ANZ has issued a reminder to investors that returns will be lower and growth slower in the future as higher capital ratios and the increased cost of funds drag on bank profits. Phil Chronican, ANZ's chief executive for Australia, told a business lunch last week that "banking is going to be more ... More
By Ian Rogers and Joyce Huang Published on Tuesday, 10 April, 2012 Filed under ANZ, outlook

Small caps: Bidder DirectCash prices Customers Ltd at NTA

The ATM fleet aggregated by Customers Limited over the last eleven years will change hands for a fourth time if an offer from Canadian firm DirectCash valued at A$182 million receives support from shareholders. Talk of a takeover bid for Customers had circulated for many months. Other interested ... More
By Ian Rogers Published on Tuesday, 10 April, 2012 Filed under Customers Limited