All Posts Tagged With: "CBA"

Big Four downgraded

By Jill Fraser

What are the implications of credit ratings agency Moody’s downgrading of Westpac, the CBA, ANZ and NAB from Aa1 to Aa2, the first major downgrade in the banking sector in over a decade?

Only a month ago Fitch Ratings affirmed the ratings of the Big Four and on Wednesday Fitch research noted that the mortgage loan books of the big four banks were strong.

What does this downgrade, which triggered a fall in the share prices of the four banks, say about the highly respected Australian banking system and most significantly what affect will it have on borrowers?

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Small business forgoing growth opportunities

By Trevor Chappell

Small businesses may be foregoing growth opportunities because they are tied down in run-of-the-mill activities such as inventory management and banking, says the Commonwealth Bank.

About 73 per cent per cent of small businesses surveyed wanted to spend more time pursuing growth opportunities, according to the bank’s Better Business survey conducted in March.

But almost half said day-to-day functions were taking up most of their time.

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CBA modernisation to give it edge

By David McIntyre

Commonwealth Bank of Australia Ltd says its core banking modernisation program, which is about half complete, will give it a competitive edge in years to come.

Australia’s biggest lender says none of its rivals have even started similar processes, which will allow faster transaction processing and for customers to see that in real time over the internet.

"The program is already delivering benefits for the bank and its customers," chief executive Ralph Norris said in a presentation on Monday.

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CBA to NAB – breaking up is hard to do

By Alison Bell

National Australia Bank’s "Dear John" letter to its rivals prompted a dismissive retort from ANZ’s boss, but the Commonwealth Bank wants NAB to know breaking up is hard to do.

ANZ Banking Group chief executive Mike Smith says NAB’s current retail banking campaign to differentiate itself from its three big rivals is of no concern.

"We have continued to grow market share," Mr Smith told analysts on Friday after ANZ posted a $1.4 billion unaudited December quarter underlying profit, 27 per cent better than the previous corresponding quarter.

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Swan welcomes banks "break-up"

By Gabrielle Dunlevy

Federal Treasurer Wayne Swan has welcomed a "scrap" among the big four banks, saying it is a result of his government’s moves to increase competition in the sector.

The National Australia Bank (NAB) on Tuesday took out national newspaper advertisements addressed to its rivals – the Commonwealth, ANZ and Westpac – saying "it’s over between us".

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Investors watching for CBA, revenue growth

By David McIntyre

Investors will want to see how Commonwealth Bank of Australia Ltd (CBA) and the other major banks will grow revenue in a slowing housing market amid cautious consumer sentiment.

Bank profits rebounded last financial year for CBA and the other banks on declining bad debts, which increased during the global financial crisis, and as they increased market share in mortgages and deposits.

The bad debts have now mostly washed through the system and the major banks are now starting to lose market share to smaller lenders and deposit-takers.
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Bank helps out Queensland insurance customers

The Commonwealth Bank has set up a $50 million fund it says will help hundreds of its home insurance customers affected by recent floods.

The announcement follows calls for compassion after many home owners discovered their insurance policy did not cover them for flooding from a river but only a flash flood or flooding resulting from a storm.

Commonwealth Bank chief executive officer Ralph Norris and Premier Anna Bligh jointly announced the fund on Sunday morning.
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Will the CBA’s rate rise affect its brand?

By Jill Fraser for Lending Central

Treasurer Wayne Swan referred to the Commonwealth Bank’s variable home loan hike as a “cynical cash grab”, Prime Minister Julia Gillard expressed her “anger” at the 45 basis point rise and 2UE broadcaster Alan Jones’ scathing attack on chief executive, Ralph Norris’s record $16 million pay package, which Jones referred to as “just another slap in the face for the little people”, has resulted in the bank pulling the pin on a planned Christmas party.

But the country’s largest home lender can breathe easily regarding its brand.
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Brokers being treated like slave labour!

By Jill Fraser for Lending Central

The former CEO of the Australian Institute of Professional Brokers, Maria Rigoni tabled her resignation after becoming frustrated with the industry body’s conservative stance and lack of pro-activity.

Making waves is Rigoni raison d’etre and while many disagree with her “go sic ‘em” attitude and outspoken comments (her list of adversaries are notable), her David versus Goliath approach is consistently newsworthy.

The issue currently in her sights is “out-sourced lending tasks”.
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CBA prove most popular Lender during October despite current backlash

In the first Stargate Product Popularity Index (PPI) survey conducted with Brokers, Commonwealth Bank’s Rate Saver home loan has proven the most popular product with Brokers during October.

A survey of 1500 Brokers reveals that the CBA Rate Saver product is almost 3 times more popular than its nearest rival product from NAB Homeside.

Over 14% of all loans written by respondents went to the CBA Rate Saver product, which shows that the product is hitting the right nerve with both Brokers and Consumers.
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CBA justifies rate rise

By Jill Fraser for Lending Central

On its website the CBA blames its rate hike on the rising costs of international borrowing:

“We have announced changes to interest rates on a range of deposit and variable rate home loan accounts, reflecting recent increases in market interest rates and the cost of retail deposits and wholesale funding. The new interest rates will automatically be applied to your account on Friday, 5th November 2010,” the website states.

The CBA’s head of retail banking, Ross McEwan, told the ABC’s PM program last night that the increased cost of banking has forced the bank’s hand.
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Lender brand attitudes in flux

An office worker walks next to a National Australia Bank (NAB) branch in central Sydney August 5, 2010. NAB, which is trying to win regulatory approval for an $11.5 billion takeover of AXA Asia Pacific, said it remains in talks with the competition regulator. REUTERS/Daniel Munoz (AUSTRALIA - Tags: BUSINESS)

By Jill Fraser for Lending Central

Brand image and customer satisfaction are ongoing issues for providers according to market analyst Datamonitor.

Several major brand realignments are currently taking place.

In Datamonitor’s 2010 Australian Financial Services survey, respondents were asked to name what they considered to be their main financial institution (MFI), and to rate this institution on a number of attributes, with a scale ranging from “very strong” to “very weak”.

Each major institution has its own strengths and weaknesses when it comes to brand image.
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CBA CEO year pay rises 75% to $16.2m

Commonwealth Bank of Australia Ltd chief executive Ralph Norris saw his total pay package balloon by 75 per cent last financial year to $16.2 million, as the bank’s net profit grew by 20 per cent to $5.66 billion.

Long-term incentive (LTI) payments mainly account for the significant rise, with $9.2 million in share payments almost triple the amount awarded to him in the previous year.

LTIs account for 57 per cent of Mr Norris’ total remuneration and include awards for the 2008, 2009 and 2010 financial years.
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Storm class lawyers attack CBA boss

A law firm says comments by the Commonwealth Bank of Australia (CBA) that the firm declined to accept test cases put forward to help settle a class action brought by Storm Financial victims are false and pressure clients to settle on the cheap.

The law firm Levitt Robinson commenced a class action on July 1 on behalf of about 300 clients unhappy with a deal to settle claims under a resolution scheme that was created by CBA in June 2009 with plaintiff lawyers Slater & Gordon.

Storm Financial victims lost money when the Townsville-based financial services firm collapsed in 2008 at the height of the global financial crisis, owing millions of dollars to investors.
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CBA lifts SVR, deposit rates by 25bps, matching RBA move

Commonwealth Bank of Australia (CBA) became the first major Australian bank to pass on the Reserve Bank of Australia’s (RBA) interest rate rise to borrowers, lifting its standard variable rate (SVR) on mortgages by 25 basis points to 7.11 per cent.

CBA said it will also raise the interest rate applying to its NetBank Saver deposit account and Business Online Saver accounts by 25 basis points.

All changes are effective from April 9 and reflect recent increases in market interest rates and wholesale funding costs, CBA said in a statement.

Other banks said their rates were under review.
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