Australian Banking & Finance articles from August 2002

Australian Banking & Finance archives from August 2002

Westpac targets the rich.(Westpac Banking Corp. increases wealth management services)(Brief Article)
August 16, 2002... WESTPAC BANKING CORP IS preparing to boost its focus on wealthy investors at a time when a major report shows wealth management and private banking institutions have failed to focus sufficiently on their most valuable customers. Westpac...

GE commercial eyes areas banks neglect.(services offered by GE Commercial Finance)(Brief Article)
August 16, 2002... GE COMMERCIAL IS TRIALLING a brand awareness program in New Zealand before formulating its strategy to attack the Australian market following its acquisition of AGC from Westpac. GE Commercial vice president of marketing and head of...

Problems ahead with Basel laws. (Current Account).(law regarding reporting of capital held by financial institutions)(Brief Article)
August 16, 2002... MOST FINANCIAL INSTITUTIONS will find complying with Basel 11 regulations difficult due to a number of factors--primarily the availability and organisation of the myriad data necessary for an internal ratings-based approach to calculating...

Banking world. (Current Account).
August 16, 2002... [ILLUSTRATION OMITTED] Caption: Representatives from JP Norgan Chase, Donald NcCree, managing director, Robert Traband, vice president, and Jeffrey Dellapina, are sworn in before the Senate Government Affairs committee at a hearing on the...

Amex trebles profit in quarter. (Current Account).(American Express Co. earnings report)
August 16, 2002... QUARTERLY PROFITS AT AMERICAN Express Co more than tripled from a year ago, when it took a big charge for junk-bond losses, as consumers built up debt and it benefited from cost cuts. The New York-based financial. services company earned...

Westpac targets single digit growth. (Current Account).(Westpac Banking Corp.)(Brief Article)
August 16, 2002... WESTPAC BANKING CORP SAYS IT is targeting revenue growth of seven per cent this year. Chief financial, officer Phil Chronican said the drivers of the bank's growth had not altered in the past year. "Little has changed in the sense that...

SPI options soar with volatility. (Current Account).(Sydney Futures Exchange report)(Brief Article)
August 16, 2002... TRADED VOLUMES IN SPI 200(tm) futures and options at the Sydney Futures Exchange in July 2002 grew by about 23% and 12% respectively compared to the same month in 2001, influenced by a number of development initiatives implemented over the last...

CBA claims lowest housing loan rate. (Current Account).(Commonwealth Bank)
August 16, 2002... THE COMMONWEALTH BANK HAS reduced the interest rate on its popular One Year Guaranteed Rate home loan by 0.5% to 5.29%, the lowest offered by a major tender. The move comes just two weeks after it reduced its home and investment home loan...

On the record. (Current Account).(news and notes on profits, services, and credit ratings of banks)(Brief Article)
August 16, 2002... "This primarily reflected the difficult market conditions in the UK. This is an industry-wide issue and AMP is not immune." AMP CHIEF FINANCIAL OFFICER MARC DE CURE ON THE CREDIT DOWNGRADE BY STANDARD & POOR'S. "The result reflects...

Telco bust won't hurt banks. (News).(financial condition of Australian banks)(Brief Article)
August 16, 2002... ANZ BANK'S DISCLOSURE THAT IT had a US$131 million exposure to the troubled Marconi PLC was met with deep concern in the bond and equity markets. But ratings agency Fitch has been keeping track of banks' exposures to the telco sector for...

How to impress in CEO suite. (News).(Brief Article)
August 16, 2002... HOW DO YOU BECOME A TRUSTED adviser in the CEO suites of say David Murray, David Morgan, John McFarlane or Frank Cicutto? There's no doubt many finance industry professionals who would like to know the answer to this question. The...

Finance wizards spur jobs growth. (News).
August 16, 2002... LEAVE IT TO THE FINANCIAL wizards who dream up intricate derivatives strategies to spur job growth in foreign exchange at major banks and brokerages just as job cuts now seem to be a way of life on Wall Street. While the number of jobs...

Sherry hails merger as top achievement; in the fourth of a series on the top women in financial services, Sarah Jones profiles Ann Sherry. (Top Women In Financial Services).(profile of Westpac Banking Corp. executive)(Brief Article)
August 16, 2002... ANN SHERRY LOVES HER TWO high profile jobs in the banking industry, as group executive of Westpac Banking Corporation and chief executive of The Bank of Melbourne. Sherry, a champion for women's rights in business, divides her time 50-50...

Time to complete loop in electronic bill presentment. (News).(home banking services)(Brief Article)
August 16, 2002... ELECTRONIC BILL PRESENTMENT and Payment (EBPP) is rapidly coming of age in Australia. With the launch of initiatives such as BPAY View and the support of major financial institutions that allow customers to pay bills from within their...

Customers demand multiple touch points. (News).(Celent Communications survey of bank consumers)(Brief Article)
August 16, 2002... A RECENT SURVEY OF BANKING customers found that although no single channel has monopolised consumers, 63% selected the ATM as the channel used most often for completing banking transactions. In a new report, "Channels: Which One Owns the...

Originators must guard against fraud: OTL is perhaps the big sleeping issue for many participants in the mortgage industry. (News).(originated transmitted liability (OTL))(Brief Article)
August 16, 2002... WHAT IS OTL? ORIGINATED Transmitted Liability. We all know that originators are liable for their own and their employees' negligence or fraud. Most originators insure against negligence, and put in place significant internal controls to...

Banks enjoy `quick wins' on costs. (Australian Banking Review--Special Feature).(financial conditions of Australian banking industy)
August 16, 2002... A BOOMING HOUSING SECTOR, robust personal lending markets, strong growth in non interest income and ongoing tight control of costs have been the key to strong profit growth for Australia's major banks in the first half of 2002. This...

Regional banks--courage under fire: despite a turbulent corporate climate and the downturn in the global economy in 2001, Australia's regional financial institutions achieved stolid growth in operating profit, but things may not be quite as rosy in the year ahead. KPMG's annual survey of the sector provides a detailed analysis of the past year. (Australian Banking Review--Special Feature).
August 16, 2002... THE 2001 FINANCIAL YEAR SAW A number of corporate collapses and the downturn in the global economy. Whilst the effects of these events were felt across the financial services industry the Regional Financial Institutions sector ("the Regionals")...

Westpac, ANZ develop bancassurance model; ratings agency Fitch examines some of the results, trends and key issues confronting the banking sector. (Australian Banking Review--Special Feature).(Brief Article)
August 16, 2002... ONE NOTABLE FEATURE OF THE performance of banks in recent years has been the focus on non-interest income for growth. Non-interest income has altered in size and nature over the past five years. Accounting for just under 37% of major...

Monetary milestones. (Australian Banking Review).(history of the banking industry in Australia)
August 16, 2002... 1817 -- The founding of the first Australian bank, the Bank of NSW The business of banking in various parts of Australia was carried out by private trading banks, incorporated by charter, by statute, or under the Companies Act. Some of...

Adelaide Bank. (Australian Banking Review--Special Feature).(profile of Adelaide Bank Ltd.)(Brief Article)(Statistical Data Included)
August 16, 2002... Headquarters: 90 King William St Adelaide, South Australia, 5000 Telephone: (08) 8300 6000 Adelaide Bank is South Australia's only publicly listed regional bank. Adelaide Bank achieved its bank status in January 1994 changing...

ANZ Bank. (Australian Banking Review--Special Feature).(profile of ANZ Bank Ltd.)(Brief Article)
August 16, 2002... Headquarters: level 2, 100 Queen Street, Melbourne, Victoria 3000 Telephone. (03)9562 2688 ANZ is one of Australia's leading banking and financial services groups. ANZ offers a full range of financial products and services in...

Bank of Queensland. (Australian Banking Review--Special Feature).(profile of Bank of Queensland Ltd.)(Brief Article)(Statistical Data Included)
August 16, 2002... Headquarters: 229 Elizabeth Street, Brisbane, Queensland, 4001 Telephone: (07)3212 3333 Established in 1874, Bank of Queensland [BOQ] is one of the State's leading financial institutions. Based in Brisbane, the bank operates predominantly...

BankWest. (Australian Banking Review--Special Feature).(profile of bank)(Brief Article)(Statistical Data Included)
August 16, 2002... Headquarters: Level 47, BankWest Tower 108 St Georges Terrace, Perth, Western Australia, 6000 Telephone: (08) 9449 7000 BankWest is a full service bank based in Perth, Western Australia. It is active in all market segments, and its lending...

Bendigo Bank. (Australian Banking Review--Special Feature).(profile of bank services)(Brief Article)(Statistical Data Included)
August 16, 2002... Headquarters: Fountain Court, Bendigo, Victoria, 3550 Telephone: (03) 5433 9339 Victoria's Bendigo Bank is Australia's newest bank. Bendigo, which up until June 30 1995, was Victoria's largest and Australia's second largest building...

Commonwealth Bank of Australia. (Australian Banking Review--Special Feature).(bank profile)(Brief Article)
August 16, 2002... Headquarters: 48 Martin Place Sydney, NSW, 2000 Telephone. (02) 9378 7111 The Commonwealth Bank Group, with over 9 million customers and 37,000 staff, is Australia's foremost provider of integrated financial services including retail,...

Macquarie Bank. (Australian Banking Review--Special Feature).(bank profile)(Brief Article)(Statistical Data Included)
August 16, 2002... Headquarters: 20 Bond Street Sydney, NSW, 2000 Telephone: (02) 9237 3333 Australia's Leading investment bank, Macquarie provides a full range of investment banking, commercial, banking and retail, financial services in Australia and in...

National Australia Bank. (Australian Banking Review--Special Feature).(bank profile)(Brief Article)(Statistical Data Included)
August 16, 2002... Headquarters: 500 Bourke Street, Melbourne, Victoria, 3001 Telephone. (03) 9541 3500 National Australia Bank is an international, financial services group providing a comprehensive and integrated range of financial, services across four...

St. George Bank. (Australian Banking Review--Special Feature).(profile of St. George Bank Ltd.)(Brief Article)(Statistical Data Included)
August 16, 2002... Headquarters: 4-6 Montgomery St Kogarah, NSW, 2000 Telephone: (02) 9952 1111 St George Bank's core business is retail banking, particularly the secure and beneficially risk weighted residential lending sector. The St George group now...

Suncorp Metway Ltd. (Australian Banking Review--Special Feature).(bank profile)(Brief Article)
August 16, 2002... Headquarters: 37 Wickham Terrace, Brisbane, Queensland, 4000 Telephone: (07) 3835 5355 Suncorp-Metway Ltd was formed on December 1 1996 from the merger of three of Queensland's largest financial institutions--Suncorp, Metway Bank and QIDC...

Westpac Banking Corporation. (News).(Brief Article)
August 16, 2002... Headquarters: 60 Martin Place, Sydney, NSW 2000 Telephone: (02) 9226 3311 Westpac Banking Corporation is Australia's first bank and oldest company. Established in 1817 to promote commercial, growth and to bring some order into the...

Share fall puts paid to early retirement. (News).(Brief Article)
August 16, 2002... THE DOOR IS CLOSING ON EARLY RETIREMENT. Baby boomers who are not judges, bishops, farmers and the owners of small businesses may soon join those and other occupations where many people traditionally work into their late sixties, early...

Asian bad loan figure tops $US2 trillion. (News).(Brief Article)
August 16, 2002... WITH NON-PERFORMING ASSETS topping $US2 trillion and investment capital, approaching $US100 billion, the non-performing loan (NPL) problem in Asia has become a growth industry with the potential, to shape Asia's economic landscape for years to...

Demand for bonds. (News).(Brief Article)
August 16, 2002... AUSTRALIAN CORPORATE BOND issuers Looking to sell credit--wrapped securities should also target appetite for unwrapped issues too, says National Australia Bank. Credit-wrapped bonds are guaranteed by highly rated insurers such as Ambac...

CBA launches new web site. (New Economy Banker).(Brief Article)
August 16, 2002... THE COMMONWEALTH BANK HAS launched a new website, www.dollarsandsense.com.au, to assist teenagers and young adults develop sound financial, skills at an important time in their life. The site, designed to appeal to the 14-21 year age group,...

CRM software market attached to ERM projects. (New Economy Banker).(Brief Article)
August 16, 2002... LATEST RESEARCH FROM IDC HAS noted a 46% increase in the Customer Relationship Management (CRM) software market in Australia, from US$54 million in 2000 to US$79 million in 2001. Fuelled by tie-in ratios to ERM implementations which are on...

Web-enabling branches not enough, Forrester. (New Economy Banker).(Brief Article)
August 16, 2002... BANKS WILL NOT MEET THEIR key objectives--improving customer service and reducing operating costs--by simply Web-enabling branches as they are today. To avoid throwing good money after bad, firms must aim their investment at the future...

Finance recruitment `a buyer's market'. (News).(Brief Article)
August 16, 2002... SALARIES FOR BOTH PERMANENT and contract staff within Sydney's financial services companies have remained constant over the last six months with an abundance of excellent candidates on the market, according to a bi-annual salary survey recently...

Executive suite: the head of the world's largest financial services organisation, Sandy Weill, chairman and chief executive officer of Citigroup, discusses executive stock options. (News).(Brief Article)
August 16, 2002... "I BELIEVE THAT COMPANIES should structure their incentives so that CEOs and senior managers are in it for the long-term. It is clear that excessive use of stock options can exacerbate a short-term focus and can encourage short-sighted...

Mastercard pledges superior service. (News).(Brief Article)
August 16, 2002... THE CONVERSION OF MASTERCARD International into a private share corporation and its merger with Europay International have been completed, creating a unified, shareholder-owned global payments company, which will deliver significant benefits to...

Funds conference. (People).(Brief Article)
August 16, 2002... Australian Banking and Finance newsmagazine last month hosted a funds management conference in Sydney. The event was sponsored by Axiss Australia and KPMG. Guests at the conference Rochelle Kramer (the Australian), Paul Somalin (KPMG...

Behind the screens. (News).(Brief Article)
August 16, 2002... Macquarie Bank's dynamic duo of David Clarke and Allan Moss may have reached for the whiskey bottle after a fiery AGM where shareholders, for the first time, threw bricks instead of flowers at the management team. They showed great...

Working with the rural sector. (credit union comment).(Brief Article)
August 16, 2002... CREDIT UNIONS IN AUSTRALIA have a reputation for social responsibility, setting the movement apart from other financial services. The closure of bank branches in rural and remote communities has allowed a steady increase in credit union...

Bendigo details initiatives to sustain profit growth. (News).(Brief Article)
August 30, 2002... ROB HUNT AND HIS MANAGEMENT team at Bendigo Bank are now faced with the critical task of properly handling the group's substantial growth, which has outstripped every other bank in Australia. Analysts raised this as the No 1 issue...

National, CBA tip slowdown. (News).(Brief Article)
August 30, 2002... Australia's two biggest banks, National Australia and the CBA, are hoping a pick up in business lending will offset an expected slowdown in housing loans and help them sustain earnings growth in the next year. But the CBA, at least, is not...

CUA expands through Mortgage Choice. (Current Account).(Credit Union Australia to offer home loans via Mortgage Choice)(Brief Article)
August 30, 2002... CREDIT UNION AUSTRALIA'S continuing bid to expand its market base has gained momentum with the official launch in Queensland and Victoria of CUA loan products through mortgage broker, Mortgage Choice. As the only credit union currently on...

Rock rides housing boom with $4m profit. (Current Account).(Rock Building Society data)(Brief Article)(Statistical Data Included)
August 30, 2002... THE ROCK BUILDING SOCIETY HAS delivered another solid result for shareholders with annual after-tax profit up 15% to $4.2 million, earnings per share up 26% to 25.7 cents per share, and return on shareholders equity up from 14% to 17%. A...

Banking world. (Current Account).(Barclays reported first half earnings fell more than expected )(Brief Article)
August 30, 2002... Barclays' customers withdraw cash from an ATM at a branch of Barclays in central London. Barclays reported first half earnings fell more than expected and additional jobs may be eliminated in the second half as companies struggle to reduce...

Challenger launches retirement product. (Current Account).(Challenger International)(Brief Article)
August 30, 2002... DIVERSIFIED FINANCIAL SERVICES group Challenger International has launched a retirement income solution which significantly reduces the complexity of retirement planning, while helping people stretch their retirement savings further. The...

IMB achieves fifth consecutive increase. (Current Account).(IMB Ltd. boosts assets under management)(Brief Article)
August 30, 2002... LOAN APPROVALS OF $1.2 BILLION, an increase of 49% for the year, following a 43% increase last year, has helped one of Australia's largest building societies--IMB Ltd--achieve a growth of assets under management this year of 33% to a total of...

Keycorp wins $3m terminal order. (Current Account).(from National Australia Bank)(Brief Article)
August 30, 2002... SECURE ELECTRONIC TRANSACTION solutions provider Keycorp says it has received orders from the National Australia Bank for the supply of additional K23 payment terminals, valued at more than $3 million. This is Keycorp's third sale of...

On the record.
August 30, 2002... "We're actually going through our completed customer base and testing how they stand up against our financial, stress testing." NATIONAL AUSTRALIA BANK GENERAL MANAGER OF BUSINESS BANKING PAUL CLARK ON MOVES TO SHED NON-PERFORMING AND...

Code to encourage higher standards. (News).(newly-revised Code of Banking Practice)(Brief Article)
August 30, 2002... THE BANKING INDUSTRY HAS rewritten its Code of Banking Practice--nine years after the original code was introduced--to address a vastly-changed banking industry. The chairman of the Australian Bankers' Association (ABA), David Murray, said...

Wizard wants immediate rate disclosure. (News).(Wizard Home Loans calls on mortgage lenders to immediately comply with full disclosure law that will not come into effect until 2003)(Brief Article)
August 30, 2002... THE IMPLEMENTATION OF A LANDMARK homebuyer protection law, which has been in operation in the US and UK for decades, has been delayed in Australia until. July next year. However Wizard Home Loans is calling on lenders to do the right thing...

AMP to spend up on image. (News).(AMP Ltd. hopes to expand business in U.K.)(Brief Article)
August 30, 2002... FUND MANAGER AND LIFE insurer AMP Ltd, with its stock wallowing near historic lows, has launched an international, marketing campaign to push itself as a financial services brand in the UK. The campaign--with a cast list including athletes...

Simple approach underpins longevity. (News).(Adelaide Bank's CEO has been in his position for 17 years)(Brief Article)
August 30, 2002... ADELAIDE BANK CHIEF EXECUTIVE Barry Fitzpatrick holds the record as being the longest serving chief executive in Australia. Fitzpatrick was appointed chief executive to the then Co-operative Building Society in 1985 and said he was just...

Suncorp rolls out bank services via GIO branches. (News).(Brief Article)
August 30, 2002... FRESH FROM ITS $1.4 BILLION acquisition of GIO last June, Queensland allfinanz group Suncorp is rolling out its banking services through the GIO branch network in NSW. On July 22, the GIO branch in Henry Street Penrith was rebadged Suncorp...

Singapore to build new hub for banks, brokerages. (News).(Brief Article)
August 30, 2002... SINGAPORE IS PUSHING AHEAD with an ambitious plan to build a new hub for banks, brokerages and other businesses despite a glut in the office market and a downturn in the financial sector. National Development Minister Mah Bow Tan said the...

Derivatives simplify credit portfolios. (News).(Brief Article)
August 30, 2002... SOME ESTIMATES OF THE CREDIT derivative market, in terms of value of notional contracts outstanding, is in excess of US$2 trillion. From a standing start some six or seven years ago this is indeed impressive performance. Credit...

Sparks fly when customers and technology collide. (the bank account).(banking, technology and customer service)
August 30, 2002... THERE IS LITTLE DOUBT THAT the solutions promised by technology are rarely as straightforward as the propeller heads would have us believe. The friction appears to be generated by customer's glacier-speed preferences adapting to crude...

The importance of being aware of mortgage fraud. (Special Report--Mortgage Fraud).
August 30, 2002... Although most people don't associate applying for a mortgage with committing a crime, mortgage fraud is more common than one would think. It is nothing new, but sophisticated technology has increased the ease of perpetrating such fraud. It...

Suncorp Metway moves gainst industry trend. (Special Feature--Outsourcing).(Suncorp-Metway Ltd., outsourcing)
August 30, 2002... Earlier this month Queensland's biggest employer Suncorp Metway completed one of the biggest insourcing projects in Australia's corporate history, claiming to have saved $120 million by bringing newly acquired GIO's IT operations in house. ...

Outsourcing your business DNA: document processes. (Special Feature--Outsourcing).(Brief Article)(Statistical Data Included)
August 30, 2002... STUDIES FROM XEROX IN AMERICA and Europe show that an organisation of 1000 employees will generate a total cost of office document printing of nearly US$1 million. But savings of 20 to 40 per cent can be achieved through the implementation...

Returns outstrip initial outlays. (News).(financial institutions, management)(Brief Article)
August 30, 2002... THE GLOBAL ECONOMY IN general continues to remain relatively flat increasing the pressure on company directors and their deputies to find new ways to stay ahead of their competitors in order to ensure they continue to keep their shareholders...

Institutions prefer partnerships based on risk and rewards. (News).(outsourcing)(Brief Article)
August 30, 2002... ORGANISATIONS IN THE financial services sector often do not understand where the responsibility and rewards of IT outsourcing contracts tie. IT professionals want business units to take more ownership and accept more responsibility for...

Identify the best customers and their likely value to you. (examining the customer).(Brief Article)
August 30, 2002... "YEARS AGO MY FATHER GAVE ME a spanner, but..." There has been much talk in recent times about the need for financial, institutions to "have a relationship" with their customers. That it contributes to over 50% of bottom line profit...

Datamonitor's Asia-Pacific insight. (News).(financial services, China)(Brief Article)
August 30, 2002... Many financial, services firms are holding onto their investment dollars and not currently targeting the Chinese financial. services market. But while they may think they're being prudent, these companies are actually in danger of watching...

Leading insurer warns of risks to Asian economies. (News).(cost of insurance after September 11 attacks)(Brief Article)
August 30, 2002... THE HARDENING OF INSURANCE cost and availability following the September 11 terrorist attacks on the US poses a major threat to the development of Asian economies, according to one of the world's top insurers. Sy Sternberg, chairman and...

Customer velocity--moving faster in all directions. (the Nielsen/netRatings report).(online banking industry)(Brief Article)(Statistical Data Included)
August 30, 2002... WITH THE ONLINE BANKING AND Finance Index (BFI) growing just 2.4 percent between June and July this year, and the sector's MSP ratio now as high as 1.9 (meaning the average online user accesses at least 1.9 banking groups in any given month),...

Managing profit for business survival. (New Economy Banker).(financial services industry)(Brief Article)
August 30, 2002... THE FINANCIAL SERVICES industry (FSI) needs to its surroundings and prepare for long term survival by managing profitability. To survive a storm, you need to prepare for the storm. The demand on financial services executives has changed....

Keycorp secures terminal contract. (New Economy Banker).(KeyCorp., Cardex)(Brief Article)
August 30, 2002... SECURE ELECTRONIC transaction solutions provider Keycorp has received orders from Canada-based Cardex for 1,000 K26 and K79 fixed line electronic payment terminals and PIN pads. The initial order is part of an ongoing agreement with Cardex...

Behind the screens. (News).(David Murray of Australian Bankers Association)(Brief Article)
August 30, 2002... The chairman of the Australian Bankers Association David Murray is not too tolerant of cynics. Asked by one pressman at the launch of the banking industry's new generation Code of Banking Conduct whether the measures announced were merely a...

Snooze, you lose. (News).(Refco Group Ltd., two employees fired)(Brief Article)
August 30, 2002... CHICAGO: (REUTERS) -- TWO clerks for a big Chicago futures trading firm found out the hard way that if you snooze, you lose--your job. The two clerks for Refco Group were fired after a colour photograph of them sleeping at their desks just...