Australian Banking & Finance articles from November 2003

Australian Banking & Finance archives from November 2003

Kelly delivers record.(profit)(Brief Article)
November 19, 2003... ST GEORGE CEO GAIL KELLY (pictured above) this month won further praise from the banking industry by delivering a record profit after tax of $606 million for the year ended September. This was up 20% from the 2002 result of $505 million...

NBFIs reap rewards from diversification.
November 19, 2003... BUILDING SOCIETIES AND CREDIT unions recorded strong results on the back of the housing boom in the 2002-2003 financial year--but they'll have to battle a fair bit harder to sustain the growth in the next year, regardless of rising interest...

BankWest launches new financial planner.(Current Account)(Brief Article)
November 19, 2003... BANKWEST HAS LAUNCHED A new financial planning company, BWA Financial Services, to initially target the West Australian market with a broad wealth management offering for customers with both simple and more complex financial planning needs. ...

Suncorp chairman has confidence in future.(Current Account)(Brief Article)
November 19, 2003... SUNCORP HAS HAD A STRONG start to the current financial year and has reconfirmed the company's forecast of a solid improvement in underlying annual profit. Addressing the annual general meeting chairman John Story said conditions in...

Mortgage House set for big interstate expansion.(Current Account)(Brief Article)
November 19, 2003... ONE OF AUSTRALIA'S FASTEST growing tenders Mortgage House has opened five new branches in NSW to take the total to 20 statewide. According to Mortgage House managing director Ken Sayer the new branches are the beginning of an expansion...

Banking world.(Current Account)(Brief Article)
November 19, 2003... [ILLUSTRATION OMITTED] Caption: Bank One CEO Jamie Dimon, left-right, Starbucks chairman Howard Schultzcand Visa USA Inc CEO Carl Pascarella, introduce the Starbucks Card Duetto Visa at Starbucks in New York. The coffee-shop chain plans to...

CBA brings Flight Centre into scheme.(Current Account)(Brief Article)
November 19, 2003... COMMONWEALTH BANK HAS brought in Flight Centre as a partner in its credit card rewards programs. As a result of the partnership, Commonwealth Awards credit card holders using Flight Centre can accrue points faster. Flight Centre allows...

On the record.(Current Account)(Brief Article)
November 19, 2003... "The easy thing to do in M&A is to write the cheque. We will continue to be patient and disciplined." WESTPAC CEO DAVID MORGAN ON ACQUISITIONS. "We have bought the best bank in New Zealand at a very good price. It's been growing very...

Cashcard more than doubles profit.(Current Account)(Brief Article)
November 19, 2003... CASHCARD, AUSTRALIA'S LEADING independent payments services provider achieved a 106% increase in profit to $4.4 million for the year to June 30--its 10th year of operation. Total assets increased by $120 million due to a range of strategic...

Morgan claims success with BT.(News)
November 19, 2003... WESTPAC CEO DAVID MORGAN, fresh from announcing a $2.2 billion annual profit for 2002-03, has cast aside doubts over the acquisition and integration of the BT funds management business. Morgan says the bank is ahead of schedule in terms of...

Heritage chairman claims governance debate flawed; the chairman of Queensland's Heritage Building Society has warned the current debate over corporate governance is in danger of becoming unbalanced and lacking in common sense.(News)
November 19, 2003... Brian Carter supports the idea of appropriate corporate regulation and of applying pressure to beards and directors with improper ethical and professional standards. However he said: "Do we want a scenario where boards are not prepared to...

Banks invest more in IT to gain competitive advantage.(News)
November 19, 2003... BANK TECHNOLOGY INVESTMENTS are trending away from short-term cost reduction toward more strategic investments aimed at increasing returns. A new survey report by the American Bankers Association and TowerGroup found that US banks will...

Card protection service.(News)
November 19, 2003... NEVER BEFORE HAS THE PHRASE "your life in your wallet" or "your life in your handbag" been so true. Credit card transactions totalled $9.2 billion in January 2003, which is 15.4% higher than in January 2001, as reported by The Reserve Bank...

Policy not practice in business banking.(research revelations)
November 19, 2003... INSTITUTIONS HAVE RECOGNISED the strategic importance of business banking to drive continued business growth in the next few years. In the last six to 12 months there have been plenty of corporate strategy statements that acknowledge the...

Amex home package attracts 'high end'.(News)(Brief Article)
November 19, 2003... AMERICAN EXPRESS SAYS THE response rate for its new membership home loans has not only exceeded expectations but also the average home loan size is almost double the Australian average. "The Membership Home Loan Package is certainly...

Mortgage brokers face challenges in a regulated environment; in an era where the mortgage broking industry is under increasing scrutiny from regulators, consumer groups and the media, the sustainability of certain broker models will be tested particularly when regulation will demand new levels of compliance.(News)
November 19, 2003... For mortgage broking to grow in Australia to the levels of acceptance seen in the US and UK, consumers need to trust the broker to provide independent advice. Therefore, formalised training, high ethics and professionalism must become core...

ANZ hopeful of limiting change after NBNZ buy.(News)
November 19, 2003... THE MARKET HAS GENERALLY welcomed ANZ Bank's $5.4 billion acquisition of New Zealand's biggest bank, NBNZ, from Britain's Lloyds TSB Group Plc. The purchase doubles ANZ's market share to a third of the total New Zealand market. It...

China the big story, RBA boss.(News)(Brief Article)
November 19, 2003... PEOPLE HAVE LOST SIGHT OF THE importance of Asia to Australia's economic future, according to the governor of the Reserve Bank Ian Macfarlane. It will be different in the future in that China will assume an increasingly important role,...

Economic growth improves in US and Asia.(World Financial Services Conference)(Brief Article)
November 19, 2003... ECONOMIC GROWTH HAS picked up in the US, Japan and Asia, though there is little sign of a recovery in Europe, says Malcolm Edey, assistant governor of economics at the Reserve Bank of Australia. "The recent economic data have been...

Australia-Asia Pacific's most dynamic financial services hub.(World Financial Services Conference)
November 19, 2003... THE 'F' WORD HAS BEEN HEARD A lot in Australia during Rugby World Cup 2003. Not just 'F' for football but also for financial services. Australia is already acknowledged as a centre for sporting excellence. Now its position as the...

Themes and keynote speakers.(World Financial Services Conference)
November 19, 2003... The World Financial Services Conference held in Sydney on November 19 addresses some of the most critical issues facing the sector and features speeches by the Prime Minister John Howard and some of the key players in the industry. Areas...

Axiss leads finance mission to China; a delegation of Australian finance education and training providers visited China and South Korea this month to showcase Australian education excellence in two of the world's fastest growing economies where demand for financial services expertise is rapidly rising.(News)
November 19, 2003... The mission was led by Axiss Australia, the Government agency that promotes Australia as a financial services centre, and included members of the Australian Financial Services Training Alliance (The Alliance), a coalition of organisations...

2004 features list.(News)
November 19, 2003... 2004 FEATURES LIST Booking Material Issue Cover Date Deadline Deadline 1 30 January^ 19 January 20 January 2 13 February 3 February 4 February 3 27...

Fire levy heading for scrap heap; the insurance industry's long running campaign to scrap the fire services levy (FSL) appears to be paying dividends in NSW, with the chairman of the Public Accounts Committee charged with reviewing the funding saying he recognises changes need to be made.(Australian Insurer)
November 19, 2003... THE ANTIQUATED SYSTEM FOR charging a levy on the insurance of householders and businesses to fund the fire service has long been criticised for being unfair as only those that take out insurance pay for a service used by all. "We know what...

AMP plans to retain reinsurance group.(Australian Insurer)(Brief Article)
November 19, 2003... AMP HAS DECIDED TO RETAIN its reinsurance business Cobalt/ Gordian following its failure to find a suitable buyer. Chief executive officer Andrew Mohl said AMP had determined it was in the best interest of shareholders to retain the...

Liability premiums to continue upwards.(Australian Insurer)
November 19, 2003... IN MANY CASES THE COST OF directors and officers (D&O) liability insurance premiums has more than doubled in the last two years with major player QBE predicting they will continue to head north for some time yet. QBE's general manager of...

Swann Insurance chief concentrates on service.(Australian Insurer)(Company Profile)
November 19, 2003... DUNCAN BRAIN, MANAGER OF Swann Insurance, emphasises the word "focus" when asked about the performance of the niche insurer in the past two years. His principal message is that Swann has maintained its focus despite ownership and...

IAG on weather watch.(Australian Insurer)(Brief Article)
November 19, 2003... INSURANCE AUSTRALIA GROUP (IAG) chief executive officer Michael Hawker, said the group was tracking ahead of operating targets for the first three months of the 2004 financial year due mainly to unusually benign weather conditions. At the...

Contact centres critical.(Special report: CRM)
November 19, 2003... HAS THERE BEEN A SHIFT IN THE perception of contact centres within banking and finance institutions in recent years? Absolutely, the use of contact centres initially grew out of the need to reduce the costs of servicing customers. These...

Keeping customers, creating wealth: it's a frequently quoted statistic that 80% of a bank's revenue comes from 20% of its customers. However gone are the days when customers relied on a single supplier or individual to manage their wealth.(Special report: CRM)
November 19, 2003... TODAY THEY EXPECT TO BE MORE involved and they make the effort to become better informed than in the past. Shopping around gets them a better deal, and the Internet is invaluable for this. All these factors have created a more...

Behind the screens.(News)
November 19, 2003... Local bankers are privately expressing concern about Reserve Bank Governor Ian Macfarlane's tireless focus on the housing market and whether it is going to bust. They say he should be balancing his remarks to overseas investors in particular by...

CBA loans top $100 billion.(News)
November 19, 2003... THE COMMONWEALTH BANK this month became the first local bank to pass $100 billion in home loan balances. Group executive, retail banking services Hugh Harley said this milestone reflected the Commonwealth's determination to have a flexible...

Finance leaders fear impact of ageing population.
November 28, 2003... Two of the leading CEOs in Australia's financial services sector, CBA's David Murray and Michael Hawker from lAG, have called for urgent action to address the impact of our ageing population on the nation's economic growth rate. Murray...

Virgins slams local banks.(Virgin Money Group chief visited sydney)
November 28, 2003... THE CHIEF EXECUTIVE OF THE Virgin Money Group in the UK, Paul Pester, visited Sydney this month and swiftly took aim at Australian financial institutions and regulators. He claimed the local playing field disadvantaged new entrants,...

Suncorp appoints US asset consultant.(Current Account)(Brief Article)
November 28, 2003... SUNCORP INVESTMENT MANAGEment has appointed US-based asset consultancy Rocaton Investment Advisers to help handpick the world's best global funds managers for its world equities trust. Suncorp's manager, world equities Rob Wood said as part...

ING Direct launches mortgage product.(Current Account)(Brief Article)
November 28, 2003... ING DIRECT HAS LAUNCHED A direct mortgage product. ING Direct's new Mortgage Simplifier is an uncomplicated and hassle-free home loan with a low-priced variable rate and flexible product features. In line with the Savings Maximiserns...

Banking world.(Current Account)(Standard Bank Group)(Brief Article)
November 28, 2003... A woman, carrying a child on her back, withdraws money from a Standard Bank ATM in Dobsonville, Soweto township. Standard Bank Group, South Africa's No 1 lender, Old Mutual Plc, the largest insurer, and domestic competitors may agree to sell as...

Blunn appointed to monitor compliance.(Current Account)(chairman of the Code Compliance Monitoring Committee (CCMC))(Brief Article)
November 28, 2003... TONY BLUNN, AO, IS TO BE appointed chairman of the independent Code Compliance Monitoring Committee (CCMC) for monitoring banks' compliance with the Code of Banking Practice. The appointment is a joint decision of the AustraLian Bankers'...

On the record.(Current Account)(official quotes)(Brief Article)
November 28, 2003... "You should never offer a service for free, but you should never increase the price without offering a better service." IAG CHIEF EXECUTIVE MICHAEL HAWKER. "We are now starting to come to the attention of financial communities around...

Optus supports 2004 awards.(Australian Banking & Finance newsmagazine Awards)(Brief Article)
November 28, 2003... OPTUS IS CONTINUING ITS SPONSORSHIP OF the premier event on the Australian finance catendar, the 14th annual 2004 Australian Banking & Finance newsmagazine Awards. The Awards, which feature 12 categories, will be held in May next year. ...

Corporate treasurers still uncertain about electronic platforms.(News)
November 28, 2003... WHILE THE USE OF TECHNOLOGY by Australian corporate treasuries is on the increase, as the internet becomes the vehicle used to assist treasurers achieve greater integration of systems, it is still in its infancy, according to the 2003 Treasury...

Credit derivatives worry top international bankers.(News)
November 28, 2003... COMPLEX FINANCIAL INSTRUments, and in particular credit derivatives, represent the single biggest risk rating banks over the next two to three years, according to Banana Skins, an annual survey of top international bankers, regulators and...

Free trade agreement delayed.(News)(World Financial Services Conference )(Brief Article)
November 28, 2003... PRIME MINISTER JOHN HOWARD (right) suggested that a free trade agreement between Australia and the United States may not be signed as soon as first thought. Howard told Australian Banking & Finance newsmagazine's World Financial Services...

Small business happy with bank relationship.(News)
November 28, 2003... THE VAST MAJORITY OF SMALL businesses are happy with their bank, according to a national survey, but they are happier with their credit union. Adelaide-based Cashflow Manager Pty Ltd, one of Australia's leading developers of bookkeeping...

CLS opportunites grow.(News)(CLS Bank)
November 28, 2003... CONTINUOUS LINKED SETTLEment (CLS), the market mechanism that enables both ends of an FX transaction to be settled simultaneously, is continuing to grow in importance following the commencement of the CLS Bank about 18 months ago. The 70...

Co-brand programs to flourish.(News)
November 28, 2003... JUXTAPOSED AGAINST THE increasing sophistication of consumers and businesses in the region, the maturing credit and debit marketstin Asia/Pacific have created an environment ripe for well-positioned, innovative co-brand card programs, according...

Cost management systems.(News)(Brief Article)
November 28, 2003... WHEN IS IT TIME FOR A NEW cost management system? If you have experienced one of these scenarios, you are probably ready for a new cost system: * A proliferation of products and services has added to the complexity of work and...

Asian card losses.(News)(Cards & Payments Asia-Pacific 2003 conference reports)(Brief Article)
November 28, 2003... A WAKE-UP CALL FOR ASIA'S BANKing industry was delivered at the Cards & Payments Asia-Pacific 2003 conference and expo in Bangkok recently. The industry was told that while Asian economies are becoming more sophisticated and...

Bankers undervalue payments processing.(News)
November 28, 2003... WHILE THE PAYMENTS PROCESSing arena remains a vital strategic asset for financial institutions, most bankers today drastically undervalue its worth and relegate it to the role of an expensive but necessary cost centre. TowerGroup's "2004...

Super funds lagging in net offers.(News)(KPMG Public Offer Superannuation Fund Internet Survey report)(Brief Article)
November 28, 2003... WITH A FEW EXCEPTIONS, MOST retail, public offer super funds were found to be lagging behind their corporate and industry fund counterparts in their internet service offerings to members, a KPMG survey has found. This was in spite of their...

Housing boom drives bank profits: another record breaking year for the four Australian major banks has been confirmed, but making ground in the next 12 months may net be as straightforward, reports PricewaterhouseCoopers banking and capital markets leader Michael Codling.(Special Feature--2003 Australian Banking Review)
November 28, 2003... UNDERLYING PROFITS (CASH earnings before significant items) of the four major banks were up 6.6% on last year, and 5.9% on the prior half. This year's results were in fact very clean, with none of the majors recording any 'significant items...

Regionals boost returns, but big challenges ahead.(Special Feature--2003 Australian Banking Review)
November 28, 2003... THE STRONG INTERIM PROFIT performance of Australia's regional bank sector has been clearly underpinned by Australia's booming housing sector, which has historically and traditionally been the cornerstone of regional bank franchises, according...

CEO overview.(Special Feature--2003 Australian Banking Review)
November 28, 2003... Frank Cicutto, managing director and CEO, National Australia Group: "The outlook for the Australian and New Zealand economies remains healthy and there are signs of improving global economic activity. In Australia, our business surveys...

Monetary milestones.(Special Feature--2003 Australian Banking Review)
November 28, 2003... 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 these...

Adelaide Bank.(Special Feature--2003 Australian Banking Review)
November 28, 2003... ADELAIDE BANK Headquarters: 90 King William St, Adelaide, South Australia, 5000 Telephone: [08] 8300 6000 Adelaide Bank is one of Australia's newer regional banks and is also one of the nation's fastest growing. Formed in...

ANZ Bank.(Special Feature--2003 Australian Banking Review)
November 28, 2003... ANZ BANK Headquarters: Level 2, 100 Queen Street, Melbourne, Victoria 3000 Telephone: [03]9662 2688 ANZ is one of Australia's Leading banking and financial services groups. ANZ offers a full range of financial products...

Bank of Queensland.(Special Feature--2003 Australian Banking Review)
November 28, 2003... BANK OF QUEENSLAND 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...

BankWest.(Special Feature--2003 Australian Banking Review)
November 28, 2003... BANKWEST 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...

Bendigo Bank.(Special Feature--2003 Australian Banking Review)
November 28, 2003... BENDIGO BANK Headquarters: Fountain Court, Bendigo, Victoria, 3550 Telephone: (03) 5433 9339 Bendigo Bank was established on 1 July 1995, when Bendigo Building Society (established 1858) was converted to a bank. Bendigo's...

Commonwealth Bank of Australia.(Special Feature--2003 Australian Banking Review)
November 28, 2003... COMMONWEALTH BANK OF AUSTRALIA Headquarters: 48 Martin Place, Sydney, NSW, 2000 TeLephone: (02) 9378 7111 The Commonwealth Bank is one of Australia's leading providers of integrated financial services including retail,...

National Australia Bank.(Special Feature--2003 Australia Banking Review)
November 28, 2003... NATIONAL AUSTRALIA BANK Headquarters: 500 Bourke Street, Melbourne, Victoria, 3001 TeLephone: (03) 9641 3500 The National Group is an international financial services group that provides a comprehensive and integrated range of...

St. George Bank.(Special Feature--2003 Australia Banking Review)
November 28, 2003... ST. GEORGE BANK Headquarters: 4-0 Montgomery St, Kogarah, NSW, 2000 Telephone: (02) 9952 1111 St George, Australia's fifth largest bank continues to offer Australians a customer-focused banking alternative by differentiating...

Suncorp Metway Ltd.(Special Feature--2003 Australia Banking Review)
November 28, 2003... SUNCORP METWAY LTD 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,...

Westpac Banking Corporation.(Special Feature--2003 Australia Banking Review)
November 28, 2003... WESTPAC BANKING CORPORATION 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...

Replacing your core system.(News)(core banking industry )(Brief Article)
November 28, 2003... COMPETITION IN THE GLOBAL core banking industry is becoming increasingly fierce. Banks are finding that they have little choice but to replace their most vital systems. In doing so, many are looking to packaged vendor solutions for the...

Banks turn tellers into sellers.(News)(Fifth Third Bank )
November 28, 2003... SHERRI COOPER CASHED A LOT OF checks and made many deposits when she started her banking career 16 years ago. These days, as a personal banker at a Fifth Third Bank branch in Okemos in the US, she's helping customers invest in mutual funds...

ATM software allows customised service.(News)(Brief Article)
November 28, 2003... NCR Corp has launched APTRA Relate, its newest automated teller machine personalisation software enabling the delivery of individualised customer service and targeted marketing through the self-service channel. APTRA Relate enables...

FSRA a boost for brokers.(Australian Insurer)(Financial Services Reform Act 2001 (Australia))(Brief Article)
November 28, 2003... WITH THE RUSH TO BE FSRA compliant looming, it is worthwhile to reflect on what FSRA will realty means to brokers and the general insurance industry in the future. No one in the industry can bury their head in the sand and ignore the...

APRA wants new round of reforms.(Australian Insurer)(Australian Prudential Regulation Authority)(Brief Article)
November 28, 2003... THE AUSTRALIAN PRUDENTIAL Regulation Authority (APRA) is calling for a second round of general insurance reforms to toughen the disclosure rules governing the industry. According to APRA, the introduction at the prudential framework fat...

Promina's outlook brightens.(Australian Insurer)(Brief Article)
November 28, 2003... DRY WEATHER HAS CONTINUED to brighten the outlook for Australia's general insurance industry with recently-listed Promina upgrading its 2003 full-year profit forecasts because of the benign conditions. Managing director Michael Wilkins...

US insurers get burnt.(Austrialian Insurer)(Brief Article)
November 28, 2003... INSURER LOSSES FROM THE Southern Californian wildfires in October look set to be more than 10 times greater than those from the last Australian bushfire season. The Californian Insurance Commission has tallied 12,759 fire damage claims,...

World finance conference.(People)(Brief Article)
November 28, 2003... Australian Banking & Finance newsmagazine this month hosted the World Financial Services conference in Sydney. Prime Minister John Howard headed an impressive line-up of speakers. Axiss Australia was the major event partner while the...

Behind the screens.(News)(World Financial Services Conference)
November 28, 2003... Perhaps influenced by the europhia leading up to the World Rugby Cup final between Australia and England, Virgin Money's UK head Paul Pester threw a few haymakers at our top banker David Murray during this magazine's World Financial Services...

BT wary of AMP takeover.(News)(Brief Article)
November 28, 2003... BT FINANCIAL GROUP, THE FUNDS management arm of Westpac, claims a possible takeover of rival AMP could be a risk to its business. BT chief executive David Clarke said a well-executed takeover of AMP's Australian funds business by National...