ANZ, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

[rog]

In Reply To: plastic's post @ Oct 31 2018, 06:57 AM

The RC has damaged the perception of banking and the banks are exposed to a public loss of confidence.

I doubt that this will sustain as the banks are in control of the money supply.

At the end of the day, we all need money.

[nipper]

ANZ profit goes backwards as costs bite

ANZ's full-year cash profit from continuing operations fell 5 per cent to $6.49 billion. It is paying an unchanged dividend

[plastic]

Is this good news or bad in light of the AMP decision?

https://www.asx.com.au/asxpdf/20181031/pdf/...tfl9k05dy4r.pdf

The banks will be more informed than anyone else about their exposures and capital needs. So why the sudden shift if tack? My guess is no buyers because the market has no appetite. Or perhaps they will hive off their residential housing portfolio instead. This is eminently more sensible. Logical buyer would be a state owned entity.

If the outcome of the Royal Commission results in big bank break ups and niche specialization then this makes a lot of sense.

[plastic]

What happens when the music stops. And when you are overweight in a receding property sector what do you think will happen?

https://www.zerohedge.com/news/2018-10-10/h...ady-begun-erupt

doubt that European governments would allow their banks to default on dollar obligations; long before that could happen, European regulators would arrange shotgun mergers and emergency recapitalizations. But the risk remains that dollar credit will seize up globally, with disastrous consequences for countries that have to borrow dollars to cover deficits.]

[blacksheep]

Schedule
Review of the Four Major Banks (Fourth Hearings)
PUBLIC HEARING
Thursday 11 October 2018
9.15 am Commonwealth Bank of Australia
1.15 pm Westpac

Friday 12 October 2018
9.15 am Australia and New Zealand Banking Group Limited

Friday 19 October 2018
9.15 am National Australia Bank

https://www.aph.gov.au/Parliamentary_Busine...Public_Hearings

[blacksheep]

In Reply To: blacksheep's post @ Jun 22 2018, 01:08 PM

ANZ today announced that its Full Year 2018 Cash Profit will be impacted by additional
charges for customer compensation, accelerated amortisation of software and other notable
items.

Customer compensation
Charges of $374 million1 have been recognised in 2H18 for refunds to customers and related
remediation costs. These relate to issues that have been identified from reviews to date.
These reviews remain ongoing.
Approximately 57% relates to customer refunds impacting revenue, with the balance
relating to remediation costs recorded as an expense. The total remediation charge is split
approximately 66%/34% between Continuing and Discontinued operations.

Key items of customer remediation include:
• Compensating customers for issues arising from product reviews in the Australia
Division.
• Compensation for customers receiving inappropriate advice or for services not
provided within ANZ’s former aligned dealer groups2.

Software amortisation
ANZ has accelerated the amortisation of certain software assets, predominantly relating to
its International business. This follows a recent review of the International business along
with a number of divestments announced or completed this year. Accelerated amortisation
expense of $2061 million will be recorded in 2H18.

Other notable items
Along with announced divestments and the matters above, the following notable items will
be highlighted in the FY18 Results Announcement:
• Restructuring charges of $1041 million in 2H18, largely relating to the previously
announced move of the Australia and Technology Divisions to agile ways of working.
• External legal costs associated with responding to the Royal Commission which will
total $55 million (pre-tax) for FY18

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[blacksheep]

In Reply To: blacksheep's post @ Jun 19 2018, 11:52 AM

ANZ to increase share buy-back by $1.5 billion to $3 billion - SP responds accordingly - up 2.96% @ $28.675
https://www.shortman.com.au/stock?q=anz

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[blacksheep]

In Reply To: mullokintyre's post @ Jun 5 2018, 05:45 PM

JPMorgan chair quits ASX amid cartel case
AAP
Tuesday, 19 June 2018 10:33AM

JPMorgan Australia chairman Robert Priestley has quit as a director of the ASX as a criminal case progresses against ANZ bank over a capital raising underwritten by the investment bank.

Mr Priestley was chief executive of JPMorgan's local division when, in 2015, it was one of three underwriters for the $2.5 billion share placement that triggered an ACCC investigation and then criminal cartel charges against ANZ, Citigroup Global Markets Australia and Deutsche Bank.

JP Morgan has not been accused of wrongdoing - prompting reports it has been granted immunity in exchange for evidence - but Mr Priestley said in a statement on Tuesday it was the "right course of action" to step aside.

https://thewest.com.au/business/markets/jpm...se-ng-s-1869383

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[blacksheep]

extract of Motley Fool's article - This bank could top Commonwealth Bank of Australia’s (ASX:CBA) record $700m fine

If you thought the record $700 million fine slapped on the Commonwealth Bank of Australia (ASX: CBA) to settle its money laundering violations with the government was a whopper, you probably would gasp at the potential fine Australia and New Zealand Banking Group (ASX: ANZ) may have to cough up.

Shareholders should be counting the cost of the string of bad behaviour from our banks as their share prices stage a tentative recovery after taking a beating earlier this year with the sector trading in the black even as the S&P/ASX 200 (Index:^AXJO) (ASX:XJO) index slipped 0.2% into the red.

But ANZ shareholders could be $1.3 billion poorer off if it is found guilty of the two criminal cartel charges that were brought on by the Australian Competition and Consumer Commission (ACCC), according to an analysis by Morgans.

The maximum fine the bank could be hit with for the offences of making of a cartel and giving effect to a cartel under the Competition and Consumer Act (2010) is around $2.6 billion, but as with Commbank’s case and many others, we know companies breaking the law won’t get hit with anything nearly as high.

This has prompted Morgans to look at other similar cases to find a precedence that could help investors quantify a more probable penalty.

“Using the ACCC v Yazaki Corporation case (final penalty handed down in May 2018) as a guide, the penalty for ANZ may end up being ~50% of the statutory maximum applicable,” said the broker.

“If such is the case, then ANZ may face a penalty of $1.3bn if it is found guilty of the two offences.”

Commbank’s fine was the biggest in history paid by an Australian corporation. ANZ’s could be nearly twice as large and the more aggressive stance by Australian regulators towards corporate bad behaviour means any penalty will need to cause sufficient pain to the bank without causing it to collapse.

ANZ can stomach such a big fine but it remains to be seen if shareholders will suffer from the indigestion. After all, the news of Commbank’s 700 million lashings actually triggered a relief rally in its share price as investors were bracing themselves for a worse outcome.

I am not sure if ANZ will get the same reaction as I don’t think the impact of the potential fine has been fully priced into its share price – at least not yet.

Brokers, including Morgans, haven’t adjusted their forecasts either to provision for this outcome as it’s probably a little too early to declare ANZ guilty given that management is defending itself.

The bank may have more to lose by pleading guilty early too as its group treasurer, Rick Moscati, is also charged with the offences. You can’t jail companies, but you can executives if found guilty of what for now are just allegations.

But if ANZ has to cough up a big fine, it will probably come out of the cash it has set aside for its share buyback, according to Morgans.

The $1.3 billion represents 21% of the bank’s buyback budget. Investors won’t be happy.

The other two big banks, Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd. (ASX: NAB), appear to be less tainted by the string of banking scandals buffeting the sector.

Let’s hope it stays that way, although those close to retirement can probably do without the uncertainties clouding the banking sector.

https://www.fool.com.au/2018/06/08/this-ban...cord-700m-fine/

[mullokintyre]

So, Finally a real person is being charged.
Criminal charges have been laid against ANZ, Citigroup, Deutsch Bank and six senior executives.

Interestingly, JP Morgan has not been charged.
According to the Australian Newspaper, they may have rolled over and turned informer to get indemnity.

I read this in this mornings paper, but when I got home tonight, the ABC had it as breaking news (in Red no less!).
I assumed it must have been another charge, but its the same info as I read in the Oz.



ABC NEWS


Mick