2 Banking Sector Stocks – ANZ, NAB

  • Aug 15, 2018 AEST
  • Team Kalkine
2 Banking Sector Stocks – ANZ, NAB

Australia and New Zealand Banking Group Ltd (ASX: ANZ)

The banking sector stock traded at $ 30.060 on August 15, 2018, up 1.4% as at 2:30 PM AEST. Release of Interim Financial Statement Highlights included the following: ·         Net interest income increased from NZ$755m in the 3 months ended June 30, 2017 to NZ$796m in the 3 months ended June 30, 2018. ·         Operating income increased from NZ$976m in the 3 months ended June 30, 2017 to NZ$1,035m in the 3 months ended June 30, 2018. ·         Profit after Income Tax increased from NZ$428m in the 3 months ended June 30, 2017 to $NZ474m in the 3 months ended June 30, 2018. As of June 30, 2018, the cash balance was NZ$3,172m. Sale of Pensions and Investments business ANZ has inked a non-binding term sheet for the transfer of some of the economic interest of its Pensions and Investments business and the legal ownership of its Aligned Dealer Groups to IOOF. This has been slated to be in effect from October 1, 2018. An initial payment of $800 million will be received from IOOF while there is no capital benefit until final completion. ANZ to focus on Institutional and Large Corporate Banking in PNG ANZ signed an agreement for the sale of Retail, Commercial and Small-Medium Sized Enterprise banking businesses in Papua New Guinea to Kina Bank, as the group now aims to focus on Institutional and Large Corporate banking. This transaction is for the sale of 15 ANZ branches and has been identified to be not material to ANZ. Enhancing share buy-back by $1.5 billion to $3 billion ANZ will enhance its on-market share buy-back by an additional amount of $1.5 billion to a total of $3 billion. National Australia Bank Ltd (ASX: NAB) NAB stock edged up to $28.595, as at August 15, 2018, at 3 PM AEST. Upcoming financial results NAB expects to report full year results on November 1, 2018. Third Quarter Update Group’s cash earnings were down 1% and slipped by 3% compared to the prior corresponding period (3Q17) owing to higher investment expense along with credit impairment charges. On the other hand, there was a 1% increase in revenue basis growth in SME lending within Business & Private Banking and better performance by New Zealand Banking. Mainly costs also impacted net interest margin and expenses were up 2%. Also, the Common Equity Tier 1 (CET1) ratio of 9.7% was down from 10.2% reported at March 2018 owing to interim 2018 dividend declaration and loan growth in the June quarter.

MLC Trustee switches off Plan Service Fee and refunds members

From September onwards, MLC’s superannuation Trustee, NULIS, will not deduct the Plan Service Fee from MLC MasterKey Personal Super member accounts and Plan Service Fees paid will be refunded to all MKPS members. MLC is refunding members directly while Trustee has not retained the fees, as these were passed onto financial advisers. Approximately 305,000 members will receive a refund, with the average refund being approximately $220 per member, plus interest. The impact of this was partly provided for in NAB’s 2018 half year results. The remainder will be provided for during the second half of NAB’s 2018 financial year. Given the existing provisions, the Company stated that the impact on second half 2018 earnings will not be material.

NAB appoints Geoff Lloyd as CEO of MLC NAB Group Chief Executive Officer, Andrew Thorburn, announced about appointing Geoff Lloyd as CEO of MLC, effective September 1, 2018. The appointment follows NAB’s announcement in May that it will exit its Advice, Platform & Superannuation and Asset Management businesses, currently operating under MLC and other brands, to allow a focus on a simpler wealth offering through nabtrade and JBWere.

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