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NZ Reserve Bank Consulting On Property Investor Loans

The Reserve Bank of New Zealand is consulting on a new asset class treatment for mortgage loans to residential property investors within its capital adequacy requirements. They propose to separate investment and owner occupied loans from a capital perspective, (once loan types are defined), and apply different capital treatments, requiring more capital for investment loans, … Continue reading “NZ Reserve Bank Consulting On Property Investor Loans”

The Post-Crisis Bank Capital Framework

David Rule, Executive Director, Prudential Policy at the Bank of England gave a good summary of the current issues surrounding capital, and commented specifically on issues surrounding internal (advanced) methods. Six and half years after the depths of the Great Financial Crisis, we know the shape of the future global bank capital framework. But important … Continue reading “The Post-Crisis Bank Capital Framework”

Macquarie Group Operational Briefing

Macquarie Group Limited (Macquarie) today provided an update on business activity in the third quarter of the financial year ending 31 March 2015 (December 2014 quarter) and updated the outlook for the financial year ending 31 March 2015 (FY15). It was a solid story, and the changes in business mix are likely to support momentum … Continue reading “Macquarie Group Operational Briefing”

ANZ Trading Update – Solid In Tough Environment

ANZ today announced an unaudited cash profit of $1.79 billion and an unaudited statutory net profit of $1.65 billion for the 3 months to 31 December 2014, declaring it was a “solid result in a tough environment”. We say, “below expectations, in an increasingly complex and competitive market!”  Profit before Provisions grew 5.2% versus the … Continue reading “ANZ Trading Update – Solid In Tough Environment”

Bendigo Bank Results Show Signs Of Home Loan Competition

Bendigo and Adelaide Bank (BEN), Australia’s fifth largest bank, today announced an after-tax statutory profit of $227.3 million for the six months ending 31 December 2014. The results were in line with the consensus expectations. Underlying cash earnings were $217.9 million, a 10.9 per cent increase on the prior half year result. Bad and doubtful … Continue reading “Bendigo Bank Results Show Signs Of Home Loan Competition”

Is More Securitisation A Good Thing?

Prior to the 2007 Financial Crisis, securitisation was seen as a tool to support economic growth and financial stability by enabling issuers and investors to diversify and manage risk. By transforming a pool of illiquid assets into tradable securities, securitisation frees up bank capital, allowing banks to extend new credit to the real economy, and … Continue reading “Is More Securitisation A Good Thing?”

When Are Banks Too Big To Fail?

The Bank of England just published a research paper “Financial Stability Paper 32: Estimating the extent of the ‘too big to fail’ problem – a review of existing approaches – Caspar Siegert and Matthew Willison”. The disorderly failure of a large financial institution could cause widespread disruption to the financial system. Because of this, authorities … Continue reading “When Are Banks Too Big To Fail?”

CBA Results Suggests Momentum Slowing?

The Commonwealth Bank of Australia announced its results for the half year ended 31 December 2014 today. The Group’s statutory net profit after tax (NPAT) for the half year ended 31 December 2014 was $4,535 million, which represents an 8 per cent increase on the prior comparative period. Cash (NPAT) was $4,623 million, an increase … Continue reading “CBA Results Suggests Momentum Slowing?”

NAB 2015 First Quarter Trading Update

NAB released its trading update today. Overall cash profit was a little below expectations, and loss provisions were up. Looking in more detail, revenue rose approximately 4%, but after excluding gains on the UK Commercial Real Estate (CRE) loan portfolio sale and SGA asset sales, on a like for like basis, increased approximately 2% thanks … Continue reading “NAB 2015 First Quarter Trading Update”