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  • to put in a specific day every month in order to communicate an announcement Mrs Kelly said Demand boost hopes Westpac s chief financial officer Phil Coffey said he hoped the RBA s recent rate cut would encourage credit demand It would be disappointing if lower interest rates didn t actually encourage some additional borrowing particularly from the low level we ve got right now Mr Coffey said But consumers and businesses are pretty cautious so you d have to guess that some of that saving from lower borrowing costs will also be saved so it won t all go into additional credit growth he said The Commonwealth Bank this morning revealed it would pas on 40 of the 50 basis point reduction to its holders of variable mortgage rates Deposit rates are still under review the CBA said Rival National Australia Bank became the first major bank to reveal its new interest rate setting yesterday It passed on just 32 of the 50 basis point reduction to its mortgage holders while knocking down its deposit rates by the full half percentage point amount ANZ plans to stick to its policy of revealing its interest rates on the second Friday of each month independently of the RBA That means ANZ customers will have to wait until May 11 to find out the bank s response to this week s cut by the central bank Even through Westpac had the highest headline mortgage rate among the major banks Mrs Kelly said Westpac was still winning housing market share from rivals while the bank s efforts on managing relations meant there are few customers leaving the bank Meanwhile the pricing of mortgages often varied between customers I m amazed how people pay attention to that standard variable rate We all know very few people pay the actual SVR rate she said Profit reverse Westpac s drop in net profit which includes changes in investments and one offs may provide the bank cover for not passing on the full 50 basis point cut in interest rates Net profit for the six months to March 31 stood in contrast to the 3 96 billion the bank posted in the previous corresponding period Part of the profit drop though was caused by a one off tax benefit from the purchase of St George bank booked in the year earlier period Westpac s net interest margin a key indicator of its profitability fell 6 basis points to 2 17 per cent largely because of higher costs of attracting more deposit holders These higher funding costs were mostly due to the increased benefit customers received from higher deposit returns relative to market rates the bank said in a statement Volatility Westpac said while there had been significant uncertainty and volatility in the first half due to the European debt crisis some stability had returned to financial markets However the bank warned while there were signs of improvement in Europe and the United States the global recovery remained

    Original URL path: http://www.apx.com.au/NEWS/ViewArticle.aspx?ArticleID=260 (2015-10-07)
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  • On Monday NAB said it was slashing 1 400 jobs from its struggling U K operations Westpac Australia s second largest bank by market value traditionally has the smallest international exposure among the big four But its general manager for Asia Yogan Rasanayakam says India is among the several emerging markets the bank now considers fertile ground for growing earnings The Australian component in Asia has grown significantly particularly with the challenges affecting European banks said Mr Rasanayakam In the longer term India and China are where we re going to see clients Westpac s chief executive Gail Kelly has been seen as slower to target Asia Pacific than her rivals but shrinking loan growth in Australia has prompted it too to chase the region s heady growth markets in the scramble to swell profits According to J P Morgan Australian loan growth looks set to remain in the mid single digit range for some years to come as the nation s consumers continue to worry about the global economy and shun interest rates that in spite of recent cuts are still among the highest in the developed world Australian banks seem powerfully positioned to benefit from the retreat by Europe s lenders which at the moment account for between 4 and 8 of domestic credit across much of developing Asia and even more in the financial centers of Hong Kong China and Singapore according to the ADB Among the eurozone lenders French and German banks are the most exposed to Asia The deleveraging by eurozone banks definitely provides an opportunity for other banks to step into the gap said Lei Lei Song principal economist at the ADB s Office of Regional Economic Integration Asian banks including those in Australia have strong balance sheets and high capital ratios and so

    Original URL path: http://www.apx.com.au/NEWS/ViewArticle.aspx?ArticleID=289 (2015-10-07)
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  • for two consecutive years significant financial and accounting reporting errors or those that have violated disclosure rules Listed companies with shares trading below par value or Rmb1 0 15 for 20 consecutive trading days are also classified as trash stocks as they are known in China Only a small fraction of companies meet the definition at the moment though that may change as disappointing results continue to filter through There are currently 128 stocks in the A share market facing the risk of delisting representing slightly more than 5 of the 2 417 stocks traded in Shanghai according to Changjiang Securities The new stock delisting rules are part of broader financial reforms to China s capital markets The absence of a delisting mechanism has heightened volatility encouraging speculators to bet on the dramatic fluctuations of underperforming stocks Soon after he took the office China Securities Regulatory Commission chairman Guo Shuqing said that an efficient system to delist companies would be introduced by mid year and should be launched on the foundation of an investor protection system According to the guidelines companies will be traded on the new board for 30 trading days before being completely removed from the bourse During their remaining days on the exchange shares must trade within a required price range The upper limit of the daily price movement is 1 while the lower limit is 5 On each trading day an investor can only buy a maximum of 500 000 shares in trash stock companies the guidelines suggested The delisting rules may deal a big blow to China s B share market which quotes shares in US and Hong Kong dollars and has for a long time suffered from low liquidity It is widely expected that Tsann Kuen a maker of electric appliances will be the

    Original URL path: http://www.apx.com.au/NEWS/ViewArticle.aspx?ArticleID=234 (2015-10-07)
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  • number is a bit lower And the more recent numbers also show some slowdown Jing Ulrich managing director of JPMorgan Chase China said In the last several months we re seeing China s exports growth dropping to single digits China s export to Europe have begun to drop to negative territory To make matters worse Europe is the single largest market for Chinese exports accounting for more than 22 percent of the country s total outbound shipments last year With the European debt crisis continuing to bite onto demand experts said manufacturing and exports can no longer propel Chinese economic growth and by extension prop up the global recovery But it s not about regaining the heady GDP growth of the past decade Analysts say China should ward against an excessive slowdown Tsinghua University professor Li Daokui said Moderate slowing down is desirable But excessive slowdown could be damaging to the whole economy And from reliance on exports to a renewed focus on domestic consumption from prudent monetary policy to gradually easing monetary policy and this a flurry of stimulus policies the likes of tax cuts fiscal support and subsidies on energy efficient products China s policymakers are moving actively to shore up growth Li said There will be huge number of policies be unveiled by the government to boost economic growth And those are different from four years ago Zhu Haibin chief China economist of JPMorgan Chase said In the first several month the government has put more focus on economic restructuring And it s now more balanced and shift towards growth concern so policy shift is happening And we expect that fiscal policy will pay an active role That means investment government supports tax cut consumption stimulus and monetary policies including more RRR cuts Those in all will

    Original URL path: http://www.apx.com.au/NEWS/ViewArticle.aspx?ArticleID=303 (2015-10-07)
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