ANZ - ANZ Banking Group

[oldblue]

ANZ is releasing an Investor Discussion Pack?????
Relating to the banks review of its retail and wealth business in Asia.

Even if history never actually repeats, it certainly chimes!

Reminds me of when ANZ reviewed its Indian retail business and decided to sell its subsidiary, Grindleys Bank. Twenty-odd years ago?

 

[oldblue]

ANZ to sell its retail business in Vietnam and to concentrate on institutional banking. Seems the lesson of Grindlays in India all those years ago needs to be re-learnt by every succeeding generation of ANZ executives!

 

[Redbeard]

They could have just tried to open a bank account in any other bank to learn how infuriating banking practices are in VN.

 

[Redbeard]

Now a real question.

I have just been going through old records of my holding when I noticed something odd.
In 2002 I withdrew from the BOP scheme and had a balance of $9.29 left over.
When I elected to start the BOP again in 2012 the opening value of the BOP account was $0.

My question is where did the $9.29 go?
As far as I can recall/search I cannot find a payment for that amount.

 

[herzy]

Now a real question.

I have just been going through old records of my holding when I noticed something odd.
In 2002 I withdrew from the BOP scheme and had a balance of $9.29 left over.
When I elected to start the BOP again in 2012 the opening value of the BOP account was $0.

My question is where did the $9.29 go?
As far as I can recall/search I cannot find a payment for that amount.

What's BOP?

Usually amounts under a certain threshold get donated to charity.

 

[Redbeard]

What's BOP?

Usually amounts under a certain threshold get donated to charity.

BOP (Bonus Share Plan) is another form of DRP where you forgo the dividend and receive shares.
there are different rules associated with them.. There are other threads that talk about it.

Anyway its OK, I asked the Share-registry/Bank and then said when I left the scheme the first time I 'lost' the balance. Which is kinda right as I had already "forgone" my dividend entitlement.

It all a big play on words really. But the Tax office worries about the difference!!

 

[Joules MM1]

the worst garbage news at the bottom of a cycle .......nice
https://twitter.com/i/moments/1003907958885965826

 

[Joules MM1]

just a slap on the wrist ......is it enough...seems not much according to critics of HSBC
https://iview.abc.net.au/programs/four-corners/NC1803H014S00

 

[Redbeard]

the worst garbage news at the bottom of a cycle .......nice
https://twitter.com/i/moments/1003907958885965826

Yes, still trying to work out "the cartel bit"? Having capital raising shares offered to the public and/or institutions is nothing new. Over the years I am sure some companies have place shares with institutions only "to save the costs of a retail offering".
I am failing to understand why what happened is cartel behaviour. And of course the reporters don't understand it either so they don't explain it.

 

[HelloU]

my limited understanding is that it is to do with the underwritten part of the issue that was not taken up in the offer - and then the underwriters allegedly kept the ANZ SP 'artificially' high by having a very controlled and prolonged exit from said shares - contrived to not dump. That is what ur tax dollars will be used for - to see if that is naughty behaviour.

(not to be confused in any way with shorting though, cos apparently borrowing shares that you do not even own in order to dump the same on the market to 'hopefully' get the SP to drop is not considered naughty behaviour)

 

[Redbeard]

Naughty or nice; isn't it what you can get away with!
Yes, found another article tonight saying what you explained, the problem was the "method of dispersal to the market" was an agreed method. Looks like JPMorgan tattled before they were caught out.

What I dont get is why didnt they just offer more in the retail ($26.50) offer then, or was that the idea?? Limit the retail allocation and "give" them to the institutions to sell off at a larger price. If thats what my tax dollars is going to find out , then all for it. Why should a big underwriter get preference over me. I could have bought more shares and the sold them for a profit on the market myself!!

 

[HelloU]

rambling now as I dk........all announced together but the insto was a month or so earlier than retail offer and done at over $30 - to be used for tier 1 capital increases demanded by government. Insto was 4 or 5 times bigger than retail and underwritten - it was the real tier 1 money. Maybe the issue surrounds propping the price up before the SPP price was determined? (as would assume the price was collapsing if the SPP was done at $26 odd but guessing and not going back to look)

 

[HelloU]

$500M offered retail but ended up with $720M, ANZ accepted all with nil scaleback. $26-50 price done on VWAP first week Sep15. Insto was set at $30-95 and not altered, started trading 13Aug15.

 

[notting]

Great couple of days for ANZ especially and WBC flying off it's year lows and the rest of the financial sector.
Internationals buying on the back of a low AU$ very cheap for them!! They have been absent for a while probably sitting out on the Royal commission which may look worse for them than us who know it's a bunch of BS.

 

[bigdog]

Age Reported
https://www.theage.com.au/business/...mpensation-other-charges-20181008-p508bx.html

ANZ shares dive on heavy royal commission and compensation costs

ANZ Banking Group has drastically increased the amount of money it expects to pay customers in compensation for poor or non-existent advice, taking the total amount of refunds the banking sector plans to pay to a massive $1.45 billion, but analysts warn the banks might have to set aside even more money to refund customers.

ANZ's shares slumped after it said it would take a $824 million hit to its annual result, with more than half that amount, or $421 million, to compensation customers who received inappropriate advice or were charged fees for no service.

Shareholders took a $2 billion hit on Monday after the group announced the massive writedown, with ANZ's shares closing down 2.63 per cent, or 73¢, to $26.99.

The Australian Securities and Investments Commission outgoing deputy chairman Peter Kell said in August that fees-for-no service refunds could top $1 billion.

Late last month, Westpac said its cash earnings would fall by $235 million due to remediation programs and litigations.

CLSA banking analyst Brian Johnson said shareholders should expect more provisions for customer compensation and costs associated with remedying issues brought to light by the banking royal commission.

"It’s a big number and it looks so big it’s tempting to say they’ve done a lot but they do say there are more reviews to come," Mr Johnson said.

"But I don’t think you could rule out that there will be more for both ANZ and across the sector."

Shaw and Partners banking analyst Brett Le Mesurier also expected further provisions for remediation programs across the sector.

"There will quite possibly be more next financial year. This is their estimate based on the work that they’ve done so far," he said.

On Monday, ANZ said it expected to record charges of $374 million after tax in the second half of the 2018 financial year for refunds to customers and related remediation costs. This amount added to the $48 million in provisions it made in the first half of 2018 for remediation costs.

"These relate to issues that have been identified from reviews to date," ANZ said in a statement released on Monday morning. "These reviews remain ongoing."

Of the $824 million in total impairments, ANZ said $697 million related to its continuing operations. This included a $206 million writedown on the value of the IT systems the bank used in its now largely abandoned Asian businesses.

It booked a further $127 million impairment relating to compensation for customers in its wealth business, which it sold to IOOF last year.

Some of the remediation relates to refunds to customers severed by ANZ's aligned dealer groups that have now been sold to IOOF. ANZ is also remediating customers who were incorrectly charged interest payments and has made impairments for the customers it believes are likely to have received inappropriate advice.

The majority of the flagged impairments, or $711 million, will be recorded in the bank's second half to September 30.

Along with the customer remediation and software expenses, ANZ expects to book a $104 million hit on the restructuring of its technology department.

The bank also revealed that its legal costs for the royal commission for 2018 would be $55 million or $38 million after tax, with the majority of that amount, or $27 million, recorded in the second half.

ANZ's results are scheduled to be released on October 31. It last year delivered an annual cash profit of $6.9 billion.

The impairments come as the bank's chief executive, Shayne Elliott, prepares for a public grilling when he appears at the government's ongoing review of the banking sector on Friday.

The banking sector's fees-for-no-service scandal has been a flashpoint for the royal commission with all big four banks admitting to charging customers - including in some cases dead customers - for services they did not receive.

 

[JTLP]

Honestly - the banks feel like a buy tomorrow. That was a very shallow, much ado about nothing royal commission.
Yes credit growth is slowing and house prices yada yada. But it’ll be 2020 before we know it, the RBA will have at the minimum quantitatively eased and so banks should be in a good position. My take!

 

[JTLP]

And there you have it. Up 5% today. Headwinds overblown. Retail data today could give it another kick.

People may have been in the know yesterday morning...

 

[IFocus]

A question for any one who knows, I hold ANZ in my super but I am in the middle of selling my place and have been waiting for buyers (going through ANZ) to get finance approved 1st buyer 10 weeks still no answer, 2nd buyer 5 weeks still no answer. looked on line at reviews for ANZ and lots have the same problem.

Question is how can this be a good business process it makes no sense.

Thinking of dumping the shares.

 

[sptrawler]

A question for any one who knows, I hold ANZ in my super but I am in the middle of selling my place and have been waiting for buyers (going through ANZ) to get finance approved 1st buyer 10 weeks still no answer, 2nd buyer 5 weeks still no answer. looked on line at reviews for ANZ and lots have the same problem.

Question is how can this be a good business process it makes no sense.

Thinking of dumping the shares.

The banks are doing a lot more due diligence, my son recently bought a 100acre block of land, he had verbal pre approval but when he went for the loan had to stump up another $60k.

 

[IFocus]

My understanding is its not the changes in measuring risk but off shore processing (India) thats the problem I just don't see the business case in the extended times being justified there is a fair bit of anger on the net about it.