The Sheet - Databank
The Sheet - better business journalism

• Not all Centro bank loans secured
  The Herald Sun reports for a second day on the approximate exposure of banks to the Centro Properties Group.
• Banks push niche lenders aside
  Non-bank lenders are having a poor time in the mortgage market, with October Australian Bureau of Statistics data showing bank loans accounted for 75.1 per cent of owner occupied lending, the banksÂ’ largest percentage market share since December 1998.
• Card rates head over 20 per cent
  Credit card rates of 20 per cent or more are becoming a commonplace, following moves by a number of issuers over the past months to re-price their card rates.
• Stress still concentrated in south-west Sydney
  Fitch Ratings has updated its snapshot of the localities most affected by mortgage delinquency. As with six months ago the problem is concentrated in SydneyÂ’s south-western suburbs.
• Zero rate intro deals explode
  Concerns about rising household debt levels have not caused any qualms in the marketing departments of the countryÂ’s credit card issuers. The latest Cannex credit card report, released yesterday, shows that the number of cards with zero per cent introductory rate offers has more than tripled in the past six months.
• CBA business customers not feeling the love
  Commonwealth BankÂ’s big investment in upgrading its business banking service has yet to translate into higher customer satisfaction, a new survey has found.
• More hot air from Westpac
  One goal Westpac management arenÂ’t achieving is that of reducing greenhouse emissions by five per cent in 2007.
• Growth rate weakens for CUBS
  Credit union and building societies increased residential lending a little below system at 12.9 per cent for the financial year to 2007, continuing market share losses for the predominately mortgage focused lenders.
• CUBS bad debts at historic lows
  The annual KPMG Building Societies and Credit Union Survey 2007 identified no signs of decline in credit quality for building societies and credit unions for financial year 2007, with both financial sectors out performing the major banks bad debt expense strongly.
• Forty per cent a better benchmark of stress
  The results of a survey of home loan borrowers has challenged the widely held view that the threshold for stressed borrowers is when more tan 30 per cent of gross family income is committed to housing costs.
• Westpac September 2007 profit highlights
  • Westpac reported net profit of $3.45 billion for the year to September, up 12.4 per cent on 2006. This was based on revenue of $10.2 billion, which was up 10.4 per cent.
• Banks profit from each other
  Bank balance sheets are ballooning on each side of the ledger, but especially on the asset side.
• St George Bank profit highlights
  Net profit for the year to September was $1.163 billion, an increase of 11 per cent over 2006. After adjusting for hedge fund accounting, cash profit was $1.160 billion, an increase of 13.1 per cent over the previous year.
• Customer satisfaction falters
  Bank customer satisfaction levels have peaked. After reporting higher levels of satisfaction with their banks throughout 2006 and early this year, customers had a change of heart in the September 2007 quarter.
• ANZ profit highlights
  ANZÂ’s full year profit is a tale of two halves. On most indicators the second half is noticeably inferior to the first half.
• Sell-side cut 2008 profit forecasts
  The combination of ANZ's 2007 result coming in at the bottom end of expectations and the market being surprised by the bank's $1 billion capital raising (via the dividend re-investment plan underwriting), led to ANZ shares being sold off 3.7 per cent in yesterday's trading.
• Asset finance companies lose lending share
  Finance companies are losing market share in their biggest market segment, business lending, as the banks make an aggressive push for more SME and middle market business.
• APRA life data out of step with industry change
  At first sight, the life insurance industry data released yesterday by the Australia Prudential Regulation Authority looks like bad news for the banks.
• Retail funding mostly flexible
  One continuing, though localized, puzzle arising from the two month old disruption to the liquidity of global capital markets is the difficulty in drawing any sensible comparisons over the level of retail funding of banks, at least of the Australasian variety.
• 14,000 signed to Commbiz
  CBAÂ’s market share of loans to non-financial corporations improved from 12.42 per cent as at June 2007 to 12.71 per cent as at August 2007.
• NZ mortgage arrears leap in July
  Home loan arrears are rising quickly in New Zealand as the impact of successive rises in official cash rates, and the refinancing of fixed rate mortgages at higher rates, affects household budgets.
• Big banks arrears rise against the trend
  Most lenders appear to be getting their home loan arrears under control, with the exception of major banks.
• One third find repayments harder
  More than a third of households say that they are finding debt repayments more difficult now than a year ago according to a survey published by Veda Advantage.
• Banking wrap - October 10
  Last week (ending Wednesday) the big five banks outperformed the index on average by 4.2 per cent to 2.8 per cent, having underperformed the index through most of the credit crunch period. This week saw a follow through, with the banks improving by 2.8 per cent against the index's 1.2 per cent. Performances ranged between 1.6 per cent from Commonwealth to 4.7 per cent from St George. Macquarie Bank and Babcock & Brown both added about 10 per cent.
• Catch-up for banks amid resource recovery
  This week saw a continuation of the banks playing catch-up in the wake of resource stocks. Indeed, more than half of the performance of the ASX 100 from the nadir of the credit crisis to last Friday had been due solely to one stock – BHP Billiton. While resource stocks have benefited in general from the weaker US dollar (which pushes up commodity prices), iron ore price speculation in particular has pushed BHP up well above analysts' average price targets.
• Regime shift stirs up insolvencies
  Bankruptcy and insolvency activity in the September 2007 quarter was 4.7 per cent higher than the same quarter a year ago, despite the industry having to changeover to the new Part IX rules on July 1.
• Aussie mortgages also down in September
  Aussie Home Loans yesterday said it reported lower levels of new business in September.
• Bank equities wrap - October 4
  Finally, the banks have outperformed the index. Two catalysts: a shocking result from Citigroup in the US, while Westpac feasts on mutton.
• Faltering titans spur financial rally
  The banks had been starting to regain some momentum last week as the effects of the Fed easing acted like a burst of WD40 on a chronically rusty nut.