Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  AUSTRALIAN SECURITIES EXCHANGE LIMITED  >  Australia and New Zealand Banking Group Limited    ANZ   AU000000ANZ3

AUSTRALIA AND NEW ZEALAND BANKING GROUP

(ANZ)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Australian Banks Face Mortgage Pricing Probe

share with twitter share with LinkedIn share with facebook
share via e-mail
0
10/14/2019 | 04:16am EST

By Robb M. Stewart

MELBOURNE, Australia--Australia's government has ordered a probe of banks' mortgage pricing after major lenders did not pass on in full the central bank's latest round of cuts to the official cash rate.

Treasurer Josh Frydenberg said Monday he has called on the competition regulator to investigate the prices charged for residential home loans and barriers that may prevent Australians from switching lenders. He said the regulator should consider how banks make pricing decisions and examine differences between the prices paid by new and existing mortgage borrowers and between reference interest rates and rates paid by customers.

Major banks haven't cut variable mortgage rates as deeply as the Reserve Bank of Australia has reduced the cash rate this year, which has seen the benchmark rate reduced in three times by quarter-point increments to a record low 0.75%. Holding back some of the cuts, which the banks have argued has been necessary to counter high wholesale borrowing costs, has led to allegations by some lawmakers the lenders are ripping off borrowers.

"The Australian public...is sick and tired of the merry dance where the RBA has cut rates three times in recent months, the government and the RBA itself have called on the banks to pass them on and the banks have just ignored that advice," Mr. Frydenberg said in an interview with the Australian Broadcasting Corp.

Mr. Frydenberg said the four biggest banks control about 80% of the country's 2 trillion Australian dollar (US$1.36 trillion) residential mortgage market, and the regulator needs to "lift the hood and to get to the bottom of this issue."

The Australian Banking Association, an industry body, welcomed the probe as an opportunity to cast light on mortgage pricing and the factors that influence the setting of interest rates.

Shayne Elliott, chief executive of Australia & New Zealand Banking Group Ltd. (ANZ.AU), said the big banks haven't done a good job explaining the rate-setting process. "The inquiry is a good opportunity to provide facts in what is a complex space," he said.

With the central bank's latest cash-rate cut earlier this month, ANZ reduced variable home-loan rates by between 0.14 and 0.25 percentage point and said it had to also consider the needs of its business and role in stimulating the economy. Commonwealth Bank of Australia, the country's biggest mortgage lender, cut its standard variable rates 0.13-0.25 point and said that was a balance between the needs of borrowers and savings customers as well as shareholders who rely on its dividend.

The Australian Competition and Consumer Commission said it expects to produce an interim report for the government by the end of March and final report in September. The latest probe will build on its mortgage-products inquiry which in late-2018 concluded opaque pricing by the big banks had stifled competition, inflated borrowers' costs and impacted their willingness to shop around for new mortgages.

Write to Robb M. Stewart at robb.stewart@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED -0.36% 24.81 End-of-day quote.1.80%
AUSTRALIAN DOLLAR / CANADIAN DOLLAR (AUD/CAD) 0.13% 0.90572 Delayed Quote.-5.72%
AUSTRALIAN DOLLAR / JAPANESE YEN (AUD/JPY) 0.13% 73.86 Delayed Quote.-4.23%
AUSTRALIAN DOLLAR / NEW ZEALAND DOLLAR (AUD/NZD) -0.14% 1.05944 Delayed Quote.1.23%
AUSTRALIAN DOLLAR / SWISS FRANC (AUD/CHF) 0.10% 0.67415 Delayed Quote.-2.03%
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) 0.11% 0.6806 Delayed Quote.-3.23%
BRITISH POUND / AUSTRALIAN DOLLAR (GBP/AUD) 0.02% 1.90053 Delayed Quote.4.67%
COMMONWEALTH BANK OF AUSTRALIA -0.34% 79.33 End-of-day quote.9.96%
EURO / AUSTRALIAN DOLLAR (EUR/AUD) -0.02% 1.62814 Delayed Quote.-0.24%
NATIONAL AUSTRALIA BANK LIMITED -0.30% 26.33 End-of-day quote.9.72%
WESTPAC BANKING CORPORATION -1.99% 25.16 End-of-day quote.2.52%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on AUSTRALIA AND NEW ZEALAND
11/20AUSTRALIA AND NEW ZEALAND BANKING : Issue of Euro 1,000,000,000 1.125% Subordina..
PU
11/20Australia's Westpac slapped with 23 million money laundering breaches
RE
11/20AUSTRALIA AND NEW ZEALAND BANKING : ANZ jointly leads another $315 million socia..
PU
11/18New Zealand to ramp up monitoring of NAB unit over capital calculation errors
RE
11/11AUSTRALIA AND NEW ZEALAND BANKING : Notice of 2019 Annual General Meeting
PU
11/11AUSTRALIA AND NEW ZEALAND BANKING : Corporate Representative Form
PU
11/11AUSTRALIA AND NEW ZEALAND BANKING : Questions from Shareholders Form
PU
11/11AUSTRALIA AND NEW ZEALAND BANKING : Proxy Form
PU
11/11AUSTRALIA AND NEW ZEALAND BANKING GR : Ex-dividend day for final dividend
FA
11/08AUSTRALIA AND NEW ZEALAND BANKING : ANZ provides bushfire relief package for New..
PU
More news
Financials (AUD)
Sales 2020 18 564 M
EBIT 2020 9 622 M
Net income 2020 6 116 M
Debt 2020 -
Yield 2020 6,30%
P/E ratio 2020 11,8x
P/E ratio 2021 11,2x
Capi. / Sales2020 3,79x
Capi. / Sales2021 3,72x
Capitalization 70 326 M
Chart AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED
Duration : Period :
Australia and New Zealand Banking Group Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends AUSTRALIA AND NEW ZEALAND
Short TermMid-TermLong Term
TrendsBearishBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 15
Average target price 26,85  AUD
Last Close Price 24,90  AUD
Spread / Highest target 18,5%
Spread / Average Target 7,85%
Spread / Lowest Target -5,22%
EPS Revisions
Managers
NameTitle
Shayne Cary Elliott Chief Executive Officer & Executive Director
David M. Gonski Chairman
Michelle Jablko Chief Financial Officer
Gerard Florian Group Executive-Technology
Paula Jane Dwyer Independent Non-Executive Director