First, it was this shocking news........

http://www.theage.com.au/articles/2004/07/28/1090694026887.html

NAB set to lose top spot
By Duncan Hughes
July 29, 2004

The share price of National Australia Bank continued its slide yesterday, falling to a new three-year low and raising the possibility that the bank could soon lose its decades-old crown as Australia's largest financial services company.

At one stage yesterday the market capitalisation of the country's largest lender briefly dipped below $40 billion for the first time since NAB revealed $3 billion in write-downs against the US HomeSide mortgage business in 2001.

It has now lost $6 billion since chief executive John Stewart's profit warning two weeks ago that cash earnings before significant items for the six months to September 30 were expected to be 10 to 15 per cent lower than in the March half.

Since NAB's share price hit a 52-week high of $33.12 on November 8, its value has plunged by about $7.5 billion.

NAB ended yesterday down 16¢ at $26.59.

The bank's market value fell yesterday to within a few hundred million dollars of Commonwealth Bank, the nation's second-largest lender, whose recent performance has also been mixed.

CBA ended the day down 10¢ at $31.

At the close of trading yesterday, NAB's market value stood at $40,090 million. By comparison, CBA's market value stood at $39,184 million, a difference of just $905 million.

NAB has been Australia's biggest financial services company since the 1980s, when it picked up market share from its troubled rivals ANZ Bank and Westpac and began adding more muscle with overseas purchases.

Growing disenchantment among investors, criticism from analysts and bad news from the market could depress NAB's market value below its nearest rival, adding another indignity to its troubled recent past.

A highly critical report of its Irish subsidiary, National Irish Bank, to be released tomorrow is expected to further depress sentiment, even though estimated costs of some $100 million have already been provisioned.

While unconnected with NAB's Australian operation, the matter still adds to the bank's perceived risk at a time when earnings and future dividend flow are under scrutiny, according to analysts.

"People are still very concerned about the future following the recent profit warning," said Richard Wiles, banking analyst for investment bank JP Morgan.

Mr Wiles is also concerned that NAB's profit downgrades have not been adequately explained, its ability to raise its dividend is seriously compromised and the share price, even after the recent battering, is still expensive.

Hopes that a quick sale of its European operations could provide revenue to mend its core operations were dashed after Mr Stewart reaffirmed NAB's preference for maintaining a presence in Britain.

Then came the news that.....

CBA accused of $2 billion error
By Duncan Hughes
July 29, 2004

Commonwealth Bank, the nation's second-largest lender, has been accused of overvaluing its fund management operation by up to $2 billion when benchmarked against peers such as AXA Asia Pacific and National Australia Bank.

A re-evaluation of the group's fund management operation would shave 5 per cent off the share price, slicing billions off its market capitalisation and stalling its march on NAB as the nation's largest financial services company.

It would also raise questions about chief executive David Murray's acumen in spending a then-record $9 billion for the Colonial Group, a diversified financial services group including fund management, at the peak of the market in 2000.

Deutsche Bank banking analyst Ross Brown said the $5.5 billion that CBA ascribed to its fund management operation was $2 billion too high and that a write-down would reduce the group's share price valuation by 5 per cent to $28.63.

Mr Brown also said the bank should be questioning the wisdom of buying a product manufacturer when the major growth was coming from its fund platforms, where management is shared with other managers.

Since June 2002 the retail business has suffered net outflows in six out of eight quarters, including the past consecutive five quarters, while the wholesale division recorded no net inflows in 2002 and net outflows of $2.2 billion the following year, according to Deutsche.

In addition, the composition of inflows has changed, with the bulk of new money flowing into platforms such as FirstChoice, where about half the funds are channelled to managers other then the bank's proprietary managers, the research claims.

Mr Brown also questioned whether the bank's assumptions about the value of future new business were "too optimistic" given that it admitted having difficulty retaining customers.

The number of bank customers using internet banking grew by about 6 per cent in the first quarter."Ironically, CBA's biggest wealth management success has been FirstChoice, which was built organically, reportedly for an estimated cost of $10 million," Mr Brown said. The company declined to comment.

Meanwhile, the number of bank customers using internet banking grew by about 6 per cent in the first quarter, reversing a previous-quarter decline attributed to security concerns.

The Market Intelligence Strategy Centre, which monitors usage, said the breadth of use by existing account holders was also expanding, reflecting growing maturity in computer banking.

CBA finished at $31 yesterday, down 10¢.





Something's goin realy wrong in Australia's banking industry....

I never understood why NAB was the biggest - they must do all their lending to business cuz I don't know anyone who is a customer, and I'm talking from years of Payroll Experience where you got to see peoples bank account numbers - there weren't many 08's in that lot!

for my info of the big 4 banks NAB is Melbourne Head office and CBA is Sydney right?
ANZ's HO is Melbourne and Sydney has Westpac, Macquarie, HSBC.

for my info of the big 4 banks NAB is Melbourne Head office and CBA is Sydney right?
ANZ's HO is Melbourne and Sydney has Westpac, Macquarie, HSBC.

There are some things spread about though.

I am not an expert on Banks but;
Doesn't Adelaide have Westpacks lending divison based there - I remember reading some article years ago about it moving?
Also remember reading articles related to Macquarie Bank and Citibank moving HQs or part thereof to Brisbane. Kind of made a similar stir as when Boeing relocated.

You could actually start an interesting thread about Business relocations as it happens every week that something relocates HQs from interstate. Most recent one was some Aerospace company moving from Mel to BNE - I think there is an article in the BNE thread.

Back to Banks - Has anyone else heard about the Lobbies of two of Brisbane's biggest banks being converted to shopping/retail area? Commonwealth Bank and Westpack both have plans to downsize.

jt

NAB: Level 24 , 500 Bourke Street , MELBOURNE , VICTORIA, AUSTRALIA, 3000
CBA: Level 7 , 48 Martin Place , SYDNEY , NSW, AUSTRALIA, 1155
ANZ: Level 6 , 100 Queen Street , MELBOURNE , VICTORIA, AUSTRALIA, 3000
WBC: Level 25 , 60 Martin Place , SYDNEY , NSW, AUSTRALIA, 2000

anyhow Banks suck, especially CBA with their fee regime which changes weekly practically.

anyhow Banks suck, especially CBA with their fee regime which changes weekly practically.

Your a student why dont you get the student account and never have to pay any fees, they dont even ask when your course ends, im doing a double degree in science 6 years HAHAHAHAHHAHAHA

Your a student why dont you get the student account and never have to pay any fees, they dont even ask when your course ends, im doing a double degree in science 6 years HAHAHAHAHHAHAHA

FFS - after reading that, I went into my branch and asked as to why I hadn't been made aware of that students aren't made to pay fees - I didn't get a straight answer at all, naturally however - lol I now dont have to pay bank fees though AND I'm getting my Commbank Visa Rewards fee refunded.... meahauhahuah indeed.

w00t thanks for the fcdb. I guess I should pay more attention to the copious amounts of spam CBA send me *looks sideways* :D

Didn't they send you the crap when you turned 18 tays?

that was 4 and a half years ago Ducka - how am I sposed to remember now? lol.

I do remember the account changing to a Streamline though. *shrug*

Yes all of Westpac's Lending (Personal Loans and the Mortgage Company) are based in Adelaide.

This might sound like a dumb question - but is Bendigo Bank's head office in Bendigo? Does anyone have photos of the building?

yes

The Bendigo Bank Group now operates more than 230 branches across Australia, with a concentration in Victoria and Queensland. This includes more than 85 Community Bank® branches operated by local communities. Bendigo Bank boasts total assets under management in excess of $10 billion and is listed on the Australian Stock Exchange with more than 44,000 shareholders. It is the only Australian bank headquartered outside a capital city.

ASX registered HQ address: BEN: Fountain Court , 2nd Floor , BENDIGO , VICTORIA, AUSTRALIA, 3552

other financial institutions that are listed on the ASX:

Adelaide Bank, ADB: 5th Floor, 169 Pirie Street , ADELAIDE , AUSTRALIA, 5000
Macquarie Bank, MBL: Level 15 , No. 1 Martin Place , SYDNEY , NSW, AUSTRALIA, 2000
Colonial First State: CFI: Level 30 , Colonial Centre , 52 Martin Place , SYDNEY , NSW, AUSTRALIA, 2000
St George: SGB: St George House , 4-16 Montgomery Street , KOGARAH , NSW, AUSTRALIA, 2217
Suncorp Metway: SUN: Level 18 , Suncorp Metway Centre , 36 Wickham Terrace , BRISBANE , QUEENSLAND, AUSTRALIA, 4000
Bank of Queensland: BOQ: Level 9 , Bank of Queensland Centre , 229 Elizabeth Street , BRISBANE , QUEENSLAND, AUSTRALIA, 4000

I just realised there aren't many listed financials (well one's that are practically "household" names anyhow).

how about bankwest :D.... well they are owned by HBOS now anyways

Also remember reading articles related to Macquarie Bank and Citibank moving HQs or part thereof to Brisbane. jt

If you call a small call centre a "HQ or part there of" then youre 100% correct JAYT ! ;)
Citibank moved a 120 person call centre to Brisbane from Sydney after Beattie threw big $$$$ at them. It has since closed down and the call centre has moved to Manila and now Beattie is trying to get the $$$$ back ! ( todays Financial Review )