http://au.rd.yahoo.com/rss/default/*http://nz.biz.yahoo.com/financenews/company/australia.html Yahoo!Xtra Business News - Company News Australia en-au Copyright (c) 2009 Yahoo! Inc. All rights reserved. Sat, 07 Nov 2009 13:20:55 GMT http://au.rd.yahoo.com/rss/default/*http://nz.biz.yahoo.com/091105/20/fim6.html /091105/20/fim6.html Thu, 05 Nov 2009 08:21:09 GMT http://au.rd.yahoo.com/rss/default/*http://nz.biz.yahoo.com/091104/21/fi4m.html Westpac yesterday completed the September 30 balancing bank profit reports with yet another example of how financially strong our big four are. The Commonwealth at June 30 started the trend with a rise in interest margins and strong rises in revenue and bank lending for home mortgages, plus a jump in interest income and the National, the ANZ and now Westpac have continued the trend. All had big rises in bad and doubtful debts thanks to poor and doubtful lending decisions; all grew revenues faster than costs (except the ANZ which is financing a move into Asia), all have built on their dominance of the local economy and all fattened their interest margins for the first time in years. So the latest news on higher bad and doubtful debt charges, a move that did frighten markets in May when the interim reports were issued, have this time been shrugged off as analysts and investors now wonder about the size of the coming rise in earnings. A New Zealand tax judgment remains a concern for all four: collectively it's around $1.9 billion. Westpac has appealed its adverse funding and the possible huge payouts have been provided for and won't have an impact on the earnings of the banks, except in an accounting sense. All the banks have cut dividends and not given any real lead to shareholders about when they can expect their payments to be returned to former levels, except for Westpac, which has lifted its final (compared to its interim) in a sign that it might be a bit more confident than it seems from its commentary. Underlying earnings were strong (that is profits before the impact of write-downs and bad loan provisions) over the year. Westpac saw net profit down 11% to $3.4 billion. But the real story can be seen from the following bald stats: "Pro forma core earnings of $10.015 billion, up 19%, Pro-forma revenue of $16.755 billion was up 13%, Expense growth moderated over the year to 5%." The cost to income ration fell to 43.3 cents in every dollar from around 47 cents because revenues grew much faster than costs. Westpac lifted its net interest margin 0.31%, the best of the big three September 30 banks, up from 2.07% to 2.38%. That 0.31% margin topped the ANZ's 0.28% and the ANZ's rise of 0.17%. That means both Westpac and the ANZ managed to lift their margins by more than a normal Reserve Bank interest rate movement of 0.25%. A $2 billion rise over the 12 months to September 30 took the amount set aside for, and doubtful debts for the full year, to $3.29 billion. Westpac's total provisioning now stands at $4.7 billion of which $500 million covers for the possibility of a general decline in its customers' short-term ability to repay their loans (economic overlay is the jargon).  Cash earnings fell, down 8% to $4.6 billion. Final dividend was fixed at 60 cents a share, making the total pay-out for the year of $1.16 a share. That's down 18% from the corresponding period a year ago. However, the group lifted its normal pay-out ratio as a share of net profits from 70% to 73%. And there hangs another story. A year ago Westpac actually lifted the final dividend 2 cents to 72 cents, after the collapse of Lehman Brothers and as the Australian and global economies slowed. The other banks were not as adventurous. Yesterday Westpac announced a 60-cent final dividend - down 17% from last year's final, but up 4 cents (7%), from the interim. That increase was not justified by the second-half results with cash earnings effectively in line with the first half, so an increase in the payout ratio was required to make it. But that tells us something about how the Westpac management and board view the outlook (and remember Westpac is more of a 'stay at home bank' compared with the NAB, ANZ and even the CBA with its small interests in Asia). They are more than a bit confident the coming year will turn out to justify the increased payout level (and so must regulators, which like to be consulted at the moment on capital payments and dividend levels). So as with the other big banks, the worst is behind Westpac and there are increasing profits to be had lending.  As with the NAB and ANZ results, Westpac's story for 2009-10 is not about bad debt provisions and write-offs and lower profits. It's all about riding an economy that will be growing 2% faster than the federal government believed in May, and possibly more. /091104/21/fi4m.html Wed, 04 Nov 2009 21:10:00 GMT http://au.rd.yahoo.com/rss/default/*http://nz.biz.yahoo.com/091104/21/fi4k.html Naturally Telstra's chairman and chief executive were called upon by shareholders at yesterday's AGM in Sydney to fight the federal government's plans to force a break up of the company. Media reports said chairman, Catherine Livingstone and CEO David Thodey took dozens of questions from shareholders at AGM on the break up, on former CEO, Sol Trujillo's huge payout, and on that old bugbear, poor service. Both maintained the company line, that they were negotiating and would come back to shareholders for approval. They argued that remuneration is in line with industry standards, but incentive policies have since been tightened; and of course, customer service is paramount to the company, and is constantly being improved. (So why do the complaints keep coming?) But it's the break up idea that is generating the heat. The current newish board and management should thank the federal government. Without the break up issue, shareholders might have gotten even more upset at Mr Trujillo's multi million departure payout and by service questions. A look at the 57 page transcript of the AGM shows the dominant issues. Some shareholders were all bravado, calling for threats of High Court action (and if the High Court upholds the government and Telstra hasn't negotiated a deal, what happens then?)  CEO, David Thodey maintained a construction line was important, as was good faith negotiating, and the need for shareholder involvement: "We remain positively and constructively engaged with the Government on the issues of NBN; positively and constructively engaged, but I want to be very clear, we're under no illusions about the challenges that we face and this company faces," he said in his speech. "We are absolutely committed to acting in the best interest of our shareholders. While we are negotiating with the Government, the ACCC and NBN Co, we have shareholders at the forefront of our mind at everything we do. "We all want certainty as we come out of this process. We want a solution that satisfies the disparate requirements of each of the stakeholders as we work through this and that at the end of the day we will have greater certainty about how we run this business going forward. "It is critically important that we do that. Everything that we do must be in the interests of our shareholders and that will be the only thing that we do, and of course, customers and employees. "This is an extremely complex negotiation as it covers so many different aspects of our business." He added: "Can I promise that a mutually acceptable agreement will be reached? No. "Do I think there is a pathway to such an agreement? Yes. "What I can assure you is that the board and management will not agree to any proposals on the NBN ... or separation ... unless we are convinced that it will deliver fair value for you the shareholders of this company. "In our submission on the bill ( to the Senate inquiry) we said that we opposed the bill in its current form. It is very important to be clear about this. "While we do agree with the NBN vision, we do not agree with the bill in its current form. We believe that the legislation is unnecessary and not helpful at this time for very specific reasons.  "We are not opposed to the bill in its entirety. Of course we'd prefer it never to have happened, but now it is there, we have to take a position on the bill." Mr Thodey reassured investors that whatever the outcome of its talks with the government, Telstra had the core asset to "win in the market". Mr Thodey also emphasised the issue of customer service. "Customer service is very important for us ... and while we have many areas where we can improve ... we are committed to making the necessary changes," he said. The smartest move Telstra made yesterday was scrapping the absurd $2.20 administration fee for people paying their bills over the counter or by mail less than two months after it was introduced on September 14. "We tried to impose this change without first listening to the people it would affect," Mr Thodey said. That's an understatement because Telstra spokespeople argued for it in numerous media situations (interviews on radio, TV and in newspapers). Now it's gone. "That is not consistent with my commitment to put customers at the heart of everything we do," Mr Thodey said. But he said Telstra still wanted to encourage customers to use electronic payment methods. "That being said, I still believe electronic payment is the right way to go ... and we do intend to introduce some electronic-only plans in the future ... it will be your choice if you want to use them," he said. Mr Thodey also reiterated the company's guidance to post low single digit growth in revenue, earnings before interest, tax, depreciation and amortisation (EBITDA) and EBIT in the current financial year. Telstra shares rose one cent to $3.23, still in the same range as it was before the NBN/Separation proposal was made public. And that is something to remember. The big money guys will sell Telstra if there's a bad deal.  Some big shareholders don't like it, but they are a minority and mostly linked to one or two groups of fund managers. Most mainline analysts have holds on Telstra while they sensibly await the details of the deal the company and the government are trying to achieve.   /091104/21/fi4k.html Wed, 04 Nov 2009 21:07:00 GMT http://au.rd.yahoo.com/rss/default/*http://nz.biz.yahoo.com/091104/22/fi8w.html Manila, Nov 4, 2009 - (ACN Newswire ) - The Asian Forum on Corporate Social Responsibility (AFCSR) is recognized as the largest and most significant conference and awards program on Corporate Social Responsibility (CSR) in Asia. It is now celebrating its eighth year and over 400 delegatesfrom 20 countries are expected to attend. The principal hosts of AFCSR 2009 are the Asian Institute of Management Ramon V. del Rosario Sr. /091104/22/fi8w.html Wed, 04 Nov 2009 20:29:00 GMT http://au.rd.yahoo.com/rss/default/*http://nz.biz.yahoo.com/091104/16/fhpg.html WELLINGTON/MELBOURNE, Nov 4 (Reuters) - Australian shares ended up 0.2 percent on Wednesday, helped by banks after Westpac Banking Corp WBC.AX said the bad debt cycle had peaked, while gold miners led gains after gold scaled a new record high. /091104/16/fhpg.html Wed, 04 Nov 2009 06:26:10 GMT http://au.rd.yahoo.com/rss/default/*http://nz.biz.yahoo.com/091104/16/fhoa.html WELLINGTON/MELBOURNE, Nov 4 (Reuters) - Australian shares ended up 0.2 percent on Wednesday, shored up by miners and three of the four big banks, after Westpac Banking Corp WBC.AX said the bad debt cycle had peaked. /091104/16/fhoa.html Wed, 04 Nov 2009 05:36:10 GMT http://au.rd.yahoo.com/rss/default/*http://nz.biz.yahoo.com/091103/26/fhci.html WELLINGTON, Nov 4 (Reuters) - Australian shares rose 0.5 percent in early trade on Wednesday, as miners rose on firmer metal prices and banks gained after Westpac Banking Corp WBC.AX said it saw bad debts peaking. /091103/26/fhci.html Tue, 03 Nov 2009 23:19:30 GMT http://au.rd.yahoo.com/rss/default/*http://nz.biz.yahoo.com/091103/21/fh9q.html Lend Lease's acquisition of the rest of Lend Lease Primelife Group (LLP) it doesn't already own, has received the support of Primelife's independent directors and an independent valuation report.. Lend Lease last week entered into a scheme of arrangement for the acquisition of the remainder of Primelife's issued stock for 31 cents per security. Lend Lease currently owns 43.2% of Primelife, a retirement homes and seniors accommodation provider known formerly as Babcock & Brown Communities Group. The total capital outlay associated with the acquisition is about $170 million, which Lend Lease has said would be funded from existing cash reserves and debt facilities. Primelife yesterday lodged the scheme booklet with the Australian Securities and Investments Commission (ASIC), which includes supporting statements from the independent directors and independent expert Deloitte Corporate Finance. Deloitte concluded that the share scheme and the terms of the unit scheme were fair and reasonable and in the best interests of Primelife security holders and Primelife's independent directors unanimously recommended security holders vote in favour of the proposal at meetings scheduled for December 8. In fact the independent expert's report gave ample reasons why shareholders in Primelife should take the money and run. It argued that without takeover the company would find it harder to reduce gearing to the target range of 20%-25% There was "the requirement of LLP's banks for LLP to reduce bank debt by approximately $100 million to a facility limit of $350m by June 2010; and the need to renegotiate the remainder of the bank facility by 18 December 2010." As well, the company's net debt (comprising bank debt and convertible notes) "as at 30 June 2009 is equivalent to a 44% gearing ratio. "If the Proposal is not approved, the LLP Board's view is that the appropriate amount of additional capital to raise is not less than $300 million, through a combination of an equity raising and assets sales, in order to achieve the target level of gearing. "Compared to the $0.31 cash in the hand offered under the Proposal, the LLP Board has identified in the Booklet a number of concerns about the potential of equity raising and assets sales that will otherwise have to be undertaken if the Proposal is not approved and implemented. "These concerns include: "Equity raising: The risks and uncertainties associated with a highly dilutive equity raising that would need to be priced at a substantial discount to the market price of LLP Securities and would likely result in a material reduction to LLP's NTA and NAV. "Further there is no assurance that LLP would be able to successfully complete a significant equity raising given the risk that a highly dilutive equity raising may not be broadly supported by securityholders, including LLC. "Asset sales: LLP may be required to sell high cashflow yielding assets. The LLP Board is reluctant to initiate large scale asset sales in the current environment because of the potential impact this would have on the LLP business model and future cashflows and gearing." "LLP Independent Chairman, Andrew Love said, "The Proposal offers LLP Securityholders the certainty of cash payment for their stapled securities at a premium to the recent trading price for LLP securities, it  exceeds the net tangible asset backing of an LLP security and it is unanimously recommended by the LLP Independent Directors in the absence of a superior proposal." "The Proposal represents a compelling alternative when considered against the uncertainty and risks associated with a highly dilutive equity raising and the sale of assets in a weak market, which the LLP Board will need to implement if the Proposal does not proceed" Mr Love said." Lend Lease shares were up 6 cents at $9.28 then fell in the afternoon to be down 11 cents at $9.11. LLP securities were steady on 30 cents.   /091103/21/fh9q.html Tue, 03 Nov 2009 21:38:00 GMT http://au.rd.yahoo.com/rss/default/*http://nz.biz.yahoo.com/091030/24/fex7.html Research and Markets(http://www.researchandmarkets.com/research/109c86/indonesia_mining_r) has announced the addition of the "Indonesia Mining Report Q4 2009" report to their offering. /091030/24/fex7.html Fri, 30 Oct 2009 17:30:00 GMT http://au.rd.yahoo.com/rss/default/*http://nz.biz.yahoo.com/091029/22/fefw.html Manila, Oct 30, 2009 - (ACN Newswire ) - The Asian CSR Awards, co-presented by AIM and Intel, is Asia's premier Awards program on corporate social responsibility. This year's awards program attracted 211 entries representing 132 companies from 14 countries. It recognizes and honors companies in Asia for their corporate social responsibility (CSR) projects and programs. The Awards are given in five categories: /091029/22/fefw.html Thu, 29 Oct 2009 21:08:00 GMT