Dear Members,
I have updated MDS Radio with a new recording covering the Dow, XJO and the ASX Top 20.
Click here to watch the presentation.
Best Regards,
Leon Hinde.
Posts Tagged ‘NAB’
USD Index, AUD, Dow Jones, ASX Top 20 and XJO.
Monday, December 21st, 2009NAB To Acquire AXA Fund Management Business
Friday, December 18th, 2009National Australia Bank (NAB) today announced that it has agreed certain key terms with AXA Asia Pacific for NAB to acquire AXA AP’s Australian and New Zealand businesses. AXA AP’s independent directors will recommend to shareholders that they accept NAB’s proposal to acquire all of the shares in AXA AP on terms that value the Australian and New Zealand businesses at A$4.6 billion. MLC and AXA Australia and New Zealand are among the most trusted financial services brands in Australasia, and collectively hold more than A$144.3 billion in funds under administration and management. Under the terms of the Proposal, AXA AP shareholders (other than AXA SA and its subsidiaries) will have the option to receive either A$6.43 per share in cash; or A$1.59 in cash and 0.1745 NAB shares for each AXA AP share. In addition, AXA AP shareholders will receive up to 9.25 cents dividend for their AXA AP shares in relation to the second half 2009 results. The shares issued under the Proposal will also be entitled to receive NAB’s interim dividend payable in July 2010. The Proposal will provide AXA AP shareholders with the certainty of an all cash option. The Proposal will also offer AXA AP shareholders (other than AXA SA and its subsidiaries) the flexibility to receive part of their consideration in NAB shares and participate in the benefits of the combined business. The consideration is proposed to be funded from a combination of an equity raising of approximately A$1.5bn, the scrip offer and existing capital resources.
NAB will acquire 100 per cent of AXA AP’s shares, valuing the Australian and New Zealand businesses at A$4,610 million. AXA AP shareholders (other than AXA SA and its subsidiaries) will have the ability to elect to receive consideration of $6.43 in cash or A$1.59 in cash and 0.1745 NAB shares for each AXA AP share.
Commenting on the transaction, NAB CEO Cameron Clyne said: “The proposed merger of our Wealth business and AXA Australia and New Zealand would combine two successful and highly complementary businesses, and will achieve attractive scale benefits in the Australian superannuation, retirement income and insurance markets. The Proposal is consistent with NAB’s strategy of growing its wealth management franchise, most recently demonstrated through the acquisitions of Aviva Australia and a strategic alliance with JB Were. Indeed, integrating these businesses and AXA Australia & New Zealand is expected to deliver substantial synergy benefits and will provide a better outcome for customers and advisers, with access to a broader range of quality investment and insurance products.” NAB Group Executive NAB Wealth and MLC Australia, Steve Tucker said: “The acquisition of AXA AP’s Australian and New Zealand business would be a transformational step in our journey to deliver the best possible wealth products and services to our clients and advisers. The Proposal will significantly grow our number of aligned advisers as well as enhance our relationships in the external financial adviser (EFA) market and we are committed to supporting them with quality insurance and investment products.”
National Australia Bank Acquires Challengers Mortgage Business
Wednesday, August 19th, 2009National Australia Bank (NAB ) today announced it had reached agreement to purchase the mortgage management business of Challenger for $385 million. The purchase includes the PLAN, Choice and FAST mortgage aggregator businesses and Challenger’s multi-brand ‘white label’ product capability. In addition, a select portfolio of approximately $4 billion of residential mortgages will be acquired at a discount to face value for loan loss provisions. The acquisition is expected to be earnings and return on equity accretive in the first year.
National Australia Bank Group Chief Executive Officer, Cameron Clyne said: “As I have said previously we will take advantage of compelling opportunities to enhance our organic growth capabilities. This acquisition provides additional distribution and capability in Australian mortgages,” he said. NAB Personal Banking Group Executive, Lisa Gray said: “The acquisition of the Challenger mortgage management business increases NAB’s presence in the important broker distribution segment. As part of NAB the Challenger mortgage management business will have the capacity to grow and support its broker networks. “The existing management team will be retained and continue to run the business as a separate entity reporting to NAB Broker within NAB Personal Banking,” she said.
The total purchase price of $385 million includes the amount payable if approximately 41% of Homeloans Ltd is acquired.
National Australia Bank Acquires JB Were’s Private Wealth Management
Thursday, July 30th, 2009National Australia Bank (NAB) and Goldman Sachs JBWere (GSJBW) today announced an agreement for NAB to acquire 80.1% of Goldman Sachs JBWere’s private wealth management business in Australia and New Zealand, which will be branded JBWere, with Goldman Sachs JBWere retaining the remaining 19.9%. JBWere will remain a centre of specialist expertise, focused on delivering advice driven wealth solutions to high net worth clients, and become a portfolio business of NAB’s wealth division, MLC & NAB Wealth. The alliance incorporates a strategic distribution relationship which enables GSJBW to distribute certain products to JBWere on an exclusive or preferred basis.
NAB will outlay $99 million for JBWere, with additional performance related consideration payable dependent on revenues generated by the business over a period of three years. The contribution to NAB Group earnings and ROE is not expected to be material in the first year.
JBWere is a leading wealth advisory business with more than 22,000 active client relationships, assets under advice exceeding $38 billion, and funds under management of around $10 billion. JBWere advisers will retain full access to the existing range of services, investment research and products currently available through Goldman Sachs JBWere, as well as accessing additional services from NAB and MLC.
“JBWere’s pre-eminent reputation for providing wealth management services to high net worth individuals and National Australia Bank’s strong footprint in business and private banking is a great combination,” National Australia Bank Group Chief Executive Officer Cameron Clyne said. “Our Australian Wealth business, MLC & NAB Wealth, has a long history in developing and nurturing wealth management businesses that service private wealth and institutional clients under their own distinct brands, including JANA and Godfrey Pembroke. “At the NAB strategy update in March, I indicated private wealth was a business with significant upside and JBWere adds to our capability and brands in that area,” Mr Clyne said.
NAB Share Purchase Plan Again
Monday, July 27th, 2009National Australia Bank (NAB) announced on the 22/7/2009 that they would be conducting a Share Purchase Plan to raise additional capital. The record date was the 27/7/2009 on which shareholders must own the share to participate in the SPP. The closing date is 21/8/2009. Shares will be issued on 31/8/2009 and begin trading soon after. A maximum of $15,000 can be purchased by each shareholder at $21.50 or the volume weighted average price (VWAP).
Discount : 3.5% Liquidity : Good Profitability : Good Stability : Good
* Note: Discount is based on the closing price on the 24 July 2009.
For More Share Purchase Plans go to http://blog.mdsfinancial.com.au/category/share-purchase-plans/
To Buy Shares And Participate in Share Purchase Plans … use Trader Dealer http://www.traderdealer.com.au/
NAB Share Purchase Plan Again
Monday, July 27th, 2009National Australia Bank (NAB) announced on the 22/7/2009 that they would be conducting a Share Purchase Plan to raise additional capital. The record date was the 27/7/2009 on which shareholders must own the share to participate in the SPP. The closing date is 21/8/2009. Shares will be issued on 31/8/2009 and begin trading soon after. A maximum of $15,000 can be purchased by each shareholder at $21.50 or the volume weighted average price (VWAP).
Discount : 3.5% Liquidity : Good Profitability : Good Stability : Good
* Note: Discount is based on the closing price on the 24 July 2009.
For More Share Purchase Plans go to http://blog.mdsfinancial.com.au/category/share-purchase-plans/
To Buy Shares And Participate in Share Purchase Plans use Trader Dealer http://www.traderdealer.com.au/
ANZ, NAB front-runners to buy Suncorp assets
Monday, July 6th, 2009The Australian is reporting today that the ANZ and NAB are the most likely candidates to buy Suncorp’s banking assets, worth $7.7 billion.
If this is the case, the buyers may be up against some opposition from the ACCC, which is thought to be uncomfortable with the prospect of more regional banks being taken over by the big 4.
If the major banks are excluded from the race, Suncorp may have to mark down its asset values in order to find a buyer among the regional institutions.
Last week Suncorp appointed Patrick Snowball as its new CEO, and became the first Australian bank to stipulate that its CEO must buy shares in the company. Mr Snowball will have to buy $500,000 worth of Suncorp shares at his own expense.
ASX Code: SUN
Chart from Market Analyser – click here for a free 14-day trial!
For more details on this news story:
- The Australian: “Suncorp in a price vice for bank asset sell-off”
National Australia Bank Acquires Aviva Wealth Management Business
Tuesday, June 23rd, 2009National Australia Bank(NAB) has agreed to purchase Aviva Australia Holdings’ wealth management business including its life insurance operations and investment platform, Navigator, for $825 million. The acquisition is expected to be earnings per share and return on equity accretive in the first full year following acquisition (excluding estimated integration costs). Prior to completion Aviva Australia Holdings will pay a $40 million dividend.
“This acquisition will enhance our offering in key wealth management segments including insurance and investment platforms, adding scale, efficiency and new capabilities to our operations,” National Australia Bank Group Chief Executive Officer Cameron Clyne said. “The acquisition meets the objectives outlined in the NAB Strategy earlier this year. Our MLC and NAB wealth management business is a key area of growth for us and we are well positioned to respond to changes currently taking place in the wealth management market as a result of the financial crisis and regulatory reviews,” he said. “Aviva has strong relationships with and understanding of the external financial adviser (EFA) market and we are committed to continue to support EFA advisers with quality insurance and investment products.”
The acquisition is subject to regulatory approvals and confirmation from the ACCC that it has no objection, and is expected to be completed during the fourth quarter of 2009. The acquisition excludes Aviva’s asset management business and its interest in the Professional Investment Holdings business.
CBA earns $1bn, slashes dividend
Wednesday, May 13th, 2009In disappointing news for shareholders, the CBA plans to slash its dividend by 25% to $1.15 a share, in an effort to protect itself from the impact of the weakened economy, rising unemployment and a slowdown in credit demand.
In a trading update released today, the Commonwealth Bank announced cash earnings for the March quarter were $1.15 billion, creating a cash return on equity of more than 15%.
Optimistically, Commbank Chief Executive Ralph Norris said that while the economic conditions remained challenging, the global financial markets were no longer in freefall.
The dividend cut follows similar cuts made recently by the ANZ, NAB and Westpac.
ASX Code: CBA
Chart from The Bourse
For further information:
Banks doing quite nicely, thanks to you
Wednesday, February 11th, 2009Retail customers are propping up the profits of the big four banks, according to The Age.
CBA has reported a 9% rise in first half profit, due mainly to retail banking offsetting declines in business banking and a jump in bad debt charges.
Among the key figures:
- deposit growth of 22%
- 34% increase in income from home loans
This has led the paper to describe a lively scene of bank chiefs feasting on their retail customers while sending parcels of caviar and truffles to the likes of Fast Eddy .
Click here to read the full article.
Stocks for your watchlist:
- Commonwealth Bank of Australia: CBA (ASX)
- Westpac: WBC (ASX); WBK (NYSE)
- National Australia Bank: NAB (ASX)
- ANZ Banking Group: ANZ (ASX)
