24 Feb, 2016

Westpac Update & Possible New Hybrid

By |2016-02-24T00:49:37+11:00Feb 24, 2016|Hybrids|

Westpac released its first quarter 2016 capital and asset update (Pillar 3) on Friday. The common equity tier 1 (CET1) ratio improved by 0.7% to 10.2% on an APRA basis and is 14.3% on an internationally comparable basis. Total capital increased by 0.6% to 13.9% and the capital stack saw a modest reduction in additional tier 1 (AT1, from 1.9% [...]

16 Feb, 2016

New Issue: PERLS VIII – Do Not Subscribe

By |2016-02-16T05:12:58+11:00Feb 16, 2016|Hybrids|

New Issue: PERLS VIII - Do Not Subscribe On the 16th of February 2016 the Commonwealth Bank of Australia (CBA) announced a new transaction, PERLS VIII (Prospective ASX Code: CBAPE). The purpose of this transaction is to provide funding for the group but more specifically it will be treated as additional Tier 1 capital for regulatory purposes. The indicative size [...]

16 Feb, 2016

PERLS III Holder Options

By |2016-02-16T01:59:03+11:00Feb 16, 2016|Hybrids|

On the 16th of February 2016, The Commonwealth Bank of Australia announced that it will redeem PERLS III and offer investors a rollover into PERLS VIII.   The options for investors holding PERLS III (ASX code: PCAPA) 2016 are: 1. Exchange PERLS III for the new PERLS VIII issue; 2. Redeem PERLS III ($200 face value plus last dividend ) for cash; 3. [...]

15 Feb, 2016

NAB First Quarter Trading Update

By |2021-09-24T10:48:05+10:00Feb 15, 2016|Research|

As we expected, National Australia Bank released relatively moderate results with no major surprises in their first quarter trading update. Cash earnings from continuing operations were approximately $1.7 billion up 8% up on the prior corresponding period primarily driven by improved lending volumes, a higher net interest margin and stronger wealth results. Additionally, bad and doubtful debts fell 52% for [...]

11 Feb, 2016

Mirvac Update – Half Year Results 2016

By |2021-09-24T10:48:05+10:00Feb 11, 2016|Research|

Mirvac Group (MGR) continues to have a strong business profile with a healthy pipeline of new developments and projects. Although the results for the first half of financial year 2016 were somewhat disappointing (although in line with expectations), the group expects operations to improve as non-strategic asset sales are finalised and a significant skew of residential settlements are realised in the [...]

11 Feb, 2016

Goodman Update – Half Year Results 2016

By |2021-09-24T10:48:05+10:00Feb 11, 2016|Research|

Goodman Group's (GMG) first half result was strong with an operating profit before interest and tax of $452.3 million up 28% on the prior corresponding period. All divisions contributed but the development and asset management segments were the standout performers with reported EBIT growth of 39% and 66% respectively. The investment segment remains the largest contributor (43%) but growth was [...]

11 Feb, 2016

Suncorp Update – Half Year Results 2016

By |2021-09-24T10:48:05+10:00Feb 11, 2016|Research|

Since restructure to a non-operation holding company (NOHC) in 2011 the Suncorp group has gone from strength to strength. However, situation today is similar to the pre-GFC era where it is difficult for a regional bank to be competitive against the majors in mortgage lending. Over the past few years they have been successful in improving their net interest margins but [...]

23 Nov, 2015

Buy recommendation on Qantas bonds confirmed

By |2015-11-23T01:46:12+11:00Nov 23, 2015|Bonds|

Last week Standard and Poors announced the upgrade of Qantas' credit rating and its long awaited return to Investment Grade. This is a significant achievement given the overall slowdown of the Australian economy and is something which has been years in planning. As stated in our previous research notes, following weak FY14 results Qantas' management launched a thorough, all-encompassing transformation program which aimed to streamline the company [...]

22 Oct, 2015

Aurizon Holdings: Update a costs reduction story

By |2015-10-22T00:02:36+11:00Oct 22, 2015|Bonds|

Aurizon held its investor day on October 7th, at which it outlined its transformation program to deliver further cost reductions and productivity benefits totalling $310-$380m for the 3 fiscal years FY16 to FY18, which are crucial to achieve its target of delivering an Operating Ratio (OR) of 70% by FY18, ie an EBIT margin of 30% (versus an OR of 74.3% [...]