Is Loan Book Growth Stabilising?

The statistical release of APRA and the RBA’s credit growth data for April shows a stabilisation in the rate of overall mortgage, personal and business loan book growth at 5 per cent across the overall Australian market. By category, mortgage book growth continued to slow, increasing 6 per cent year over year, while business loan book growth improved a little to 4.4 per cent.

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Telstra & TPG, Who Will Win Share?

TPG has confirmed its intention to build a fourth mobile network in Australia with its successful A$1.26bn acquisition of two 10MHz spectrum licenses in the most recent Government tender. The market’s reaction has been savage, with the share price of the dominant incumbent operator Telstra, falling by almost 10 per cent since TPG’s announcement.

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4 Key Issues For Bank Shares In 2017

The outlook for Australia’s banks in 2017 is now tougher given the rerating of the stocks the last quarter of 2016. The expectations built into share prices have clearly lifted in 2017.  The big change we expect is a slowing of loan book growth. If interest rates have bottomed, affordability of debt will suffer. Market expectations imply a continuation of the growth rates we’ve seen over the past decade or two, but if the cost of debt stops falling this could act as a drag on loan book growth and the broader economy. Funding costs continue to rise, pressuring net interest margins. Slowing loan book growth is also likely to increase competitive pressure as banks look to gain market share as an offset. 

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Aussie Retailers – Could Amazon Go Disrupt You?

Our retailers are about to face a whole new challenge. Amazon has announced it will trial a new concept store in the US that uses its ‘Just Walk Out’ technology to change the format of a traditional grocery store by removing cash registers and the check-out process. Customers simply use the Amazon Go app, then take the products they want, and go. It’s set to come to our shores in late 2017.

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