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The National Australia Bank support package for farmers and the decision of BT Financial Group to reduce the costs of its Panorama investment platform are the latest examples of the positive financial impact of the project. Hayne inquiry. for rural customers during a speech delivered Monday to a group of community leaders at an NAB event in the regional Wagga Wagga town.
One of the measures is to remove default interest on loans to farmers affected by drought. NAB 's custom of penalizing farmers with default interest rates while the drought had impeded their ability to repay loans was the subject of careful scrutiny at the time. Hayne inquiry
. The precarious Australian agricultural economy was brought back to normal yesterday when Nufarm announced a drop in its profits due to the drought of 2018 due to prolonged drought in Australia. Nufarm's Australian and New Zealand operations are now expected to post earnings before interest and taxes of $ 5 million to $ 10 million, up from $ 51 million last year.
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The great Nufarm
stated that farmers had anticipated a "normal" winter season, but that dry conditions continued in July, suggesting that 2018 will be one of the most rainy seasons. recorded in many regions. Optimistic expectations and poor conditions led to an inventory explosion that will hurt profits in 2019. Nufarm saw its shares drop by 11 percent after warning of impending deficiencies.
Chanticleer wonders when all those who are linked to the rural sector, from policymakers to farmers, will realize that we can no longer rely on the average historical rainfall definition of "drought". The sooner we give up deceptive long-term averages and look at significant time series of precipitation, the sooner there will be a realistic badessment of the viability of land allocated to agricultural production.
Thorburn's package of measures to badist the rural sector including the equivalent of a home loan clearing account for rural borrowers. NAB agri clients will be encouraged to offset their farm management deposit against their farm loans. This should translate into lower interest rates for rural borrowing and encourage competitors to copy NAB.
The NAB package did not avoid the elephant in the room, which is the inevitable closure of more than 350 rural branches. Thorburn is looking for ways to engage with customers affected by branch closures, including the possibility of introducing bank buses that would occasionally visit rural areas.
BT cuts prices
Brad Cooper, managing director of BT Financial, cuts the costs of the Panorama investment platform with the goal of making a $ 630 million capital investment. The move is expected to encourage more independent financial advisors to use the Panorama platform. The Hayne investigation has highlighted the inability of financial advisors to fulfill their legal obligation to act in the best interests of their clients
It will be very difficult for advisers using platforms more expensive to justify this following Cooper's price cuts. According to industry sources, BT's platform is currently 20 to 40% cheaper than competing products
The potential negative impact on rival trading models is reflected in the stock market with many shares affected by BT. Netwealth is down by 11%, Praemium by 9%, Hub24 by 6.5%, IOOF Holdings by 5% and AMP by 2%
Cooper warned that reducing Panorama's costs could result in $ 70 million. hit at BT's annual income. But it is possible that he is not content to recover the loss of income by gaining market share.
BT holds 18% of the $ 880 billion investment platform market. He just needs to increase his market share by about $ 17 billion to recover the lost income.
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