Support for Australia Post banking move
Four in five investors have thrown their support behind the government-owned Australia Post entering the banking market, reports Sydney Morning Herald. The article continues:
In the latest Investor Pulse survey, a joint venture between the market research group Colmar Brunton and businessday.com.au, a website of Fairfax Media, publisher of the Herald, 78% of investors surveyed agreed that Australia Post should follow its European post offices and enter banking. Australia Post moved into insurance late last year. Of these, 64% agree ”absolutely” with the idea. The rest agreed on the condition that it would not destabilise the big banks.
The findings, based on the views of a panel of 2,000 investors, come on the back of a new round of speculation about Australia Post being poised to set up in opposition to the banks. The minister for communications, senator Stephen Conroy, is said to be looking at changing the legislation to allow the move.
The survey is the best indication yet that there is a ready pool of customers waiting to support the move.
The survey also shows the level of investor dissatisfaction with the banks and concern about the dwindling competition in banking.
More than 61% of investors surveyed believed the $2.9bn cash earnings achieved by the Commonwealth Bank of Australia for the six months to December was a case of ”greed” and not ”good banking practice”.
Investors were also questioned about the removal of the bank guarantee, whether Macquarie Group deserved to use it, and about how much trust they had when looking at the financial statements of the banks.
