Territory Stories

The Northern Territory news Thurs 14 July 2022

Details:

Title

The Northern Territory news Thurs 14 July 2022

Other title

NT news

Collection

The Northern Territory news; NewspaperNT

Date

2022-07-14

Language

English

Subject

Community newspapers -- Northern Territory -- Darwin.; Australian newspapers -- Northern Territory -- Darwin.

Publisher name

News Corp Australia

Place of publication

Darwin

File type

application/pdf

Use

Copyright. Made available by the publisher under licence.

Copyright owner

News Corp Australia

License

https://www.legislation.gov.au/Details/C2019C00042

Parent handle

https://hdl.handle.net/10070/886186

Citation address

https://hdl.handle.net/10070/886228

Page content

Thursday July 14 2022 BUSINESS 29 V1 - NTNE01Z01MA TERRY McCRANN ANZs plan to buy MYOB is a bad idea for the banking industry and a very bad idea for ANZ specifically. Wayne Byers, the head of the banking regulator APRA, must nip the idea very promptly and publicly in the bud. Thats if he can find the time to tear himself away from devising plans and imposing additional costs on banks read: bank customers to secure them from the ravages of climate change in 2100. The ANZ move is also effectively an announcement that its time for ANZ CEO Shayne Elliott the longest seat-warmer among the big four bank CEOs to move on. The ANZ has been a chronic under-performer in two rather important business segments consumer banking and business banking. Segments, I say? Actually, pretty much the entirety of the business of banks. Whupped in the first by the CBA; although to be fair everyone gets whupped by CBA in consumer banking; and whupped in the second by both CBA and NAB. In very basic terms, by trying to spend an estimated $4bn to buy MYOB, Elliott is effectively announcing hes given up competing and winning or rather, not losing too badly in the, well, banking business. Oh sure, the purchase of MYOB has been spun through the media as delivering a seminal leapfrog ahead of everyone else across a number of key interfaces with customers and potential customers. Supposedly, it would make ANZ a better, slicker bank. Which if true, begs a rather big rather pertinent and even impertinent question: why didnt ANZ do it, say, three years ago? Is that another admission of dozing on the job? What is MYOB? It can broadly be described as an accounting software group. More specifically it operates like a platform on which data can be stored and accessed, imported and exported. Ive personally just accessed a MYOB account to process financial returns. The ANZ sales pitch, and I quote from a media report: would allow ANZ to get its hands on an ecosystem (or platform) that spans not just accounting, but also payroll, quotes and invoicing, and more than 300 apps from third parties, covering everything from ecommerce to customer relationship management. This would supposedly enable the ANZ to tap a lot of data. It would also, and I quote again, give ANZ a big, fat database of potential customers. Hmm. That sort of rings an alarm bell. Im not sure that non-ANZ customers would be too thrilled at becoming a big fat, ANZ, database. There are many problems with the idea. Let me highlight the main ones for the ANZ as an individual bank, for the banking industry more broadly. The all-encompassing one is that banks should stick to their knitting. Their job is to take deposits and make loans and provide associated banking services around that. Its not only their job, its why they get special treatment from the taxpayer. Ill name just two. The first is the $250k government guarantee for bank depositors, under the broader umbrella of being able to operate at very high and quite simply, risky gearing ratios. The $188bn they got lent by the RBA at 0.1 per cent; on which they will collectively make over $15bn of gross profit over the three years they have the money. Furthermore, the last big idea they all had to build more interfaces with bank customers didnt turn out that great: so-called wealth management. A Royal Commission and some tens of billions of dollars later.? It is a very silly idea to not simply get into bed with one software provider, but to actually own it. What next, will the ANZ start building the hardware? Buying its own telco? Indeed, its own broadband network? This is a $4bn really bad idea at any time impact footfall, particularly in the third quarter, and caused sporadic store closures due to staff availability, KMD said. Shares rose 0.5c on Wednesday to close at $1.01, up 0.5 per cent. But the stock is down more than 29 per cent since the start of the year. KMD chief Michael Daly has previously warned the company was being buffeted by inflationary pressures and had to start hiking prices by 5 per cent. On Wednesday, Mr Daly said Rip Curls wholesale and direct-to-consumer retail channels were continuing to perform well. Wholesale order books are above prior year levels as we look forward to next year, he said. Pleasingly, Kathmandu has experienced a record winter promotional period in Australia. Second-half gross margins are well above last year due to a combination of currency benefit and updated promotional execution. Trading in New Zealand was weaker than in Australia, reflecting lower growth in consumer footfall and revenues, offset by improved gross margins reflecting the deliberate strategy to carefully moderate the historic high-low pricing model. Retailer KMD upbeat on winter sales KMD Brands says trading conditions have improved in the second half of 2021-22 after a Covid-affected first half. Picture Mark Brake Kathmandu has experienced a record winter promotional period Michael Daly Unlock more with your full digital subscription. With your digital subscription to the NT News, you also get unrestricted digital access to the Herald Sun for even more national news plus exclusive sports and AFL coverage. Exclusively for full digital subscribers Sign up or activate your digital subscription today. Call 1800 156 746


Aboriginal and Torres Strait Islander people are advised that this website may contain the names, voices and images of people who have died, as well as other culturally sensitive content. Please be aware that some collection items may use outdated phrases or words which reflect the attitude of the creator at the time, and are now considered offensive.

We use temporary cookies on this site to provide functionality.
By continuing to use this site without changing your settings, you consent to our use of cookies.