Briefs: NAB to withdraw cashbacks, margin loan numbers collapse, Pepper prices ABS, and more

NAB will follow Commonwealth Bank and withdraw its cashback offer with mortgages. From June 30, cashbacks will not be available on new NAB loans. NAB chief executive Ross McEwan conceded that the bank is writing home loans below the cost of capital. Comparison sites have reported that a number of lenders have dropped their cashbacks over the past month, although more than 30 lenders still offer them.
The number of investors with margin loan accounts fell to 89,000 in the December quarter – the lowest number since 2001. What was once a niche lending business with steady growth took a big hit during the financial crisis and has never recovered. Reserve Bank figures show loan balances of A$15.2 billion were down 8 per cent over 12 months.
Pepper Money has completed its third public securitisation for the year, pricing A$723.3 million of asset-backed securities. The deal was upsized from $620 million at launch. Fund raised under the transaction, SPARKZ 6, will support Pepper’s asset finance business. Pricing ranged from a margin of 160 bps for the A1-x notes to 900 bps for the F notes.
Commonwealth Bank has created a new role, personal finance expert, and hired Nine journalist Jessica Irvine to do the job. Irvine had a long career at the Sydney Morning Herald, where she covered economics and personal finance. Banks have been adding personal financial management tools to their retail banking apps in recent years and now CBA is taking the next step.