Westpac Banking Corporation
(ASX:WBC) and St George Ltd have today announced a reduction in bank penalty fees across credit cards, personal accounts and business accounts.
From the first of October, Westpac and St George will reduce a range of penalty fees to $9. This includes account overdrawn fees, outward dishonour fees, periodic payments not made, and credit card missed payment and over the limit fees.
Westpac says the reduction in fees is expected to impact the group’s full year revenue in fiscal 2010 by approximately $300 million, with the impact on cash earnings and reported profit expected to be around $210 million.
The move follows that of rival NAB who announced plans to cut the entire overdraft fee for personal customers from the first of October. Westpac’s profits have been increasing year on year for the past four years.
Supermarket chain Woolworths Ltd (ASX:WOW) has reportedly announced plans to team up with Optus to enter into the mobile phone market.
Business Spectator is reporting that Woolworths is to launch the Woolworths Everyday Mobile brand, a pre-paid service that will offer a flat rate for voice calls of 15 cents flagfall and 15 cents for every 30 seconds.
The new no-frills pre paid service designed for customers who want a straight forward pre-paid mobile offer will have no hidden costs, no caps, no peak or off peak rates and no lock in contracts, says Woolworths.
According to Business Spectator, Vicky Brady, managing director of Optus wholesale and satellite says together Optus and Woolworths have developed a fantastic product.
Saying that with Optus' operational expertise, flexibility and the reach of the Optus mobile network combined with Woolworth's vast distribution and retail footprint the new prepaid mobile offering will be a strong addition to the market.
Woolworths new pre-paid service will use the Optus mobile network. Woolworths 2008 net profit was $1.6 billion.
Gold producer AngloGold Ashanti Ltd (ASX:AGG) says earnings in the second quarter rose 11 per cent after improved performance from its operations in Tanzania and Ghana helped to boost production.
The company says earnings rose to $167 million or US47 cents a share in the three months to June 30, up from $150 million in the previous quarter.
The company produced 1.127 million ounces of gold at a cost of $472 an ounce, compared to 1.103 million ounces at $445 an ounce in the prior quarter.
AngloGold has appointed new management to oversee its operations in Ghana and Tanzania, part of the company’s strategy to ensure appropriate skills at each level in the organisation.
The gold producer has also reduced its hedge book by 1.4 million ounces to less than one years output, in order to realise its strategy of maximising exposure to spot gold prices.
