Business lending and deposits steady: ANZ
(2 March 2007 – Australia) ANZ described its business banking division as maintaining "steady lending and deposit growth" for the first four months of the 2007 financial year.
However, the bank said increasing volumes were being partially offset by margin compression.
Debt and Transaction services were impacted by declining credit spreads and competition was impacting lending fees.
"Markets and Corporate and Structured Finance are performing well in terms of revenue growth, however, within Markets a greater proportion of that revenue will be booked as trading income rather than interest income compared to the second half of 2006 and this will impact reported margins," ANZ said in a shareholder update.
The bank said it was on track to meet forecast revenue growth of seven to 10 percent for 2007 with expense growth towards the upper end of the five to seven percent range.
"Revenues are now tracking at record high growth rates, partly as a result of higher investment spending," ANZ chief executive John McFarlane said.
Debt and Transaction services were impacted by declining credit spreads and competition was impacting lending fees.
"Markets and Corporate and Structured Finance are performing well in terms of revenue growth, however, within Markets a greater proportion of that revenue will be booked as trading income rather than interest income compared to the second half of 2006 and this will impact reported margins," ANZ said in a shareholder update.
The bank said it was on track to meet forecast revenue growth of seven to 10 percent for 2007 with expense growth towards the upper end of the five to seven percent range.
"Revenues are now tracking at record high growth rates, partly as a result of higher investment spending," ANZ chief executive John McFarlane said.
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