East & Partners

ANZ’s share of business lending drops in 2004

(26 October 2004 – Australia) As background to today’s market results, ANZ’s share of business lending to both Australia’s Corporate and Commercial market segments has fallen over the past 12 months, East & Partners research shows.

ANZ’s share of wallet – ANZ’s share of its primary business customers’
overall spend with banks – has also dropped significantly in both segments.

East & Partners principal analyst Paul Dowling said the business lending market
in Australia continued to grow but had become increasingly competitive.

“There’s been some evidence of ANZ shifting accounts it no longer wanted as well
as some disconnect regarding whether product specialists or relationship
managers own the relationship with its business customers,” he said.

“A lot of our competitive pitching data shows that ANZ is among the most active
chasers of new accounts. If existing customers are being neglected as a result,
loss of wallet share can only be expected,” Mr Dowling said.

ANZ Market Share Trend
Current 6 Months
Ago
12 Months
Ago
Corporate & Institutional Market
Short Term Domestic
Lending
Primary Relationship Share 19.2 20.3 21.9
Average Customer Wallet Share 78.7 85.5 89.5
Long Term Domestic Lending
Primary Relationship Share 19.5 21.0 23.2
Average Customer Wallet Share 88.8 91.1 90.3
Commercial Market
Short Term Domestic
Lending
Primary Relationship Share 16.8 16.5 19.0
Average Customer Wallet Share 80.5 86.1 91.3
Long Term Domestic Lending
Primary Relationship Share 14.4 14.9 16.2
Average Customer Wallet Share 66.5 70.0 78.9

Notes:

– Primary Market Share means percent of customers with principal lending
relationships with ANZ.
– Average Customer Wallet Share means average percent of customer’s total
business.
– Corporate & Institutional Market is defined as the Top 500 corporates in
Australia based on annual revenues.
– Commercial Market is defined as enterprises turning over A$20-340 million per
annum.

For more information please contact:

Paul Bartholomew
Senior Consultant
Tel: +61-2-9222 1588
Mob: +61-410 400 156
paul.b@eastandpartners.com

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