(11 May 2004 – Australia) Westpac appears to have stemmed a run of market share losses in Australia’s business banking markets, improving its performance in this commercial market segment at the same time as consolidating its position among Australia’s Top 500 corporates, according to East & Partners.East’s latest research into Australia’s business or commercial banking market
(companies turning over A$20 – 340 million per annum) shows Westpac recovering
from a significant drop in market share six months ago to claim 18.8 percent of
primary relationships this time around. The Bank is also continuing to grow its
share of secondary transaction banking relationships.
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On the day when Westpac announces its interim half-year profit, East principal
analyst Paul Dowling said the Bank appeared to be making strides in customer
acquisition once more.
“The commercial market segment is extremely buoyant and aggressive compared with
the currently subdued big end of town and banks ignore it at their peril.
Westpac seemed to be doing this for some two years – particularly the lower end
of this market – but our results indicate something of a turnaround is
underway,” Dowling said.
“The bank still trails the other major domestics in key area of customer
performance such as Client Relationship Management and has further work to do.
But our latest customer research findings indicate Westpac has improved its
performance across other key metrics such as Understanding Business Needs,
Proactivity and Loyalty to the Relationship. High performance in these measures
invariably results in increased market share.”
Westpac is the leading bank to the Top 500 Corporate segment, owning more than a
quarter of primary transaction banking relationships [see Table below].
It also leads the Big Four as principal corporate banker, although remains some
distance behind the specialist investment banks in key Advisory, Equity Raising,
M&A and Capital Structuring services, as is expected from what is essentially a
commercial banking model in the “top end” of town.
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