ANZ says corporate lending on the up
(19 March 2010 – Australia) ANZ has said that corporate lending is growing for the first time in a year, as the strengthening domestic economy bolsters business confidence, Bloomberg News reported.
The ANZ Bank, based in Melbourne, said in its trading update that credit demand from corporate and institutional customers fell in the prior four month period ending January 31st.
However, demand for loans from corporate clients had started to improve in early February, Shane Elliot, group managing director, Institutional Banking, ANZ, said.
Lending profit margins are holding up, even as the economy recovers and liquidity returns, Mr Elliott added.
According to East & Partners’ latest Australian Corporate Banking Markets report, businesses from the Corporate segment (businesses with an annual turnover of A$20 million to A$340 million) intending to borrow in the next six months has increased by 15.2 percent. However, the number of businesses who stated they had no intention to borrow over a six month period, has reduced from 39.1 percent, in July 2009, to 12.9 percent in January 2010.
Mr Elliot added that the bank has also noted a reduction in the number of business borrowers on ANZ Bank’s list of potential defaulters is shrinking.
However, demand for loans from corporate clients had started to improve in early February, Shane Elliot, group managing director, Institutional Banking, ANZ, said.
Lending profit margins are holding up, even as the economy recovers and liquidity returns, Mr Elliott added.
According to East & Partners’ latest Australian Corporate Banking Markets report, businesses from the Corporate segment (businesses with an annual turnover of A$20 million to A$340 million) intending to borrow in the next six months has increased by 15.2 percent. However, the number of businesses who stated they had no intention to borrow over a six month period, has reduced from 39.1 percent, in July 2009, to 12.9 percent in January 2010.
Mr Elliot added that the bank has also noted a reduction in the number of business borrowers on ANZ Bank’s list of potential defaulters is shrinking.
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