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Banks Gear Up for Resurgent Business Credit Growth

Banks Gear Up for Resurgent Business Credit Growth

(9 May 2024 – Australia) Westpac, ANZ and NAB have all predicted business credit demand will surge higher over the next six months in recent half year earnings results.

Manufacturing and energy sector verticals in particular are in the box seat to benefit directly from elevated fiscal support despite criticism from the Reserve Bank of Australia (RBA) that rising government stimulus measures are thwarting efforts to stifle stubbornly high inflation.


“There is a real appetite to grow businesses, and owners are looking to get financing to grow their business. It is quite broad-based across agribusiness; property, particularly property development; professional services and healthcare, that is where there is a really positive pipeline” commented Westpac Executive Anthony Miller.


“The market for business lending is no more or less competitive than it ever has been even as all big four lenders fight harder for business borrowers. Westpac is not focused on outgrowing our peers but growth with specific customers we want as customers. I don’t fall into the idea that growth must be relative to system” Miller added.


“SMEs are thinking about long-term investments in their business and will not baulk at gearing up if interest rates remain high for longer. Notwithstanding the noise and uncertainty we might see in the next 12 months, they are clear about their longer-term plans” he said.


“Business credit growth has run seven percent higher year-on-year, the fastest growth in recent memory” commented ANZ CEO Shayne Elliott.


“If you asked me six months ago, as the previous head of the business and private bank, if I would have printed nearly nine percent business credit growth, I would have said there is no chance” stated NAB CEO Andrew Irvine after the bank delivered H1 business credit growth of nine percent.

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