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NAB campaign pays dividends

NAB campaign pays dividends

(1 April 2011 – Australia) National Australia Bank’s "break up" campaign earlier in the year is beginning to reap rewards for the bank, as they comprehensively outpaced other major lenders for home loan sales in February. And Westpac and Commonwealth Bank suffered a slide in household deposits, coinciding with NAB's push to distance itself from rivals, new data shows.

Figures released by the banking watchdog shows NAB's mortgage book again grew almost 1 percent in February - more than fourfold the growth rate chalked up by home lending giants Westpac and CBA.

The lender's aggressive push for mortgage growth appears to have also taken a toll at ANZ, despite NAB pitching its campaign largely at Westpac and CBA customers.

Growth in ANZ's mortgage book - now comprehensively the smallest of the major four - fell below 0.5 percent.

But the bank outpaced its key rivals in deposits, clawing in an extra A$502 million in household savings, with NAB nearby on A$430 million.

The Australian Prudential Regulation Authority data lays bare the growing disparity in the deposit market between the smaller banks, ANZ and NAB, and their bigger rivals as competition again swings into overdrive.

Households withdrew a net A$303 million in savings from Westpac - about 0.27 percent of the bank's household deposit book - while CBA shed A$109 million in household savings.

The CBA launched its high-yielding account GoalSaver late in February and last month aggressively promoted the account.
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