NAB expects demand for business credit to lift
(9 March 2010 – Australia) National Australia Bank’s chief executive has said that the bank expects to see a return of demand for business credit by the end of 2011.
NAB chief executive Cameron Clyne said there was a strong probability that there would be an increase in the number of small to medium businesses looking to borrow funds by the end of the year.
'We are still confident that by the back half of 2011 there will be credit demand returning,' Mr Clyne said at an Australia-Israel Chamber of Commerce function in Sydney.
'It will not return to pre-GFC (global financial crisis) levels ... it will probably in the area of six to seven (percent growth).'
Mr Clyne's comments echoed what he said when NAB reported its first quarter earnings on February 8.
On Wednesday, Mr Clyne also repeated his opposition to a proposed crackdown on price signalling in the banking industry, which he said could put an end to transparency in the sector.
Banks need to be able to explain their funding costs and the reasons for their pricing decisions, Mr Clyne said.
The NAB chief executive said he was pleased with the bank's recent marketing campaign, built on a premise that it was 'breaking up' with its major rivals.
Since the campaign was launched in mid-February, NAB had experienced 20 percent increase in transaction accounts, a 50 percent increase in credit card inquiries, and a 35 percent increase in mortgage inquiries, Mr Clyne said.
Responses from the other banks, such as Westpac's cutting of some of its mortgage fees, were also welcomed by NAB.
'Obviously we picked a fight and we hoped someone would come,' Mr Clyne said.
'We are still confident that by the back half of 2011 there will be credit demand returning,' Mr Clyne said at an Australia-Israel Chamber of Commerce function in Sydney.
'It will not return to pre-GFC (global financial crisis) levels ... it will probably in the area of six to seven (percent growth).'
Mr Clyne's comments echoed what he said when NAB reported its first quarter earnings on February 8.
On Wednesday, Mr Clyne also repeated his opposition to a proposed crackdown on price signalling in the banking industry, which he said could put an end to transparency in the sector.
Banks need to be able to explain their funding costs and the reasons for their pricing decisions, Mr Clyne said.
The NAB chief executive said he was pleased with the bank's recent marketing campaign, built on a premise that it was 'breaking up' with its major rivals.
Since the campaign was launched in mid-February, NAB had experienced 20 percent increase in transaction accounts, a 50 percent increase in credit card inquiries, and a 35 percent increase in mortgage inquiries, Mr Clyne said.
Responses from the other banks, such as Westpac's cutting of some of its mortgage fees, were also welcomed by NAB.
'Obviously we picked a fight and we hoped someone would come,' Mr Clyne said.
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