Westpac chief reports patchy recovery
(5 July 2011 – Australia) In an update to shareholders Westpac chairman Ted Evans said the timing of the recovery in business lending remained uncertain.
He said patchy economic growth was making companies and customers cautious, and that growth was expected to remain modest and uneven as some sectors performed more strongly than others.
Despite the wariness, Mr Evans said the Australian economy remained in good shape and was being supported by robust growth across Asia.
Mr Evans also zeroed in on business lending, a segment of the market that has failed to fire since the global financial crisis. Banks have been relying on a recovery in business financing to spur profit growth now that housing credit has hit its slowest pace in almost two decades.
Mr Evans said business and consumer confidence was expected to improve gradually through the rest of the year, leading to a rise in lending growth.
''That said, the recovery is likely to be moderate in the short term, particularly as the timing of an upturn in business credit remains uncertain,'' he said.
Despite the wariness, Mr Evans said the Australian economy remained in good shape and was being supported by robust growth across Asia.
Mr Evans also zeroed in on business lending, a segment of the market that has failed to fire since the global financial crisis. Banks have been relying on a recovery in business financing to spur profit growth now that housing credit has hit its slowest pace in almost two decades.
Mr Evans said business and consumer confidence was expected to improve gradually through the rest of the year, leading to a rise in lending growth.
''That said, the recovery is likely to be moderate in the short term, particularly as the timing of an upturn in business credit remains uncertain,'' he said.
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