National Australia Bank says it can hold the line against Commonwealth Bank, the country’s largest lender, which is aggressively pushing for share in the lucrative business finance market.
However, NAB’s Andrew Irvine says he is determined it will remain the largest lender. “It is absolutely not [an inevitability],” Mr Irvine toldIt sets the stage for a battle for business customers over the next 12 months. It is a critical segment for the major banks, since the returns from their home loan portfolios have beenUBS analyst John Storey said CBA’s business bank was more profitable than NAB and could be worth $69 billion on a stand-alone basis.
“This is a regime better suited to institutional/business banking where cashflow, capital and domain expertise matter. The sun might finally be setting on the industrialisation of asset-backed retail banking,” he said.Mr Wilson said CBA had “done much better and gained share much faster in business banking” but believed it would be a challenge to knock off NAB as the largest lender in the sector.
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