ANZ eyes business lending as it struggles for mortgage growth

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ANZ won’t chase growth in mortgages at any price, but it will need businesses to loosen their purse strings to build its institutional bank.

ANZ chief executive Shayne Elliott says the bank is looking to its powerful corporate lending franchise for growth rather than the fiercely contested mortgage market where competition is set to intensify as the Reserve Bank embarks on a credit tightening cycle.

Milford Asset Management portfolio manager Will Curtayne said it would be difficult for all the banks to achieve growth as interest rates rise and mortgage growth shifts from high-single to low-single digits. Although ANZ stressed it has now added 30 per cent more capacity to process home loans as fast as its peers and meet demand, Mr Elliott said the bank would not chase market share in the highly competitive world of mortgages at the expense of returns to shareholders.Retail and commercial banking grew by 11 per cent compared with the same period of 2021, to $1.986 billion.

“Where will we grow? I think the growth opportunities are much greater outside of home loans because in a rising interest rate environment, home loans are likely to grow slower,” he said. Mr Elliott said predicting how much underlying demand was driving inflation versus how much was a result of supply chain shocks would remain a big challenge.

 

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Translation…I’m desperate and will give blowies for $5

By First Compensating it’s past victims for banking blunders including quick profit making schemes through breach of trust.

They’re struggling for business lending growth too. Who exactly are they going to bank?

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