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Business lending yet to pick up

12 January 2011 5:30PM
Bankers are looking to a revival in business credit demand to provide the basis for growth in the year ahead, but the latest lending figures show continuing weakness in this market.Australian Prudential Regulatory Authority banking statistics for November, published at the end of last month, show growth in business loan portfolios of only 0.05 per cent in the 12 months to November, and a fall of 1.69 per cent over the six months to November.Among the big for banks, NAB led the way - up 8.5 per cent over the 12 months and 10.7 per cent over the six months.Westpac (including St George) was up 8.2 per cent over the 12 months and down 1.13 per cent over the six months. Commonwealth was up 3.7 per cent over the 12 months and was flat over the six months.The outlier was ANZ - down 10.5 per cent over the 12 months and down 9.1 per cent over the six months.APRA's figures for ANZ are at odds with the bank's own figures published in an investor pack for a UK presentation on Monday. Those figures show commercial lending growth of 10 per cent in the 2010 financial year and growth in market share across the commercial, business banking and small business segments.Yesterday the bank clarified the inconsistency between its data and APRA's, saying the apparent decrease in commercial lending "relates to a decision to keep commercial bills on [the] balance sheet instead of re-discounting in the market."This had led to an accounting classification change. The change is reflected through the net increase in the investment securities category in the APRA tables.

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