Brendan Sproules's questions to ANZGY leadership • Q4 2023
Question
Inquired about the demand for debt in the institutional and commercial businesses, noting the strong lending margins but slower growth. He also asked for a comparison of the mortgage pricing dynamics in New Zealand versus Australia.
Answer
Executives stated that institutional loan demand slowed in the second half as customers became more cautious, but they expect it to pick up later next year, driven by M&A and sustainable projects. In commercial, they see softness in some sectors but are positive overall, targeting growth in favorable industries like agriculture and manufacturing. Regarding New Zealand mortgages, they noted that competition has moderated more than in Australia, with front-book NIM actually improving in the second half as the market returns to normal.