Deterioration of the credit markets is resulting in increased commercial lending business at attractive profit margins for the major banks, NAB chief executive John Stewart told The Australian today.
According to Mr Stewart, the arrest in capital markets has resulted in an influx of customers to banks, looking for well-priced debt.
“Margins were wafer thin. But now, if someone comes back to you and they’re not a loyal customer, you wouldn’t take the business unless you get the return,” Mr Stewart said.
“There’s high-margin business out there and lots of it.”