ING Groep NV’s Australian unit wants to increase deposit funding and limit its reliance on mortgage-backed bond issuance even as costs slide to protect itself from market fluctuations, the lender’s country head said.
Banks may tighten lending standards and buyers turn cautious if a surge in Sydney house prices spreads to other capital cities in Australia, the country head of the nation’s third-largest lender by market value said.
Australia & New Zealand Banking Group Ltd., Australia’s third-largest bank by market value, said its first-quarter cash profit climbed 13 percent from a year earlier on higher lending and lower bad-debt charges.
National Australia Bank Ltd. fell the most in two weeks in Sydney trading after flagging a possible increase in provisions at its British operations, overshadowing a 7 percent increase in first-quarter profit.
Australia’s banking watchdog will stick with its timetable to implement new liquidity rules and won’t widen the range of permissible assets, declining to follow global peers who have softened their stance.