ANZ Group is falling behind its major Australian banking rivals in the competition for household deposits, according to a report by the Australian Financial Review.
The lender, led by CEO Nuno Matos for the past 14 months, has seen its market share for household savings erode as the sector-wide battle for deposits intensifies.
This loss of ground distinguishes ANZ from its peers, who have managed to retain or grow their deposit bases amid the same competitive pressures.
The deposit share decline poses a direct risk to ANZ’s net interest margin, as the bank may need to offer higher rates to attract and retain customers, increasing its cost of funds.
This dynamic is particularly challenging given that ANZ recently cut both home loan and term deposit rates in response to falling wholesale funding costs.
While the rate cuts were intended to pass on savings from cheaper wholesale markets, the inability to convert this into deposit growth suggests a disconnect between pricing strategy and customer retention.