National Australia Bank Ltd (ASX:NAB) says business credit demand is expected to remain subdued in the short term and improve in the second half of 2011.
At its annual review NAB says there are emerging signs of sustained improvement even though the credit environment remains unclear, reflecting economic and political uncertainty.
Executive director finance Mark Joiner advises credit spreads have moderated from the same period in 2009 but still remain well above pre-crisis levels.
Looking ahead NAB says it will continue to focus on the development of the Australian franchise, keeping its balance sheet strong, investing in its people, and managing its efficiency and cost agenda.
Last week NAB raised its variable mortgage rate by 43 basis points to 7.67 per cent, following the Reserve Bank of Australia hiking its official cash rate by 25 basis points.
National Australia Bank's 2010 financial year result jumped 63 per cent to $4.22 billion in the year to 30 September.
NAB Price at posting:
$24.64 Sentiment: None Disclosure: Held
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