National Australia Bank has the largest business deposits market share

NAB leads the market with 23.9%.

According to East & Partners, NAB has the largest share of business deposits of all Big Four banks and has also re-asserted its position as the number one ranked lender to Australian businesses.

Here' more from East & Partners:

East’s Deposit Funding and Debt Index (DFDI) measures bank market share of business and retail lending and deposits on a monthly basis. It also delivers leverage ratios across Micro, SME, Corporate and Institutional business segments. The index also delivers DFDI ratios for individual banks.

The June DFDI report shows that in terms of business deposits, NAB leads the market with a 23.9 percent market share followed by CBA (21.5 percent), Westpac (20.8 percent) and ANZ (13.7 percent). The analysis also shows that in the three years since May 2010, CBA has given up leadership of the business deposits market to NAB. CBA’s market share fallen over that period from 24.1 percent to the current 21.5 percent.

Of the other major banks, Westpac’s market share is at exactly the same level as it was in May 2010, while ANZ has slipped from 16.2 percent to 13.7 percent. Collectively, the Big Four’s share of the business deposits market has fallen from 83.6 percent to 79.9 percent over the same period.

In business lending, NAB has the number one ranking with – coincidentally – a 23.9 percent market share, with CBA the number two ranked lender with 18.8 percent. ANZ has 16.9 percent and Westpac 16.0 percent.

A look back over DFDI reports to May 2010 shows that while NAB has grown its lending market share from 19.2 percent to 23.9 percent over that three year period, and is the main reason the Big Four’s collective market share has increased from 71.2 percent to 75.6 percent over the three years.

East also looks at the retail lending and deposit markets in the DFDI report, which reveals that while NAB dominates the business markets, CBA is the main player in retail. According to the June DFDI, CBA enjoys a market leading 28.8 percent share of retail deposits, and 26.9 percent of retail lending.

Lachlan Colquhoun, Head of Markets Analysis at East & Partners, said the DFDI results delivered an invaluable insight into the competitive positioning among the Big Four in the critical deposits market.

“NAB has consistently been known as the main lender to business, but the DFDI also shows that it has fared very well in the deposit war among businesses as well,” said Colquhoun.

“We also see CBA making major inroads into business deposits at the expense of ANZ, while Westpac’s market share has been eroded by NAB.”