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ANZ Banking Group has targeted a 1 per cent gain in market share in its mortgage book and at least 10 per cent annual profit growth in its retail bank by 2010.
Australia's third biggest bank said credit quality was in "good shape", with overall provision rates similar to the same time last year.
Mortgage and credit card arrears are in line with expectations, but higher arrears are occurring in isolated pockets such as western Sydney, the bank said.
ANZ head of retail banking Brian Hartzer said the global credit crunch was costing the bank's mortgage division A$20 million ($23 million) a month, and that the bank was looking at a "number of things" to address the loss.
"One thing is to grow volume more," Hartzer told analysts at an operational briefing.
"Also we've looked at issues around discounting and so forth.
"There are also fees that we need to review.
"But obviously the big thing is pricing of external customer rates and as I said, there's a link to what we can do on that point given the current market, but we don't think the current situation will sustain itself over the long term."
Hartzer said the revenue loss was being offset by the bank's deposit base to the tune of about 25 per cent.
"We get obviously better funding credit on a number of different deposits," he said.
ANZ wants to grow profits in its retail bank faster than the other major banks, and has targeted a compound annual growth rate in earnings of at least 10 per cent.
"We would describe that as an aspirational target," Hartzer told analysts.
"I guess our view is it's hard for us to be all that specific because we don't know.
"We're in an uncertain time in the industry - we don't know how volume growth is going to go, and we're going to be somewhat affected by the level of the sea in terms of how we can go.
"But we do feel we've certainly got as much opportunity as anybody, and we think we've got ability around execution."
AAP
