ANZ reminded investors yesterday that returns will be lower and growth slower in the future as higher capital ratios and the increased cost of funds drag on bank profits.Phil Chronican, ANZ's chief executive for Australia, told a business lunch yesterday that "banking is going to be more expensive due to the higher cost of funds and higher regulatory requirements. "As a result, shareholder returns are going to be lower. "The leverage effect alone will make it much harder for any bank to achieve the returns - in some cases over 20 per cent - that were common in the pre-2007 environment. "Growth is going to be slower by virtue of the lower demand for credit, as borrowers remain more risk averse and choose to pay down debt and save at a greater rate."Chronican reminded his audience that corporate leverage and household credit growth in Australia were now at a 30-year low, while household savings were at a 30-year high.At a time when banks, and customers, "are having to make some painful adjustments", Chronican said, "the reality is [that] only the depositors are going to be better off."ANZ circulated a copy of Chronican's talk, which he delivered to the American Chamber of Commerce in Melbourne.