Monthly banking statistics from the Australian Prudential Regulation Authority (APRA
) show that overall lending by authorised deposit-taking institutions (ADIs) increased by 7.5% to $1.54trn over the 12 months prior to 31 March.
This equated to a 0.47% increase over the month of March. Owner-occupied loans increased by 0.49% to $988bn while investment loans rose by 0.43% to $545bn (making up 35.3% of the total ADI loan book).
Looking at the big four banks, the total loan book plus the breakdown between owner occupied and investor is as follows:
||Total loan book
||Owner occupied loan book
||Investor loan book
For owner occupier lending, the top five non-major banks are below (with the owner occupier loan book in parentheses):
- ING Bank ($32bn)
- Suncorp ($28bn)
- Bendigo and Adelaide Bank ($23bn)
- Macquarie Bank ($18bn)
- Bank of Queensland ($16bn)
For investors, the top five non-major banks are below (with the total investor loan book in parentheses):
- Bendigo and Adelaide Bank ($12bn)
- Suncorp ($12bn)
- Bank of Queensland ($11bn)
- ING Bank ($9bn)
- Macquarie ($9bn)
In an analysis of these figures, Martin North, principal at Digital Finance Analytics, noted that investment lending growth at the major banks fell below APRA
’s 10% speed limit. However, a number of non-majors including Bank Australia, AMP Bank and ME were still recording growth above this benchmark.
“So, the current changes to regulatory settings are not sufficient to control loan growth. Perhaps they are relying on tighter underwriting and rising mortgage rates to clip the speed, but remember many investors are negatively geared, so rising mortgage interest costs are actually born by the taxpayer. The only thing which will slow the loan growth is if home prices start to fall,” he said.
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