National home loan portfolio reaches new high

by Miklos Bolza03 Jan 2017
The total loan portfolio of Australia’s banks has now reached $1.51 trillion, increasing by 0.65% from October to November.
 
In its latest Monthly Banking Statistics, the Australian Prudential Regulation Authority (APRA) found that the number of owner-occupier loans increased by 0.69% to $977 billion while investment lending rose by 0.58% to $536 billion. Overall, investor loans made up around 35% of all mortgages.
 
Out of the big four, Westpac and the Commonwealth Bank of Australia (CBA) dominated when it came to writing the most new business, bringing in $2.48 billion and $2.26 billion respectively.
 
The Australia and New Zealand Banking Group (ANZ) wrote an additional $1.71 billion while the National Australia Bank (NAB) wrote $971 million.
 
Westpac and CBA were also the top two for investment lending, with a total investor loan book of $141 billion and $136 billion respectively. ANZ had an investment loan book of $81 billion while NAB had $100 billion.
 
According to Martin North, principal of Digital Finance Analytics (DFA), the 12 month movement for investment portfolios is 3.5%. Although this is lower than the 10% APRA threshold, it has accelerated over recent months.
 
“We think the limit should be dropped, as investment loan momentum is too strong, and well above inflation and wage growth. APRA never really explained why they picked 10% – time for more macro-prudential action!” he said.
 
The owner-occupier and investor loan books for the big four and the top minor banks in November 2016 plus the monthly change can be found below:
 
Bank OO portfolio % change Inv. portfolio % change
Westpac $234 billion +0.63% $141 billion +0.72%
CBA $267 billion +0.44% $136 billion +0.80%
ANZ $157 billion +0.92% $81.0 billion +0.35%
NAB $136 billion +0.44% $100 billion +0.38%
ING $31.3 billion +1.9% $9.12 billion -0.38%
Suncorp $28.8 billion +0.19% $11.8 billion +0.37%
Bendigo and Adelaide Bank $22.6 billion +1.1% $11.5 billion +1.9%
Macquarie Bank $17.5 billion +0.60% $8.87 billion -0.76%
Bank of Queensland $15.9 billion -0.18% $11.4 billion -0.56%
ME $10.6 billion +3.5% $4.83 billion +2.0%
 
Related stories:
 
Mortgage standards a continuing focus: APRA
 
“Big shakeouts” expected for Australian property
 
APRA concerned about “frogs in pots”: Mortgage Choice

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