ANZ grows mortgage book

by AB21 Feb 2018

ANZ grew its Australian residential mortgage book by 10% annualised to $98bn in the December 2017 quarter, despite the clampdown on certain types of lending.

The growth was largely driven by owner-occupied loans, estimated to be 1.2 times faster than the system rate. 

The bank recorded $5.7bn in switches from IO loans to principal & interest products – up from $4.4bn over a year ago – as APRA cracks down on higher risk lending, including IO loans.

Group impaired assets stood at $2.16bn, down by 9.3%. 

ANZ’s mortgage book growth bucks the trend of moderating home loan business among other banks. 

CBA’s home loan growth, for example, moderated to 5.2% in the 12 months to December 2017, lower than the system growth of 6.3%. The bank said it was the result of balancing regulatory requirements, returns, and risk.

However, ANZ has started tightening its assessment and approval of borrowers, a move that could slow its home lending business. 

As Australian Broker reported last week, the bank is clipping the discretion of its frontline mortgage assessors and added "a higher level of approval for some discretions" used in assessing loan serviceability.

Another bank going against the trend of slowing home loan growth is Suncorp. The bank announced last week (15 February) that its total lending grew by 8.7% annualised, with improved growth across both retail and business lending. 

The growth was a turnaround from the 0.34% decline recorded in its lending business for the first half of FY17.

Related stories:

Major banks toughen serviceability assessment

Brokers get bigger share of lender's portfolio

CBA results hit by $575m regulatory costs

COMMENTS

  • by Country Broker 21/02/2018 8:52:51 AM

    An Interesting article , The ANZ have declared that they are interested in the third party channel , that is broker sourced loans , yes they are conservative in their approach , but they are just efficient and quick. That being said the impaired loans have dropped and the book has grown. That seems to make nonsense of the commentary floating around from the commentators and the ratings people like UBS!
    Seems to me the ANZ have done their home work and are making some other of the big 4 banks look average.

  • by Broker 21/02/2018 10:43:30 AM

    ANZ is by far the best major to deal with , they run rings around the other 3 and always have done by offering consistent and efficient service times and they do not over complicate applications like the rest do. BDM's also return calls!