Home loan figures "positive" for customer owned banks

by Rebecca Pike22 Jun 2018

The latest statistics on authorised-deposit taking institutions (ADIs) show a positive outlook for customer owned banks, according to one association.

The Australian Prudential Regulation Authority (APRA) released the figures, which showed ADIs with more than $1billion in loans saw a 2.2% rise in the number of home loans in the March 2018 quarter compared to the last March quarter.

The Customer Owned Banking Association (COBA) welcomed the figures, saying it was cause for optimism in the second half of 2018.

The figures for non-ADIs showed housing loan growth of 5.5% over the past year and deposits growth of 5.9% over the same period.

Total customer owned banking sector assets have now reached almost $112 billion and an increase of $6 billion over the past year.

In a statement from COBA, it said, "Housing loan growth for customer owned banks has been better than big four banks and above system.

"Deposit growth is more than double that achieved by major banks and above system.

"COBA highlighted the strong results achieved today by mutual banks, credit unions and building societies offering a strong alternative across Australia.

"These results are further evidence that the Banking Royal Commission has made Australians more receptive to banking alternatives and switching their banking.

 

Related stories:
Cities lead fall of property prices
Non-majors continue to take home loan share
Customers want trust, but do they also want brands?