Investment lending plateaus for banks

by Miklos Bolza01 Sep 2017
Volumes of residential lending have dipped downwards during the month of July, according to the latest figures from the Australian Prudential Regulation Authority (APRA).

The regulator’s latest Monthly Banking Statistics report that the total volume of resi lending sits at $1.58trn. This represented an increase of $5.8bn (or 0.4%) over the month, far less than the $9.8bn increase reported across June.

For July, owner occupier lending again sat at $1.02trn, around 64.9% of all residential lending. This was an increase of $5.1bn (or 0.5%) from the month before.

The remaining $553bn (or 35.1% of all lending) was made up of investment loans. This represented a rise of only $469m (or less than 0.1%) from the month before.

The big four banks held just over $1.3trn (or 82.6%) of the total banking market share remaining unchanged since the previous month. Of this, $829bn was in owner occupied loans while $472bn was in investment lending.

The individual figures for lending at the big four banks are found below:
  Owner occupied (July) Owner occupied (June) Investor (July) Investor (June)
ANZ $166.1bn $165.0bn $82.7bn $82.8bn
CBA $278.4bn $277.3bn $138.2bn $138.7bn
NAB $142.1bn $141.4bn $103.5bn $103.4bn
Westpac $242.1bn $241.3bn $147.6bn $146.8bn

Growth was seen in owner occupied lending across all major banks. Investment lending at CBA and Westpac fell between June and July however.

The following non-major lenders also reported a significant number of owner occupier and investor loans:
  Owner occupied (July) Owner occupied (June) Investor (July) Investor (June)
AMP Bank $9.5bn $9.2bn $2.9bn $2.9bn
Bank of Queensland $16.2bn $16.1bn $11.1bn $11.2bn
Bendigo and Adelaide Bank $22.8bn $22.9bn $11.8bn $11.8bn
ING Bank $32.9bn $32.8bn $9.6bn $9.6bn
Macquarie Bank $18.9bn $18.8bn $8.6bn $8.6bn
ME Bank $12.6bn $12.4bn $5.3bn $5.3bn
Suncorp $29.1bn $28.8bn $12.0bn $11.8bn

Owner occupier lending rose at AMP, Bank of Queensland, ING, Macquarie, ME and Suncorp while it fell slightly at Bendigo and Adelaide Bank. Levels of investment lending went up at Suncorp and fell at Bank of Queensland while remaining stable at the other larger non-major lenders.

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