has reported a 15% rise in home loan sales in the Australian market over the year to September 2014, taking its total loan book to $209 billion – an increase of 7% over the year.
According to APRA’s monthly banking statistics for the 12 months to August 2014, ANZ had the fastest home loan growth among its peers. The major bank now captures almost a quarter (24.3%) of all the Australian major banks’ home loan activity and has had 18 consecutive quarters of above system home loan growth, according to the bank’s full year results breakdown.
"This is another good performance that demonstrates consistent execution of our super regional strategy which is positioning ANZ well in a more constrained operating environment," ANZ chief executive, Mike Smith said.
"We made progress in all our key markets by creating a better bank for all our customers whether big, small, retail or corporate."
The broker channel has grown 1.2 times above system growth, while the proprietary channel sits at 1.0 times above system growth. However, brokers only accounted for 48% of total home loan sales over the year, while branches accounted for 52%. The proportion of ANZ home loans settled by brokers has decreased by 6% since 2012.
In some more positive news, ANZ welcomed 600 new brokers to its premium broker service over the year – an increase of 150%, while it also increased its same day turnaround assessment to 95% for all its premium broker partners.
The bank’s full year results breakdown also revealed that home loans accounted for 68% of the bank’s Australian credit exposure, the average loan size was $352,000, the average LVR was 71% and 45% of its Australian home loan customers were ahead on their mortgage repayments.
Looking ahead, Smith says he expects 2015 to present similar opportunities for the bank with a continuation of a stable and benign credit environment, although he has expressed concern over possible headwinds pending the results of Financial Services Inquiry.
“In Australia and New Zealand the consumer sector remains relatively buoyant however we expect a gradual transition to business led growth as business confidence improves,” he said.
“Another uncertainty is regulation and the outcome of the Financial System Inquiry in Australia. It is perhaps not widely understood that Australia’s financial system has been strengthened significantly since the GFC and our major banks are now stronger and safer than ever. While everyone benefits from a well-capitalised, well managed banking system – consumers, shareholders and taxpayers – there is a real cost to the economy of ever more restrictive regulation and policy settings. It is not in Australia’s interest for its financial system to be globally uncompetitive.”