Resi lending surges by $5bn

by Miklos Bolza01 Nov 2017
Volumes of residential lending across Australia’s banks have grown by $5bn during the month of September driven primarily by greater volumes of owner-occupier mortgages.

The Australian Prudential Regulation Authority’s (APRA’s) latest Monthly Banking Statistics show that the total volume of residential lending now sits at $1.58trn representing a 0.32% increase from the previous month.

For September, owner occupier lending took up $1.03trn (or 65.2%) of the total residential mortgage book while investor lending sat at $550m (or 34.8%). Owner occupier lending grew by $4.9bn from the month before while investor lending increased by a measly $218m.

The big four banks held just over $1.3trn in residential lending which accounted for 82.6% of total market share between ADIs. Of this, $834.2bn was in owner occupied loans while $469.9bn was in investment lending.

The individual figures for the big four banks in the month of September are as follows:
  Owner occupied (Sept) Owner occupied (Aug) Investor (Sept) Investor (Aug)
ANZ $168.6bn $167.3bn $82.6bn $82.5bn
CBA $277.0bn $275.6bn $133.9bn $134.3bn
NAB $144.0bn $143.1bn $104.2bn $104.0bn
Westpac $244.6bn $243.7bn $149.2bn $148.5bn

Growth was seen in owner occupier lending across all big four banks while investment lending saw growth in all major lenders except CBA.

The following non-majors also reported a significant number of owner occupier and investor loans:
  Owner occupied (Sept) Owner occupied (Aug) Investor (Sept) Investor (Aug)
AMP Bank $9.9bn $9.7bn $2.8bn $2.8bn
Bank of Queensland $16.2bn $16.2bn $11.1bn $11.1bn
Bendigo and Adelaide Bank $22.6bn $22.4bn $11.7bn $11.7bn
ING $33.5bn $33.2bn $9.6bn $9.6bn
Macquarie Bank $18.7bn $18.4bn $8.2bn $8.3bn
ME $12.7bn $12.9bn $5.2bn $5.3bn
Suncorp $28.6bn $29.4bn $11.9bn $12.1bn

Macquarie and ME had a drop in investor lending while Suncorp reported a drop in both investor and owner occupied loans. All other banks remain steady or grew slightly in both loan portfolios.