Residential lending up $7bn

by Miklos Bolza01 Dec 2017
Volumes of residential lending across Australia’s major and non-major banks have risen by more than $7bn during the month of October with growth driven primarily by owner occupied lending.

The Australian Prudential Regulation Authority’s (APRA’s) latest Monthly Banking Statistics report shows that the total volume of lending now sits at $1.59trn, an increase of 0.46% from the previous month.

For October, owner occupied lending was worth $1.04trn or 65.3% of the total residential mortgage book while investment lending sat at $551bn or 34.7% of the total book. Owner occupied lending grew by $6.4bn from the month before while investment lending only increased by $0.8bn.

The big four banks held $1.31trn in residential lending, accounting for 82.6% of the total loan book. Of this, $839.1bn was in owner occupied lending while $470.7bn was in investment lending.

The individual figures for each of the big four banks in October are as follows:
 
  Owner occupied (Oct) Owner occupied (Sept) Investor (Oct) Investor (Sept)
ANZ $170.1bn $168.6bn $82.8bn $82.6bn
CBA $278.6bn $277.0bn $133.9bn $133.9bn
NAB $144.8bn $144.0bn $104.5bn $104.2bn
Westpac $245.5bn $244.6bn $149.5bn $149.2bn

Growth was seen in owner occupied lending across all big four banks while investment lending was on the rise at all majors except CBA where it remained stable.

The following non-major banks also reported significant volumes of owner occupied and investment lending:
 
  Owner occupied (Oct) Owner occupied (Sept) Investor (Oct) Investor (Sept)
AMP Bank $10.1bn $9.9bn $2.7bn $2.8bn
Bank of Queensland $16.3bn $16.2bn $11.1bn $11.1bn
Bendigo and Adelaide Bank $22.7bn $22.6bn $11.7bn $11.7bn
ING $33.9bn $33.5bn $9.7bn $9.6bn
Macquarie Bank $19.1bn $18.7bn $8.2bn $8.2bn
ME $13.2bn $12.7bn $5.2bn $5.2bn
Suncorp $29.0bn $28.6bn $11.9bn $11.9bn

All the above non-majors experienced an increase in their owner occupied loan books. In the investment space, loan book volumes were mostly steady except for AMP where they fell and ING where they rose.

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