ABCs and Westpac loan flows move ahead of their peers

CBA and Westpac have reported a larger increase in their mortgage books compared to their peers, while NAB has seen its investor portfolio shrink, the latest APRA data has revealed.

The Australian Prudential Regulation Authority (APRA) released its latest monthly Authorized Depository Institutions (MADIS) statistics for February 2021, which show total resident loans and finance leases increased 0.3% – or $ 9.7 billion.

According to APRA, this was largely due to home loans, spurred by strong demand from borrowers for single-family homes due to low borrowing costs (with interest rates remaining low) and government support measures such as the HomeBuilder grant and the First Home Loan Deposit Scheme (FHLDS).

APRA data showed owner-occupied loans increased 0.5 percent or $ 6.3 billion, and investment loans increased 0.1 percent or $ 800 million. more moderate dollars.

Among the Big Four, the Commonwealth Bank of Australia (CBA) recorded the largest increase in its total mortgage portfolio, from around $ 468.0 billion in January 2021 to around $ 469.9 billion in February, an increase of 0.42%.

The increase is due to the bank’s homeowner portfolio, with loans rising from $ 308.7 billion in January to $ 310.6 billion in February. However, its investor loan portfolio held steady at around $ 159.3 billion in February.

The CBA released its results for the first half of fiscal 2021 in February, which showed that domestic loans increased by 3% in the six months leading up to December 31, 2020, 1.5 times the growth of the system.

CBA CEO Matt Comyn told the Advisor at the time of publishing the results that an increase in the number of applications delayed processing times, particularly towards the end of December 2020 and January 2021.

He added, however, that it was “a little easier” to increase decision speed from a proprietary point of view “because of the wealth of data we have on these clients.”

He continued, “From our perspective, it is important to enable our brokers to do business with us and to ensure that we provide competitive and leading decision making and turnaround time. And I know it’s an Angus focus [Sullivan], who leads retail banking and our third-party team. “

Westpac’s mortgage portfolio grew from $ 406.6 billion in January to $ 408.0 billion in February (0.35% increase), thanks to the increase in its homeowner loan portfolios and investors.

Big bank homeowner loans totaled about $ 231.0 billion in February, up from $ 229.9 billion in January, while investor loans rose from $ 176.7 billion in January to 177. , 0 billion dollars in February.

The National Australia Bank (NAB) home loan portfolio grew 0.20%, from $ 260.8 billion in January to $ 261.3 billion in February.

While NAB’s homeowner loan portfolio increased from $ 159.5 billion in January to $ 160.4 billion in February, its investor loan portfolio grew from about $ 101.3 billion. dollars in January to $ 100.9 billion in February.

Meanwhile, ANZ’s loan portfolio has remained largely stable, with the lender’s total portfolio falling from $ 262.8 billion in January to around $ 263.0 billion in February.

While its homeowner portfolio grew from $ 175.3 billion to $ 175.5 billion between January and February, its investor loan portfolio remained at around $ 87.4 billion.

The latest statistics from APRA coincided with the release of the Reserve Bank of Australia (RBA) financial aggregate data for February 2021, which saw home loan growth of 0.4% (unchanged by compared to the growth rate for January).

The figures (which come from the Australian Bureau of Statistics, APRA and RBA) showed annual home loan growth of 3.8%, up from 3.1% recorded in February 2020.

Total monthly credit growth – which includes housing, individuals and businesses – also remained unchanged at 0.2% in February.

However, total annual credit growth fell to 1.6% in February 2021, from 2.7% in February 2020.

[Related: CBA book boosted by multibillion-dollar OO rise]

ABCs and Westpac loan flows move ahead of their peers


Last updated: March 31, 2021

Published: April 1, 2021

Malavika Santhebennur

Malavika Santhebennur is the Mortgage Securities Reporting Editor at Momentum Media.

Prior to joining the team in 2019, Malavika held positions at Money Management and Benchmark Media. She has been writing about financial services for six years.

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