Banks Are Still Chasing Home Loans

The latest data from APRA on the loan books of the banks shows that in June 2016, housing loans grew by $10.1 billion to $1,471 billion, up 0.69%. Owner occupied loans grew by $8.6 billion and investment loans by $1.5 billion.

Looking at the individual banks, CBA maintains its first place position with owner occupied loans, Westpac, first place on investment loans.

APRA-June-2016-1Loan portfolio movements show that CBA grew its overall book the most. However, bear in mind there were $1.3 billion of adjustments between classifications of loans in the month, so there is noise in the data.

APRA-June-2016-2However, if we take this as right, we can estimate overall investment loans growth. We use the data from the past 3 months, and gross it up to 12 months, to remove some of the noise. On that basis, overall growth is 3.3%, and most players are well within the APRA 10% speed limit.

APRA-June-2016-3

Author: Martin North

Martin North is the Principal of Digital Finance Analytics

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