Home Lending Continues Higher

The latest APRA monthly banking stats to end August 2016 shows that total lending for housing rose 0.53%, equivalent to an annualised rate of 6.41%, well ahead of inflation and wage growth.  Total loans are now $1.487 trillion, up another $7.9 billion in the month.

apra-august-2016-trendsWithin that, owner occupied loans rose 0.63% (up $6bn) and investment loans rose 0.35% (up $1.8bn). Investment loans comprise 35.55% of loans on book, down just a little from last month.

apra-august-2016-trendsLooking at the individual banks, Westpac grew their portfolio the largest, up $2.5 billion, followed by CBA. ANZ reduced their investment portfolio – perhaps thanks to restatement of loan purpose? Bendigo dropped their portfolio of owner occupied loans in the month.

apra-august-2016-mon-movementsHere are the current relative shares.

apra-august-2016-sharesFinally, here is the investment growth, by lender, which is running on a 3 month annualised basis at 2.6%. We see some of the majors growing their investment loans faster than system but below the theoretical 10% speed limit, which has little use currently. A couple of players are running well over however.

apra-august-2016-inv-hurdletrends   The RBA data, out soon will tell use more about the overall portfolio, including non-banks, and also about the restatement adjustments.

Author: Martin North

Martin North is the Principal of Digital Finance Analytics

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