Another bumper month for home loans

By Martin North, cross-posted from the Digital Finance Analytics Blog

APRA just released their monthly banking statistics, which provides a view of lending and deposit portfolios from the banks (ADI’s). Overall home lending by the banks rose $9.12 billion to $1.315 trillion. Owner Occupied loans grew by 0.59% and Investment Loans by 0.9%, with Owner Occupied Lending now accounting for 65.1% of the loan book (down from 65.2% last month). Looking in more detail at the individual bank data, we see that CBA maintains its leading position in the Owner Occupied sector, whilst WBC leads the Investment Property Lending.

HomeLendingSharesDec2014Looking at the trend data, we see stronger investment lending growth at WBC, and to a lesser extent at the other majors.

HomeLendingTrendsDec2014In portfolio percentage terms, Members Equity registered 3% growth, with Macquarrie at 2% and Suncorp and AMP at 1.8%, all above system growth.

HomeLendingMOMPCDec2014Turning to deposits, we saw growth of 1.37% in the month, to $1.8 trillion. CBA holds the largest share of deposits, with WBC and NAB following.

DepositsShareDec2014Looking at the monthly portfolio movements, we see CBA recorded portfolio growth of 1.6%, whilst WBC was 0.29%. Rabbobank grew their portfolio by 1.69%, whilst Macquarie and ING both grew their portfolios by 1.55%. We suspect some players are actively managing their deposits preferring to use wholesale funding alternatives, as we have discussed before.

DepositsMonthyMovementsDec2014Looking at credit cards, balances rose 1.9% to $41.8 billion. There was little overall change in portfolio mix amongst the main players, and Citigroup maintained in position at number 5.


Leith van Onselen

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

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