Investors Still Game, But Weaker Volumes

The ABS released their lending finance data today to February 2018. We discuss the results. The Great Credit Binge Is Ending!

To start at the end of the story, we see significant falls across most states in investment lending flows, with the most significant falls in the Sydney market.

The share of investment flows continues to drift lower, to around 35%. But that is still substantial investment lending!

More broadly, the monthly changes from January to February shows the total value of owner occupied housing commitments excluding alterations and additions rose 0.4% in trend terms.

The trend value of total personal finance commitments fell 0.1%. Fixed lending commitments fell 0.7%, while revolving credit commitments rose 1.0%.

The trend value of total commercial finance commitments rose 0.2%. Fixed lending commitments rose 0.5%, while revolving credit commitments fell 0.6%. Within that investment loan flows fell just a little.

The trend series for the value of total lease finance commitments fell 1.1% in February 2018.

Finally, the percentage of investment lending of all lending flows is below 20%, and shows a small fall. But we also see a fall in business lending to around 55%, excluding investment property lending.

Author: Martin North

Martin North is the Principal of Digital Finance Analytics

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