The latest data from APRA reporting home lending to end March shows total ADI balances grew by $9.5 bn to $1,441,253, a rise of 0.67% in the month, which is an annualised rate of 7.9%. Superficially, $8.2.billion was for owner occupation and $1.3 billion for investment home purchase but the RBA warned that $1.5 bn was due to loan reclassification between OO and INV loans so there is still noise in the system.
There was little net market share movement among the larger players. CBA still has the largest share of owner occupation loans, and Westpac of investment loans.
The value of portfolio movements shows the focus on owner occupied lending, compared with investment loans. Perhaps.ANZ’s fall in investment loans could signal a reclassification?
Looking at the growth in investment loans in terms of the APRA 10% speed limit, calculating movements on a 3 month annualised basis, against a market movement of 1.33%, NAB has growth above system, whilst the other major players are below system. Some smaller players continue to write high volumes of investment loans.
Finally we look at the relative share by loan type. This chart takes the relative percentages for owner occupied and investment loans by bank. It does not show the relative value, but the relative share (which we think is a more important lens).
We will not post on the deposit or credit card portfolios as there is little to see this month.
