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The latest Monthly Authorised Deposit-taking Institution Statistics from the Australian Prudential Regulation Authority (APRA) showed lending to non-financial businesses across authorised deposit-taking institutions (ADIs) rose by $7.8 billion (0.6 per cent) to approximately $1.24 trillion.
Despite the change in monthly growth leaders, National Australia Bank (NAB) remained Australia’s largest business lender, while the major banks continued to account for more than 70 per cent of the market.
Monthly leadership changes
In April, ANZ recorded the strongest monthly growth among the major banks after increasing its business lending portfolio by almost $1.9 billion over the month (+1.24 per cent).
In May, however, CBA and Westpac emerged as the strongest performers, while NAB continued its steady expansion, and ANZ’s monthly growth moderated.
Westpac increased its commercial lending portfolio by $2.5 billion (+1.2 per cent) to $206.6 billion, the strongest percentage growth among the big four.
Westpac’s business lending portfolio also expanded by $25.9 billion over the year (+14.3 per cent), the strongest annual growth rate among the major banks.
CBA remained the second-largest business lender after growing its portfolio by $2.5 billion (+1.1 per cent) to $240.8 billion, recording the largest dollar increase among the majors.
Meanwhile, ANZ’s growth slowed from April. The bank added $306 million (+0.2 per cent) during May, taking its portfolio to $153.2 billion.
Over the year, ANZ’s business lending portfolio increased by $5.3 billion (+3.6 per cent), remaining the slowest annual growth rate among the major banks.
National Australia Bank (NAB) retained its position as Australia’s largest business bank, with its portfolio increasing to $272 billion in May.
The bank added $1.9 billion over the month (+0.7 per cent), continuing its steady expansion while maintaining a multibillion-dollar lead over its closest competitors.
Despite its dominance, NAB has flagged growing pressure among its business customers, as input costs increasingly outpace price growth, erode business margins, and add to inflation and interest rate concerns.
Majors’ domination continues
APRA’s data show the four major banks held approximately $872.7 billion in loans to non-financial businesses at the end of May, representing just over 70 per cent of the national total.
Collectively, the major banks added around $7.3 billion in business lending during the month, accounting for more than 90 per cent of the sector’s overall growth.
Over the past 12 months, the majors expanded their combined business lending portfolios by approximately $87.5 billion (+11.2 per cent).
Overall lending to non-financial businesses reached a fresh high of approximately $1.24 trillion in May. Across the ADI sector, business lending has increased by around $109.2 billion (+9.6 per cent) over the past year.
Mixed fortunes among non-major lenders
Outside the majors, the picture was more mixed.
Agricultural bank Rabobank recorded one of the strongest monthly performances, increasing its lending portfolio from $22.8 billion to $23.1 billion (+1.2 per cent).
Macquarie Bank also continued to expand, growing its commercial lending portfolio from $22.6 billion to $22.9 billion (+1.3 per cent).
However, several international lenders moved in the opposite direction.
Sumitomo Mitsui Banking Corporation saw its portfolio decline from $23.4 billion to $22.5 billion (-3.9 per cent) during May.
Bank of China also recorded a modest decline, with its commercial lending book easing from $23.1 billion to $23.0 billion (-0.5 per cent).
Japanese lenders MUFG Bank and Mizuho Bank both remained among the 10 largest providers of business credit, although each recorded a decline in lending balances over the month. MUFG’s portfolio fell 0.8 per cent, while Mizuho recorded the sharpest decline among the top 10 lenders, down 3.1 per cent.
While performance varied among the leading non-major lenders, the latest APRA figures show the major banks continued to drive the overwhelming majority of business lending growth during May.
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