Mutual banks outpace majors for mortgage growth

14 June 2016

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Home loan growth among the mutual banks was more than double that of the big four in the last quarter, new figures released by APRA and the Reserve Bank show.

Mortgage growth for customer-owned ADIs was at 3.1 per cent during the March 2016 quarter, compared to 1.4 per cent for the major banks. The mutuals’ loan growth was also above system (1.7 per cent).

The mutuals outpaced the majors for year-on-year mortgage growth, with customer-owned banks at 8.3 per cent, compared to 7.6 per cent for the big four. System growth was at 7.6 per cent, the APRA-Reserve Bank data reveals.

Customer-owned banks also led the majors for year-on-year growth in overall assets, with the mutuals posting 6.6 per cent growth, compared to 5.0 per cent growth for the big four, with system growth at 5.4 per cent.

Total asset growth over the March quarter was at 1.7 per cent for the mutual banks and 1.9 per cent for the majors – both below system growth at 2.1 per cent.

Customer Owned Banking Association CEO Mark Degotardi said the figures show borrowers are well aware of the benefits of mutual banks.

“People are looking at our model favourably because we offer competition and choice, diversity and a genuine alternative,” Mr Degotardi said.

“Collectively we are closing in on $100 billion in assets as a sector, and these results show the customer-owned model is innovative, growing and has a bright long-term future.”