Total bank loans near $3 trillion, finds APRA

Both owner-occupier and investor mortgage lending increased in October 2021, reflecting strong borrower demand boosted by low rates, according to new data.

The Australian Prudential Regulation Authority’s (APRA) monthly authorised deposit-taking institution (ADI) statistics for October 2021 has revealed that the total residents loans and finance leases on bank books increased by $15.9 billion or 0.5 per cent in October. 

As such, the banks now have $2.98 trillion on their books, with $1.9 trillion being owner-occupied and investor mortgages. 

This was led by a $9.4 billion or 0.8 per cent increase in owner-occupied housing lending. 

Investment housing lending increased by $1.5 billion or 0.2 per cent.

This continues the trend of strong growth across home lending – which had risen by $17.7 billion – or 0.6 per cent – in the previous month, which APRA said is being driven by “strong borrower demand bolstered by low mortgage interest rates”.

ANZ

The major bank continues to see declines in its home lending book, with its housing loans falling from $260.4 billion in September to $260.4 billion in October.

The major bank’s owner-occupier lending rose marginally to $173.7 billion in October  (up from $173.4 billion in September) while its investor loans dropped slightly from $87.0 billion to $86.6 billion.

ANZ’s total residents loans and finance leases were steady at around $407.5 billion.

CBA

The Commonwealth Bank of Australia’s (CBA) loan book rose from $493.6 billion in September to $497.5 billion in October, driven by growth in both its owner-occupier and investor lending portfolio.

Its owner-occupier loans rose by around $3 billion from $327.5 billion in September to $330.3 in October, while CBA’s investor loans rose from $166.1 billion to $167.2 billion.

Total residents loans and finance leases at CBA climbed to hit just over $700 billion in October, the APRA stats show.

NAB

National Australia Bank’s (NAB) figures show that its owner-occupier loan book had risen by over $1 billion in October to total of $173.5 billion in October (up from $172.1 billion in September).

NAB’s investor lending portfolio remained steady at around $100.6 billion, while total residents loans and finance leases increased to just over $500.5 billion.

Westpac

Westpac continued to see its investor loan book shrink, falling from $173.5 billion in September to $172.4 billion in October.

However, its total loan book increased to $424.2 billion, driven by its owner-occupied book, which was up from $250.2 billion to $251.8 billion over the month.

Westpac’s total residents loans and finance leases are now at $609.4 billion.

Credit card lending rises for the first time in 6 months

Notably, the APRA stats also show that credit card lending rose for the first time since April 2021.

Credit card lending rose by $0.3 billion or 1.1 per cent in October, which APRA said was “likely reflecting the recovery in economic conditions”.

Other household lending (for example, fixed-term personal loans) decreased by $0.3 billion or 0.4 per cent.

Non-financial business lending increased strongly by $4.6 billion or 0.5 per cent in October, partly reflecting “improvements in business confidence and conditions”, the APRA report found.

[Related: Home lending continues sustained growth: APRA]