Steady growth across the board in ADI loan books

According to the Australian Prudential Regulation Authority’s Monthly Authorised Deposit-taking Institution (ADI) Statistics for November 2024, the number of loans saw a steady rise throughout the month, reaching a total of $2.26 trillion.

This is 5.2 per cent higher than the total of $2.15 trillion in November 2023, which was the last time the Reserve Bank of Australia (RBA) cut the cash rate to its current 4.35 per cent.

Throughout November, total loans books grew 0.54 per cent. This was driven by a 0.54 per cent increase in owner-occupier loans and a 0.53 per cent increase to investor loans.

How did the majors fare?

Australia’s most popular banks each saw slight increases across the board in total loan books. Leading the charge was the biggest lender, CBA, seeing a 0.59 per cent increase over the month of November.

This saw the total loan book for CBA reach $574 billion. When compared to November 2023 results, CBA has seen a yearly increase of 5.6 per cent.

ANZ continues to be a popular choice for borrowers, with the major witnessing the second largest growth over the month. Climbing to a total of $307 billion, the loan books at ANZ saw a monthly rise of 0.46 per cent.

ANZ has continued strong performance despite having the smallest loan book of each of the majors. The acquisition of Suncorp back in July helped to grow the loan books for ANZ. However, the lender has driven home that despite the acquisition, the banks will “continue to operate as two independent brands.”

Next is NAB with a monthly increase of 0.44 per cent, reaching a total of $324 billion. Lastly is Westpac, hitting $480 billion, making the lender the second largest in loan book size. Westpac saw a 0.42 per cent monthly increase to its loans.

The RBA is expected to hand down a cash rate cut sometime in 2025. This will no doubt have an impact on the number of loans being taken out.

ANZ came forward recently penning two rate cuts this year, one in May and another in August, bringing the cash rate to a total of 3.85 per cent.

If these predictions are anything to go by, lenders could see positive growth in the coming year to loan books as borrowers become more confident in their capacity to take out a mortgage.

Broker Daily will continue to analyse the ADI data throughout the year to spot any trends.

Jack Campbell is the editor of Broker Daily. After graduating from the University of Wollongong in 2022, Jack began his journalistic career working on Broker Daily’s sister brand, HR Leader. In August 2023 he was made the news editor and worked alongside some talented journalists writing articles and recording podcasts.

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