ANZ sets sights for mortgage growth in 2024

While the beginning of the year was eroded by mortgage wars, ANZ chief executive Shayne Elliott expects an easing of competition and highlighted that lending growth for ANZ remained robust.

“We want to grow our Australian Home Loan book profitably by continuing to offer reliable turnaround times and in line with that we are competitive, but not market-leading on pricing,” Mr Elliott said.

“Our investment in home loan processing capability and capacity and improved broker experience are providing ongoing benefits.”

As the bank continues to recapture lost market share, it remains the only major bank offering a cashback deal to refinancers.

However, the bank has halved the value of this incentive from $4,000 to $2,000 for eligible loans over $250,000 with a deposit of 20 per cent or more.

In its third-quarter results, ANZ also noted a slowdown in home loan lending. It forecasts approximately $24 billion in fixed-rate loans to mature in the first half of 2024, followed by an estimated $11 billion in the second half of the same year.

While the Australian retail division is the smallest among the bank’s four divisions, which also include commercial, institutional, and New Zealand, Mr Elliott emphasised its rapid transformation into a digital-first bank through the growth of their newest business ANZ Plus.

“Two years ago we had the courage to offer Australians a completely new way to bank – built on the very latest technology, with the very best security, while making banking as easy as can be,” Mr Elliott said.

“Today, ANZ Plus is a fully-fledged business line within our Australian retail business.”

The bank’s customer and deposit acquisition are around 550,000 Australians choosing ANZ Plus.

“Just last month we reached a major milestone when we launched the ANZ Plus digital home loan,” Mr Elliott said.

“This dramatically reduces the time and cost it takes to assess, approve, and settle a loan for customers.”

ANZ-Suncorp acquisition

Regarding the ANZ-Suncorp acquisition, Mr Elliott remains optimistic despite the decision being contested by the consumer watchdog.

“We have exciting plans to support more customers, as well as the economic growth of Queensland, which is one of the fastest-growing states,” Mr Elliott said.

As part of its plan to acquire Suncorp Bank, Mr Elliott highlighted plans to establish a major tech hub in Brisbane, “creating 700 jobs in digital, cloud, and data while establishing strong career pathways for Queenslanders”.

In a hearing regarding the ACCC’s refusal of ANZ’s multibillion-dollar acquisition of Suncorp Bank, the counsel representing ANZ argued that the decision was made in error due to a lack of confidence or definitive non-satisfaction.

ANZ believes the merger, first announced last year, would strengthen its position against the three remaining major banks (National Australia Bank, Commonwealth Bank of Australia, and Westpac) without significantly reducing competition in the market.

[Related: ACCC made fatal mistake in blocking ANZ-Suncorp merger: ANZ Counsel]