Major bank lends $14bn of mortgages in six months

According to ANZ’s 2018 half-year results (HY18), its home loan portfolio (funds under management) has risen to $270.4 billion, up by 6 per cent from $256.1 billion in the previous corresponding period (pcp).

Owner-occupied mortgages represented 65 per cent ($174.5 billion) of its overall loan book, up from 62 per cent in the pcp.

However, the share of investor loans dropped in HY18 from 34 per cent in the pcp to 32 per cent ($87.2 billion).

The share of interest-only (IO) loans also dropped, falling by 10 per cent from 36 per cent in HY17 to 26 per cent ($71.5 billion) in HY18. Approximately 39.5 per cent ($28.3 billion) of IO loans were for owner-occupied borrowers, while $43.2 billion were for investors.

The share of principal and interest (P&I) loans grew to $190.2 billion, $146.2 billion for owner-occupied borrowers and $44.0 billion for investors.

Fixed rate loans also grew as a percentage of ANZ’s total mortgage portfolio, from 15 per cent in HY17 to 17 per cent in FY18. However, the share of loans with a variable rate dropped from 85 per cent to 83 per cent.

The average loan-to-value ratio (LVR) declined from 70 per cent in HY17 to 68 per cent in HY18, with the average dynamic LVR remaining stable at 51 per cent.

The share of ANZ mortgage holders ahead of their repayments also remained stable at 71 per cent.

The percentage of home loans to first home buyers (FHB) increased slightly from 6 per cent to 7 per cent over the same period.

The average loan size issued by ANZ jumped from $258,000 to $266,000.

The major bank’s share of the home loan market now sits at 15.8 per cent, after growing by 2 basis points from 15.6 per cent in the pcp, with the number of home loan accounts managed by ANZ increasing to 1.017 million, up from 992,000 in HY17.

Broker-originated loans made up 51 per cent of ANZ’s home loan portfolio, up from 50 per cent in the pcp.

“Our retail markets of Australia and New Zealand performed well with solid growth in both lending and deposits, increasing market share in our targeted segments, particularly owner-occupier principal and interest (P&I) home loans,” ANZ CEO Shayne Elliott said.

ANZ’s statutory net profit also grew, rising by 14.3 per cent from $2.91 billion in HY17 to 3.3 billion in HY18.

[Related: ‘Golden age’ of banking is over: ANZ CEO]