ANZ trumps peers in battle for mortgage flows

The latest monthly authorised deposit-taking institutions statistics (MADIS) have been published by the Australian Prudential Regulation Authority (APRA), revealing that ANZ’s mortgage portfolio growth far exceeded its big four peers in May.

The value of ANZ’s mortgage book increased by approximately $1.8 billion, from $246.3 billion in April to $248.1 billion.

Owner-occupied flows drove the bank’s book growth, up approximately $1.5 billion to $162.8 billion, while its investment portfolio grew by approximately $300 million to $85.3 billion.

ANZ CEO Shayne Elliott has previously told Mortgage Business that the bank experienced a sharp uptick in mortgage volumes in response to the COVID-19 crisis, particularly from owner-occupier refinancers.

This is reflected in research from online broking platform Lendi, which revealed that in the three months to 31 May, 38 percent of the group’s home loan customers sent their business to a big four bank, up from 16 per cent in the 12 months prior.

The surge in business was driven by refinancers, with 48 per cent of Lendi’s customers lodging applications with the big four, up from 14 per cent in the year ending 29 February.

However, the increase in mortgage volumes has come at a cost, with the bank’s turnaround times spiking in recent months, from an average of 10 business days in April to an average of 22 business days in May.

The lags have prompted ANZ to introduce changes to its lending processes, which have included the onboarding and relocation of staff.   

Subdued investor flows stunt growth  

The Commonwealth Bank of Australia (CBA) also continued to record strong growth in its mortgage portfolio, which grew by approximately $900 million, from $450.8 billion to $451.7 billion.

This follows two consecutive months of strong portfolio growth amid the COVID-19 crisis, totalling a combined $4.5 billion.

CBA’s book growth came exclusively via the owner-occupied channel, with its owner-occupied book thickening by approximately $1.1 billion, from $294 billion to $295.1 billion.

However, this was offset by a contraction in CBA’s investment portfolio, down approximately $200 million, from $156.8 billion to $156.6 billion.  

NAB’s portfolio growth was also stunted by a contraction in its investment portfolio, which thinned by approximately $600 million, from $108 billion to $107.4 billion.

However, owner-occupied book growth of approximately $1.1 billion to $155.1 billion helped the bank record total portfolio growth of approximately $500 million, from $262 billion to $262.5 billion.

Westpac’s woes continue

Westpac was the only big four bank to record a contraction in its mortgage portfolio, down approximately $500 million, from $406.8 billion to $406.3 billion.

This follows a $1.2-billion contraction in April.

An increase of approximately $300 million in Westpac’s owner-occupied book, from $228.2 billion to $228.5 billion, was offset by an $800-million contraction in its investment portfolio, from $178.6 billion to $177.8 billion.

This has coincided with a sharp decline in the percentage of brokers lodging mortgage applications with Westpac and its subsidiaries, with Momentum Intelligence’s latest Broker Pulse data reporting that broker usage slipped from a 2020 peak of 56 per cent in March to 41 per cent in May.

Brokers interested in joining Momentum Intelligence’s Broker Pulse panel can apply to Momentum Intelligence here. Participants of the survey will receive full access to the report and exclusive insights into the research.