Powered by MOMENTUM MEDIA
subscribe to our newsletter
Mutual banks outpace majors for mortgage growth

Mutual banks outpace majors for mortgage growth

Home loan growth among the mutual banks was more than double that of the big four in the last quarter, new figures released by APRA and the Reserve Bank show.

Mortgage growth for customer-owned ADIs was at 3.1 per cent during the March 2016 quarter, compared to 1.4 per cent for the major banks. The mutuals’ loan growth was also above system (1.7 per cent).

The mutuals outpaced the majors for year-on-year mortgage growth, with customer-owned banks at 8.3 per cent, compared to 7.6 per cent for the big four. System growth was at 7.6 per cent, the APRA-Reserve Bank data reveals.

Advertisement
Advertisement

Customer-owned banks also led the majors for year-on-year growth in overall assets, with the mutuals posting 6.6 per cent growth, compared to 5.0 per cent growth for the big four, with system growth at 5.4 per cent.

Total asset growth over the March quarter was at 1.7 per cent for the mutual banks and 1.9 per cent for the majors – both below system growth at 2.1 per cent.

Customer Owned Banking Association CEO Mark Degotardi said the figures show borrowers are well aware of the benefits of mutual banks.

“People are looking at our model favourably because we offer competition and choice, diversity and a genuine alternative,” Mr Degotardi said.

“Collectively we are closing in on $100 billion in assets as a sector, and these results show the customer-owned model is innovative, growing and has a bright long-term future.”

[Related: Banks warned of growing housing market risks]

Mutual banks outpace majors for mortgage growth
mortgagebusiness
  • 23
    Days
  • :
  • 07
    Hours
  • :
  • 54
    Minutes
  • :
  • 01
    Seconds

EARLY BIRD CLOSING SOON
Have you secured yours?

Latest News

Stagnant housing market activity is expected to prolong the stay of borrowers in arrears, with the forecast fall in home values to be among...

The non-bank sector is expected to “lead the way” in 2019, after issuing more than 60 per cent of new home loans in 2018, according to S...

The volume and value of new residential buildings fell in the September quarter 2018, reflecting the “softening” housing market the HIA ...

FROM THE WEB
podcast

LATEST PODCAST: How a softening property market will impact the mortgage sector

Is enough being done to ensure responsible lending?