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ANZ mortgage book continues decline

While its big four rivals expanded their home loan books over February, ANZ’s total slipped by $226 million.

New authorised deposit-taking institution (ADI) data from APRA has shown that total residents loans and finance leases grew by 0.7 per cent over February to a total of $3 trillion, led by a jump in home lending.

Total mortgage books across Australian banks had lifted to $1.9 trillion, with a 0.6 per cent (or $7.7 billion) rise in owner-occupier lending, up to $1.2 trillion, and a 0.2 per cent ($1.6 billion) climb for investor loans, to $644.4 billion.

APRA reported there had been “robust borrower demand bolstered by low mortgage interest rates”.

Looking at the big four banks, ANZ’s total home loan book came to $260.6 billion in February, down 1 per cent ($56 million) from $260.7 billion in January.

The group reported a $226 million decline (down 1 per cent) in its owner-occupier book over February from the month before, with its loans totalling $173 billion.

The dip had continued from a $200 million fall, down to $173.3 billion in January, and another $200 million slip over December, to $173.5 billion.

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The bank’s investor book on the other hand had stayed steady, slightly picking up by 0.1 per cent ($170 million) to $87.5 billion.

ANZ’s investor lending had also seen an uptick over January and December, when it had totalled $87.3 billion and $87 billion respectively.

ANZ has previously acknowledged its slipping home loans book, which it attributed to stretched turnaround times for approvals, during a flurry of activity it was unprepared for.

The business has been working to reverse the decline, under the eye of its recently appointed group executive for Australian retail, Maile Carnegie.

Westpac on the other hand saw its investor loans slip by $92 million (down 1 per cent) to $167.8 billion.

But the bank’s overall home loan book came to $427.3 billion, climbing up by $348 million from $427 billion the month before.

The bank’s owner-occupier book had risen by $1.2 billion (up 0.4 per cent) to $259.5 billion.

The other two major banks experienced growth on all fronts.

At CBA, the bank’s total home loan book came to a little more than half of $1 trillion at the end of February, at $510.7 billion, up by $1.6 billion on the prior month.

Its owner-occupier book crept up by $1.5 billion (up 0.4 per cent) during February, to $339.2 billion.

Its investor lending ended February at $171.4 billion, up $34 million on the month before.

NAB’s total mortgage book came to $284.1 billion, rising by $1.6 billion (up 0.5 per cent) from January.

The owner-occupier book had grown by 0.6 per cent (up $1.1 billion), to $180.96 billion. Investor loans increased by 0.4 per cent (up $475 million) to $103.237 billion.

Meanwhile, credit card lending rose by 2.1 per cent ($600 million) to $28.1 billion.

Other household lending remained stable over February, dipping by 0.1 per cent to $76.3 billion.

Lending to non-financial businesses increased by $8.7 billion (0.1 per cent) over the month of February, to $868.5 billion.

However, APRA has warned that confidence in the sector could be slapped by geopolitical tension, inflationary pressures and the recent flooding in Queensland and NSW.

[Related: APRA confirms tweaks to leadership team]

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