Bank’s investor loan book halves in value

By Cliff Tarr

Eight banks, including one of the big four, recorded a double-digit decline in the sizes of both their investor and owner-occupier lending portfolios over the 12 months to April.

MyState saw the biggest drop for investor and owner-occupier lending in the 12-month period, down a whopping 53.10 per cent and 37.6 per cent respectively, according to APRA’s latest Monthly Banking Statistics.

P&N Bank’s investor portfolio shrunk 19.5 per cent, while its owner-occupier book decreased 17.5 per cent.

Westpac experienced a 12.7 per cent decline in investor lending volumes, with its owner-occupier volumes suffering a greater fall of 18.7 per cent.

Teachers Mutual Bank’s investor book decreased 18.0 per cent, while its owner-occupier portfolio was down 14.0 per cent.

Bank of Sydney witnessed a 17.0 per cent drop in investor lending, and its owner-occupier book declined 11.9 per cent.

Auswide Bank’s investor portfolio was down 16.9 per cent over the period, and its owner-occupier volumes fell 14.2 per cent.

Macquarie also pegged back its investor and owner-occupier volumes, down 14.7 per cent and 18.7 per cent respectively.

Bank of Queensland also experienced a double digit decline in lending volumes for both borrower types, with a 11.30 per cent drop for investors and a 15.8 per cent fall for owner-occupiers.

Of the three other major banks, NAB’s lending volumes decreased 6.7 per cent for investors and 4.8 per cent for owner-occupiers, while CBA’s investor book shrunk by 1.90 per cent and its owner-occupier lending saw an 8.6 per cent fall.

ANZ experienced the smallest decline of the majors in investor lending during the 12 months to April, down 0.5 per cent, while its owner-occupier portfolio saw the second-biggest decline among the big four at 13.7 per cent.

Source: Mortgage Business 22/6/16

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