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ADIs grew owner-occupier loan book by $9.3bn in June

ADIs grew owner-occupier loan book by $9.3bn in June
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Total loan books for Australia’s banks continued to rise in June, remaining above the $2.1 trillion recorded in May, new APRA stats have revealed.

The Australian Prudential Regulation Authority (APRA) has released its monthly authorised deposit-taking institution (ADI) statistics for June 2023, showing further rises in both owner-occupier and investor loan books.

During June, the volume of owner-occupied loans on Australian bank books rose by 0.65 per cent (or approximately $9.3 billion) from $1.42 trillion in May to $1.43 trillion in June.

Notably, the increase in owner-occupied loans increased by a similar amount during May–June 2022, when it rose by $9.1 billion.

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Meanwhile, investor loan books grew by 0.16 per cent, from $685 billion in May to $686 billion in June.

Overall, the total mortgage book of Australian ADIs rose 0.61 per cent from $2.10 trillion to $2.11 trillion.

Looking at the major banks, Australia’s largest lender, the Commonwealth Bank of Australia (CBA), saw its total mortgage book grow to approximately $546 billion by the end of June, increasing over $2 billion.

CBA’s owner-occupied book grew $866 million to $366 billion at the end of the month, while its investor book grew from $179 billion to $180 billion (up by 0.5 per cent).

Following CBA was Westpac with a total loan book of $449 billion ($293 billion in owner-occupied mortgages and $155.9 billion in investor loans). This revealed a rise of approximately $3.4 billion since May 2023, the highest of the major banks for June.

National Australia Bank (NAB) maintained its owner-occupied book of over $200 billion, finishing the month on $201 billion, while its investor loans grew from $108.2 billion to $108.8 billion, closing out the month of June with a total mortgage book of around $309 billion.

For the smallest of the major banks, Australia and New Zealand Banking Group Limited (ANZ), finished June with its owner-occupied book at $186.5 billion and its investor loan book at $93.6 billion.

With the Reserve Bank of Australia (RBA) set to meet today (1 August), CBA and Westpac are anticipating another 25-bp hike to bring the cash rate to a peak of 4.35 per cent.

Meanwhile, NAB and ANZ have both predicted the Reserve Bank to hold the cash rate once more at 4.1 per cent, with NAB citing they expect this outcome due to the “lower-than-expected” Consumer Price Index (CPI) data released in late July.

[RELATED: Cash rate peak revised down: Economists]

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