Pete Wargent blogspot


'Must-read, must-follow, one of the best analysts in Australia' - Stephen Koukoulas, ex-Senior Economics Adviser to Prime Minister Gillard.

'One of Australia's brightest financial minds, must-follow for accurate & in-depth analysis' - David Scutt, Markets & Economics Editor, Sydney Morning Herald.

'I've been investing 40 years & still learn new concepts from Pete; one of the best commentators...and not just a theorist!' - Michael Yardney, Amazon #1 bestseller.

Tuesday, 1 August 2017

APRA monthly banking update

Monthly banking update

APRA released its latest Monthly Banking Statistics for June 2017 yesterday, detailing information on the banking business of individual banks within the domestic market.

Further strong mortgage growth of +0.63 per cent was reported taking the total for outstanding housing loans to a fresh high of $1.57 trillion.

The figures officially reported were $1,107,754 million (+0.73 per cent) for owner-occupier mortgages and $552,270 million (+0.44 per cent) for investment mortgages outstanding.

Thus investment mortgages now officially account for 35.2 per cent of banking loan books, classification issues notwithstanding. 

Investor loan books

Looking specifically at investor loans, it's clear that none of the major banks is close to the arbitrary 10 per cent 'speed limit' or annual growth cap imposed by the regulator.

As you can see, of the major lenders Westpac Banking Corporation (WBC) is ramping up its investment loan exposure at the present time. 

Indeed, Westpac (WBC) is presently expanding both sectors of its mortgage book, and has the largest exposure to investment loans overall at $146.8 billion, although Commonwealth Bank of Australia (CBA) has a more substantial loan book in aggregate.

Although the majors have wound back growth in investment loans, some other lenders continue to exceed the 10 per cent growth cap comfortably.

Additionally certain lenders have loan books that are exposed to markets at risk of mortgage arrears, including regional Queensland.

For more detailed and in-depth analysis, please subscribe for our monthly reports