ANZ lifts loan book
ANZ has reported a slight lift in its mortgage book following a renewed focus on the market last year.
In its trading update announced on Thursday, the bank reported that its loan growth grew slightly by 0.5 per cent in the December quarter, up from a 2.6 per cent fall in the September quarter.
It is the first positive growth number reported since June 2018.
The owner-occupied lending market led the bulk of the growth while the investor market fell.
Home loan applications also grew steadily since March 2019.
Source: APRA data
In a statement the bank said that actions had taken last year to help grow its mortgage business.
This included providing “greater certainty for customers by improving turnaround times and providing greater clarity” to its bankers, mobile lenders and mortgage brokers about the bank’s lending policies.
The bank also embarked on a major marketing campaign which saw application volumes increase in the second half of fiscal 2019 and stabilise at levels well above the first half average.
ANZ said, “work continues on improvements to processes and procedures”.
Its home loan balance sheet has also stabilised, however there are higher levels of amortisation arising from the low interest rate environment and associated increased paydown by those with principal and interest loans.
Delinquency levels declined from the fourth quarter of 2019. The portfolio’s portion of borrowers that are in arrears 90 days and over are down 8 basis points to 1.08 per cent primarily driven from improvements in Western Australia and NSW.