ANZ bullish about mortgages, worried about regulation

ANZ's mortgage book rose 7.4 per cent to $209.4 billion, while its home loan sales jumped 15.3 per cent to $53.5 billion.

The broker share of those mortgage sales remained at 48 per cent, the same as in 2012/2013. Brokers captured a 54 per cent share of ANZ's home loans business in 2011/2012.

ANZ reported that it is on track to record its 19th consecutive quarter of above-system mortgage growth.

"Volumes continue to grow above system and margins have been well managed," it said.

"New mortgage assessments are processed more efficiently at higher quality from the outset."

According to ANZ, 70 per cent of branch sales staff are accredited to sell home loans, while 53 per cent are accredited to sell wealth products.

The 2013/2014 results also revealed that credit impairment charges fell 17 per cent to $986 million.

That was "driven by management actions to strengthen the lending book and benign credit conditions, along with a lower level of new and top-up provisions".

Meanwhile, ANZ has warned the federal government to think carefully about introducing new regulation in response to the Financial System Inquiry.

"It is perhaps not widely understood that Australia's financial system has been strengthened significantly since the GFC and our major banks are now stronger and safer than ever," it said.

"While everyone benefits from a well-capitalised, well-managed banking system ... there is a real cost to the economy of evermore restrictive regulation and policy settings.

"It is not in Australia's interest for its financial system to be globally uncompetitive."

Suncorp chief executive Patrick Snowball said last week that the federal inquiry has "made the major banks nervous".

[Related: ANZ tells inquiry to simplify disclosure documents]