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Investor lending grows 10.2pc

by Nick Bendel7 minute read

New lending statistics from APRA have confirmed the sharp rise in investor finance that has concerned the Reserve Bank of Australia.

Governor Glenn Stevens said last week that he is concerned investor finance is growing at double-digit rates and new rules may need to be introduced to cool the market.

According to APRA, Australia’s 12 leading third-party lenders recorded an average of 10.2 per cent growth in investor loans for the 12 months to 31 August 2014.

That compared to an average of 6.2 per cent growth in lending to owner occupiers.


The two big movers in investment lending were Macquarie Bank, whose book grew 76 per cent to $5.4 billion, and ME Bank, whose book grew 38.1 per cent to $3.2 billion.

AMP Bank jumped 14.7 per cent to $2.7 billion, Suncorp Bank rose 13.0 per cent to $11.2 billion and Citigroup climbed 11.5 per cent to $3 billion.

Westpac grew 10.0 per cent to $141 billion, NAB added 9.7 per cent to $59.5 billion, ANZ rose 9.6 per cent to $56 billion and Commonwealth Bank climbed 9.5 per cent to $119.2 billion.

Bendigo & Adelaide Bank increased 6.9 per cent to $10.5 billion, ING Direct also increased 6.9 per cent to $10.2 billion, and Bank of Queensland rose 0.6 per cent to $10.5 billion.

[Related: Housing market keeps powering banks]