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APRA stats show investor crackdown still work in progress

by Huntley Mitchell3 minute read

Ten third-party banks are growing their investor lending books faster than APRA guidelines – and three have actually picked up the pace in the past year.

According to APRA’s most recent banking statistics, Macquarie Bank, Heritage Bank and NAB all increased their investor loans by more than 10 per cent during the year to May.

One of the “specific areas of prudential concern” that APRA identified in December was lenders increasing their investor volumes by more than 10 per cent per annum, which would translate to 0.83 per cent each month.

Macquarie reported the largest increase with 86.8 per cent investor growth over the period, compared to 74.8 per cent in the 12 months to April. The bank experienced 12.0 per cent growth between April and May alone.

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Heritage Bank’s investor lending grew 12.8 per cent over the 12 months to May, compared to 10.8 per cent over the year to April. Heritage’s monthly growth was 1.6 per cent.

NAB increased its investor lending by 14.1 per cent over the year to May, compared to 13.9 per cent in the 12 months to April. NAB’s monthly growth was 1.1 per cent.

Among other banks to see continued growth in investor lending above the 10 per cent target, Teachers Mutual Bank grew its investor lending by 30.1 per cent over the period – down from 32.6 per cent for April.

ME grew its investor lending by 29.4 per cent over the period – down from 30.4 per cent for April. P&N Bank’s investor lending grew 25.6 per cent – down from 25.8 per cent.

AMP Bank’s investor lending increased by 13.1 per cent in the 12 months to May – down from 13.9 per cent for April. Suncorp Bank grew its investor loans by 11.6 per cent – down from 12.1 per cent for April.

ANZ and Westpac grew their investor books by 10.6 per cent and 10.0 per cent respectively over the period, compared to 10.5 per cent and 10.3 per cent for April.

CBA was the only big four bank to come under the threshold, with its investor loans growing 9.9 per cent to May.

Last month, The Adviser's sister publication, Mortgage Business, reported that the same 10 banks had grown their investor volumes by more than 10 per cent over the year.

[Related: Investor loans defy APRA crackdown]

APRA stats show investor crackdown still work in progress
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