Total investor credit growth in the twelve months to July 2015 has slowed to 11.4%, according to APRA’s latest banking statistics released on Monday, following 15% year-on-year growth in the twelve months to June 2015. Annual growth now sits just above APRA’s guideline of 10%.
Westpac – which is also Australia’s largest lender to investors – is the only major bank to keep growth below APRA’s guideline, recording investment growth of 9.6% in the year to July. Westpac’s total investment loan book currently sits at $156.3 billion.
Commonwealth Bank recorded growth just over APRA’s limit, at 10.1%, while ANZ record year-on-year growth of 11.8%. NAB is still well above the banking regulator’s guidelines, with year-on-year investment lending growth of 14.3%.
However, NAB is the only major lender who did not announce a blanket rate increase on new and existing investment loans. The third-largest lender to investors instead announced increased interest rates on interest-only home loans. It is also worth noting that NAB’s investor loan portfolio is still $63 billion less than Westpac’s.
Macquarie Bank posted the largest year-on-year percentage increase in investment lending over the twelve months to July, growing its investment lending by 79% over the period. However, the non-major’s total investor loan book is just $9.2 billion.
By dollar value, Westpac posted the largest increase, despite being the only major lender to slow growth below APRA’s 10% limit. Over the twelve months to July, the major bank wrote $13.7 billion worth of investment loans
