Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn
About

News

Home loans lift ANZ to $1.79bn 3Q profit

Stuart Condie  |  15 Aug 2017Text size  Decrease  Increase  |  

Page 1 of 1

SYDNEY - [AAP] Australian and New Zealand Banking Group (ASX: ANZ) has reported a third-quarter cash profit of $1.79 billion, helped by strong growth in owner-occupier mortgage lending.

A trading update released on Tuesday did not give details on how the result compared to the same period last year, but ANZ said the unaudited cash profit was a 5.3 per cent improvement on the average of the first two quarters of the current financial year.

Chief executive Shayne Elliott said above-system growth in residential mortgage lending was a result of a deliberate strategy and not just a response to regulatory intervention to slow investor lending.

"It's more than just the regulatory pressure and we've said for some time, as a strategy, we want to be the best bank for people that want to buy and own a home," Mr Elliott said.

"We've been growing our business in owner-occupied home loans much faster than the market and actually really reweighting our portfolio towards that."

The Australian Prudential Regulatory Authority had already limited banks to growing their investor lending by 10 per cent a year before deciding in March that they should also limit growth in higher-risk interest-only loans to 30 per cent of new mortgages.

ANZ said it is on course to stay within all APRA limits.

The bank said net interest margin remained stable at 2.00 per cent, but flagged the fourth-quarter impact of the federal government's bank levy on its funding costs.

 

AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.