The Australia and New Zealand Banking Group (
ANZ) has experienced a positive quarter for profits driven by growth in owner occupier loans.
In its third quarterly trading update released yesterday (15 August), the bank reported a cash net profit after tax of $1.79bn.
This was underpinned by an upwards surge in residential mortgages that was 30% above the industry average with most growth occurring in the owner occupier segment.
“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,” ANZ CEO Shayne Elliott said in an interview with the bank’s own publication
BlueNotes.
“We’ve been growing our business in owner occupied home loans much faster than the market and actually really re-weighting our portfolio towards that and we’re really comfortable with that. The way we’re doing that is just really is focus and great product and distribution through our branch network.”
This focus on owner occupier lending is one of the main drivers behind the bank’s positive capital generation throughout the quarter, Elliott said.
ANZ also reported that it is on track to meet various prudential requirements around mortgage growth in the interest-only and investment space. The bank provided figures around investment lending which sits at 80% of the combined industry average.
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