Total ADI loan book increases over $10bn

The Australian Prudential Regulation Authority (APRA) released its monthly authorised deposit-taking institution (ADI) statistics for May 2024, revealing the total loan book of the country’s banks totalled $2.2 trillion.

This was an increase of 0.5 per cent on April’s figure of $2.18 trillion, up by over $11 billion.

The total amount of owner-occupier loans held by Australia’s ADIs stood at $1.49 trillion, up by 0.52 per cent from $1.48 trillion, an increase of $7.8 billion.

Meanwhile, investor loans surged month on month, increasing by $3.2 billion to $705 billion in May (up by 0.46 per cent). This was over double the rate of growth from April, where investor loans grew by $1.31 billion.

How did the big 4 banks fare?

ANZ came out ahead in May out of the big four banks with the strongest percentage growth in its total residential loan book of 1 per cent, up by $3 billion to $298 billion from $295 billion.

Its owner-occupier loan book grew by $1.6 billion (0.85 per cent) to $199 billion from $197 billion, while its investor book grew by $1.3 billion (1.34 per cent) to $99 billion from $97 billion.

Furthermore, with the federal Treasurer giving the green light to the ANZ/Suncorp merger, ANZ is poised to rise up the ranks as the third-largest major bank in Australia.

The acquisition of Suncorp Bank would see ANZ’s $298 billion residential loan book expand by $53 billion (to $351 billion), pushing NAB down to fourth place.

Meanwhile, the major bank juggernaut, the Commonwealth Bank of Australia (CBA), continued to hold the top market share position in May, with an increase to its total residential loan book of $2.9 billion (up by 0.53 per cent) to $554 billion from $551 billion.

CBA’s owner-occupier book rose by $1.5 billion (0.42 per cent) to $369 billion from $368 billion and its investor book rose by $1.3 billion (0.73 per cent) finishing the month on $185 billion from $183 billion in April.

NAB had the lowest dollar amount and percentage growth out of the major banks during May, up by a marginal 0.04 per cent ($135 million) with its total loan book remaining above $319 billion.

NAB recorded the only decrease to one of its loan books out of the big four competitors, with its investor book dropping by $225 million, remaining at $109 billion, while its investor book rose by $360 million (0.17 per cent) to stay at $209 billion.

Lastly, Westpac continued its strong month-on-month growth, with its total loan book increased by $3 billion (0.64 per cent) to $472 billion in May from $469 billion.

Its owner-occupier book grew by $2.3 billion (0.76 per cent) to $313 billion from $310 billion and its investor book grew by $640 million (up by 0.4 per cent) to $159 billion from $158 billion the previous month.

[RELATED: Treasurer approves ANZ-Suncorp merger]