ANZ, NAB carve out housing gains
With nearly $3.8 billion housing loans sold in the past month, ANZ and NAB grabbed most of the gains.
On a monthly measure ANZ is growing slightly ahead of its big-bank rivals while Westpac continues to lose market share, according to investment bank Nomura. The assessment is based on monthly banking figures compiled by the Australian Prudential Regulation Authority.
However, said Nomura analyst Victor German, while Westpac appeared more aggressive on pricing in the mortgage market, it would take time for the bank to regain momentum. Mr German said continued improvement in housing credit appeared to be underpinned by the household sector's appetite for low-interest borrowing.
Business credit growth trends remain weak, with October figures highlighting a small decline. While the broader mortgage market grew at 5.5 per cent in the past year, Westpac's mortgage book grew just 1.8 per cent. ANZ has grown fastest, at 7.1 per cent, while NAB had growth of 6.9 per cent. Commonwealth Bank largely matched the overall market with growth of 5.8 per cent.
The figures come as ANZ last week demonstrated investments in retail banking technology, flagging the possibility of voice-recognition technology in call centres.
ANZ retail banking boss Phil Chronican said the move could have a "massive productivity benefit" for the bank because it could save resources required to identify customers over the phone.
All of Australia's big banks are ploughing hundreds of millions into upgrading their technology, amid expectations that mobile banking will be a critical way to keep and win customers.
NAB retail banking boss Gavin Slater will this week provide an overview of investments in banking technology and changes in product mix.
In terms of overall banking market share, Commonwealth Bank has 26.8 per cent and Westpac 24.7 per cent. After making gains in recent years NAB is on 16.3 per cent and ANZ has a 14.8 per cent share of the nation's mortgage market.
Frequently Asked Questions about this Article…
ANZ and NAB are gaining market share in the home lending sector, with ANZ growing slightly ahead of its big-bank rivals. They have been successful in capturing a significant portion of the $3.8 billion in housing loans sold recently.
Westpac is currently lagging behind in the mortgage market due to slower growth compared to its competitors. Despite being aggressive on pricing, it will take time for Westpac to regain momentum and increase its market share.
The improvement in housing credit is largely driven by the household sector's appetite for low-interest borrowing, which continues to support growth in this area.
ANZ has experienced the fastest growth in the mortgage market at 7.1%, followed closely by NAB at 6.9%. In comparison, Commonwealth Bank's growth is at 5.8%, while Westpac's mortgage book grew by only 1.8%.
ANZ is investing in retail banking technology, including the potential use of voice-recognition technology in call centers to improve productivity. NAB is also focusing on investments in banking technology and changes in product mix.
Mobile banking is becoming increasingly important for Australian banks as they invest heavily in technology upgrades. It is seen as a critical way to retain and attract customers in the competitive banking landscape.
Commonwealth Bank holds a 26.8% market share, Westpac has 24.7%, NAB has increased to 16.3%, and ANZ holds a 14.8% share of the nation's mortgage market.
Business credit growth trends remain weak, with recent figures indicating a small decline. This contrasts with the broader mortgage market, which has seen growth over the past year.
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