NAB surges ahead of big four rivals on owner-occupier mortgage lending since February 2011 ‘break-up’: APRA
In the 17 months since it kicked off its “break-up” campaign on Valentine’s Day last year, NAB has steamed ahead of its big four rivals in providing home loans for owner-occupiers, APRA figures reveal.
From February 29, 2011 to June 30, 2012, APRA figures show that NAB has grown its owner-occupier loan book by $22 billion, to leap ahead of ANZ as the nation's third biggest mortgage lender, with a loan book worth $131 billion.
This translates into mortgage growth of 20% over this time period and comes as NAB revealed that it would sign up its one millionth new customer – since the start of the break-up campaign – this week.
Its closest rival over this period, ANZ, has grown its mortgage book by just over $12 billion (11% growth), with $9 billion loan book growth for Westpac 5.6% during this time period, and $7.5 billion added to the Commonwealth Bank’s loan book (4%).
The figures also reveal solid rates of growth at some of the second-tier banks over the same 17-month period, with Bendigo & Adelaide Bank and Bank of Queensland growing their mortgage books by 25% each.
Top 10 fastest-growing owner-occupier loan books in volume terms
Bank | Loan book | End of | Increase in |
NAB | $131,333 | $109,296 | $22,037 |
ANZ | $123,619 | $111,473 | $12,146 |
Westpac | $168,686 | $159,737 | $8,949 |
CBA | $178,931 | $171,447 | $7,484 |
Bankwest | $36,946 | $31,426 | $5,521 |
Bendigo and | $14,858 | $11,967 | $2,891 |
Bank of Queensland | $12,311 | $9,840 | $2,470 |
Suncorp | $22,595 | $20,217 | $2,378 |
Macquarie Bank | $2,321 | $1,273 | $1,048 |
Members Equity Bank | $4,607 | $3,737 | $870 |
ING Bank | $27,938 | $27,277 | $661 |
QT Mutual Bank | $723 | $191 | $532 |
AMP Bank | $5,257 | $4,786 | $470 |
Citigroup | $5,080 | $4,708 | $372 |
Source: APRA |
As a rough guide, NAB adding $22 billion to its mortgage book over this time frame would translate into around 75,000 owner-occupier home loans (based on the average size of mortgage being just under $294,000, according to ABS housing finance figures).
This can only be a rough estimate, as the APRA figures do not reveal the value of each bank’s mortgage book that has been run off during this time period.
This week, NAB said it was expected to sign on its one millionth new customer since launching the break-up campaign.
While some people may have assume the bank has opened 1 million new accounts, NAB has confirmed to Property Observer that it has gained one million new customers since the start of the campaign.
NAB's break-up campaign coincided with the bank keeping its promise to maintain the lowest standard-variable mortgage rate of the big four banks until at least the end of 2012 – though the gap between it and ANZ and Commonwealth Bank has narrowed.
NAB has an SVR of 6.78%, marginally below that of the Commonwealth Bank and ANZ (6.80%), with Westpac at 6.89%.
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