CUA to peg back investor loans under APRA crackdown

CUA to peg back investor loans under APRA crackdown
CUA to peg back investor loans under APRA crackdown

CUA has reported a profit of $48 million for 2014-15.

Its profit from its banking business rose 10.7% to $48.79 million, while new loans grew by almost 55%.

CEO Rob Goudswaard says the credit union is considering making arrangements with peer-to-peer lenders.

CUA, the country's biggest credit union, said its focus was improving the net interest margin, which has fallen from more than 2% to 1.9%.

Rob Goudswaard reported new loan growth will not be as strong in 2016 as it must peg back growth in its investor loans, which is at 16%, above the banking regulator's 10% growth cap.

CUA's chief market is owner occupier loans, which makes up 80% of its mortgage book. 

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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Investor Loans New Loans

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