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 Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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Investor Loans New Loans

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