Westpac sees IO loans shink to 31 percent of home loan portfolio

Westpac sees IO loans shink to 31 percent of home loan portfolio
Westpac sees IO loans shink to 31 percent of home loan portfolio

Westpac has reported its IO loans has dipped to 31 percent of its home loan portfolio.

It sat at 46 percent in late 2017.

An overview of ANZ's home loan portfolio from their half year results investor pack also showed a big fall in interest-only loan borrowers.

Just 18 percent of their portfolio is IO compared with 26 percent this time last year and 36 percent in 2017.

NAB's IO loans have dropped to 26 percent of their loan book.

Some 84 percent of Westpac's entire portfolio has an 80 pecent or lower LVR.

Westpac announced a reported profit of $3,173 million for 1H19.

 Westpac sees IO loans shink to 31 percent of home loan portfolio

Cash earnings, the Group’s preferred measure of earnings, was $3,296 million, down 22%.

The Group’s performance in 1H19 was impacted by major remediation and restructuring items: including provisions for estimated customer refunds, payments and associated costs of $617 million (after tax); and costs associated with the reset of Westpac’s wealth strategy announced on 19 March 2019 ($136 million after tax). Excluding these items cash earnings was down 5%.

Westpac Group CEO, Mr Brian Hartzer said it was "a disappointing result reflecting weaker business conditions and the bank dealing decisively with outstanding issues, including remediation and resetting our wealth strategy.”

Tags: 
Westpac Interest-only Loans

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