ANZ’s Australian parent’s slides showed adviser-originated home loans accounted for 53% of its book in March, up from 52% a year earlier.
The bank’s net lending rose 2% while customer deposits were up 4% in the latest six months.
Net profit for the six months fell 1% to $1.26 billion compared with the previous first half.
The bank’s charges against profit for bad debts of $22 million compared with a $20 million release of such charges in the year-earlier six months. ANZ’s total credit impairment provision was $805 million at March 31.
Chief executive Antonia Watson said ANZ lent $15 billion in new home loans during the six months, taking total home loans to $118.9 billion.
“House prices had a soft start to the year, with the housing market facing weaker confidence in the economic outlook and upward pressure on mortgage rates,” Watson said.
“Wholesale rates have been rising since October last year, flowing through to changes in both deposit and lending rates.”
The bank’s number of home loan accounts rose by 33,000 to $582,000 with home loans accounting for 74% of total lending.
The average size of new loans was $455,000, up from $401,000 in the year-earlier six months and the average loan-to-valuation at origination rose to 60% from 56% with 91% on fixed rates, up from 89%.
Watson said ANZ has seen strong uptake of its Good Energy Home Loan for electric and hybrid vehicles and that, in March, the number of households taking out this product was about 40% higher than the average of the previous three months.
Since it was launched in July 2022, more than $1 billion has been lent on this product to more than 25,000 New Zealand customers.
Watson said ANZ’s net interest margin (NIM) fell five basis points, reflecting ongoing margin pressure. NIM at Sept 30 had been 2.6%.
“This is a solid and consistent performance in a very competitive market, which is important in time like these,” she said, noting that confidence had been beginning to return before the war against Iran began.
“The economic outlook remains uncertain and our focus is on maintaining the strength of the bank and supporting customers and the wider economy as challenges emerge.”
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