Lenders’ business loan balances fell for the second month in a row in June and now represent the weakest part of the bank lending market.
According to the latest Reserve Bank lending data, the business loan balances of authorised deposit-taking institutions fell 0.8 per cent in June 2020, after falling 0.6 per cent in May.
The annual rate of growth in business loan balance has fallen from 6.7 per cent in April to 4.8 per cent in June.
Owner occupier mortgages balances grew 0.3 per cent in June, compared with the previous month, and grew 5.4 per cent over the 12 months to June.
Investor mortgage balance were unchanged in June and fell 0.7 per cent over 12 months.
Personal credit balances fell 0.6 per cent in June and fell 10.5 per cent over 12 months.
According to the latest APRA data, among the big banks Commonwealth Bank increased its market shares over the 12 months to June – growing from 26.5 per cent in June last year to 26.7 per cent now.
Westpac, which has had processing problems in its mortgage business, suffered a drop in share from 25.2 per cent to 24.1 per cent.
NAB’s share fell from 15.8 per cent to 15.5 per cent and ANZ’s fell from 15.4 per cent to 14.7 per cent.
Macquarie made a big gain in share – up from 2.3 per cent to 2.9 per cent over the year. ME Bank suffered a big drop in share – down from 1.6 per cent to 0.9 per cent.