ASB records bumper lending in first quarter
ASB reported strong lending in the three months to March this year, and the bulk of that has come from borrowers with more than 20% equity in their loans.
Thursday, May 28th 2015, 12:37PM
Its loan book grew by a significant $746 million (1.76%) in the March 2015 quarter, by far the best result since LVR restrictions were introduced.
From the September 2012 quarter through 2013 quarter ASB was dramatically increasing its high LVR lending. The highest increase was in December 2012 when the loan book increased $932 million with $882 million of that increase in the high LVR range.
High LVR loans went from just 19% of the total book in June 2012 to 23% of the book in September 13. At the end of March this year these loans have dropped right back to just 18% of the book.
Prior to the high growth between September 2012 and September 13 the loan book had actually shrunk by $19 million in the year to June 12. Then during the high LVR lending spree year to September 13 the book grew by over $3 billion.
Growth slowed after September 13 but it was all in low LVR lending with high LVR loans dropping steadily. Quarterly growth slumped as low as $233 million (0.55%) in the December 14 quarter so March 15 has seen a massive turnaround more than trebling the previous quarter growth.ASB Loan Book by LVR
| $Billion | $Billion | ||||
| 31/03/2014 | 31/12/2014 | 31/03/2015 | Annual Change | Quarter Change | |
| 0-59% | 11.294 | 11.321 | 11.635 | 0.341 | 0.314 |
| 60-69% | 7.571 | 7.801 | 7.972 | 0.401 | 0.171 |
| 70-79% | 13.535 | 15.033 | 15.562 | 2.027 | 0.529 |
| 32.400 | 34.155 | 35.169 | 2.769 | 1.014 | |
| 80-89% | 6.029 | 5.472 | 5.322 | -0.707 | -0.150 |
| 90%+ | 3.098 | 2.720 | 2.602 | -0.496 | -0.118 |
| 9.127 | 8.192 | 7.924 | -1.203 | -0.268 | |
| 41.527 | 42.347 | 43.093 | 1.566 | 0.746 |
| « Chinese banks creeping into lending market | New LVR rules to cut Auckland house price inflation » |
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