Working out Westpac's home loan book
The bank's general disclosure statement (GDS) for the quarter for its New Zealand branch, which includes the operations of its New Zealand subsidiary, shows, using the same capital adequacy-based measure GoodReturns has been using since December 2002, its mortgage book grew by $70 million to $34.18 billion in the three months.
As Good Returns has already reported, the same measure in the GDS for Westpac's subsidiary shows its mortgage book grew by an unbelieveable $3.53 billion to $32.68 billion in the same three months.
Under Reserve Bank rules, the branch GDS is prepared using Basel l rules while the subsidiary's uses Basel ll rules, so some difference is to be expected, although Westpac does no mortgage lending through its New Zealand branch.
The branch GDS note on loans shows housing term loans growing by $80 million to $34.22 million in the three months. The subsidiary GDS showed housing term loans at $34.3 billion at December 31, $53 million higher than at September 30.
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