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Most Deferred Loans Back To Normal

Most Deferred Loans Back To NormalThe continuing upturn in property markets is being reflected in outcomes for the big banks.

ANZ has shown the strongest revenue trends, picking up market share gains in its single biggest business, the Australian home loan market.

The bank has reported a net profit for the December quarter of $1.624 billion, doubling its first half quarterly average of $773 million.

CEO Shayne Elliott says the improvements are reflected in the sharp reduction in customers on loans deferrals. ANZ gave repayment holidays to 145,000 home loan and commercial customers in Australia and New Zealand to help them manage the pandemic impact. But, in Australia, 84% of deferred home loans have rolled off with 98% returning to repayments, compared to 92% of deferred mortgages rolled off in New Zealand, with 86% returning to repayments.

Chief risk officer Kevin Corbally says “a meaningful portion” of those home loans that remained on deferral were due to roll off within the next month.

The Australian Banking Association, using the latest data from the nation’s biggest banks, calculates that 91% of deferred loans have resumed repayments.

Just 5% of deferred business loans and 13% of deferred housing loans are yet to resume repayments, the ABA says.

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