ANZ flags ‘intense price competition’ in mortgage business
ANZ’s net interest margin improved in the three months through June against the backdrop of rising interest rates, but the lender has warned of “intense” home loan competition that has partly eroded the benefits of higher rates.
The bank’s net interest margin increased 0.03 of a percentage point in the quarter to 1.63 per cent, compared with 1.58 per cent in the first half.
“This was largely driven by the impact of rising rates, partly offset by intense price competition in the home lending portfolios in Australia and New Zealand,” the bank said.
“With interest rates projected to increase further in coming months, this is expected to be supportive for margins in the fourth quarter.”
ANZ said its home lending volumes increased by $2 billion in the period to run at an annualised rate of 3 per cent, and highlighted a particularly robust month in June.
