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Mortgages drive $ 1.45 billion in bank profits in the June quarter

New Zealand banks benefited $ 1.45 billion in the three months to June with a 6% increase in mortgage lending.

Thursday, September 23, 2021 11:18 AM

According to KPMG’s latest financial institution performance survey, the banking sector remains highly profitable, albeit with a slight decline in the first quarter of this year.

According to advisory firms, loan books are more heavily weighted towards the housing market, away from consumer and corporate lending.

Banks’ mortgage lending increased by 6% as the mortgage market peaked earlier this year. Overall lending increased by 2%.

Bank mortgage books are focused on owning homes, according to the report, but more than 9,000 first homebuyers stepped into the real estate ladder during the quarter.

A KPMG report (pictured) by bank manager John Kensington points out that high LVR lending to first-time homebuyers has declined slightly.

Approximately 34% of first-time homebuyers have taken high LVR mortgages in three months, from more than 50% in the last three months of last year.

In three months, Kiwi Bank achieved the largest growth in its loan books, up more than 13%.

ASB continued to grow by 9.8%, but Cooperative Bank confirmed that its books grew by 7.83% during the period.

tag: KPMG

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Mortgages drive $ 1.45 billion in bank profits in the June quarter

Source link Mortgages drive $ 1.45 billion in bank profits in the June quarter

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