ANZ logs slight rise in overdue home loan payments

AUSTRALIAN lender ANZ Group said on Tuesday late home loan payments edged up in the quarter ended June, as sticky inflation and high borrowing costs impaired their ability to repay dues.

Mortgage payments past their due date for 90 or more days rose 5 basis points to 84 bps for ANZ’s Australian housing loans, the lender said in a limited quarterly trading update, which did not disclose its quarterly cash profit figure.

Banks, which traditionally benefit in a high interest rate environment, have seen their margins crimp and consumer arrears tick higher as inflationary pressures are eroding disposable income of the households.

ANZ, currently facing regulatory scrutiny over suspected bond trade allegations, said total provision charge to account for future bad and doubtful debts stood at around A$45 million at the end of the June quarter.

CET1 ratio, a measure of core capital banks are required to maintain, stood at 13.3 per cent as of June end, lower than the 13.5 per cent as of March end, the lender said. REUTERS