APRA May-26 Banking Stats Business acceleration offsets slight slowdown in mortgages … Budget impacts still to come

Research evidence excerpt

APRA May-26 Banking Stats Business acceleration offsets slight slowdown in mortgages … Budget impacts still to come

below APRA-system outcomes (6.2%), with NAB

the softest (4.3%) and WBC the strongest of the four (5.8%). Challengers Source:adjustments).APRA,Note:J.P Morgan1) FinancialestimatesInstitution(for securitisationlending is

remained the clear growth leaders, led by MQG at 21.2% and ING at 7.4%. excluded from all bank-specific business growth rates. 2)

ANZ includes SUN

• Business lending (ex-FI): RBA business growth (excluding Financial NB: All growth rates are mom annualised unless otherwise stated.

Institutions) accelerated at the system level to 11.7% in May (from 8.6% in

Growth rates adjusted for new entrants. Table 1 includes business

April). The APRA ADI data shows trends have diverged among the major

lending balances (ex FIs), but total loan balances include FI lending, as

banks. WBC (14.5%) and CBA (12.8%) grew strongly above system on an ex-

well as Govt’s and Community Groups.

FI basis, while NAB (8.6%) was modestly above and ANZ was weak (2.0%).

However, we note that lending to FIs was a large tailwind for ANZ in the period

and when included the bank grew at 12.0% in the month. Lending to financial

institutions was a tailwind to all major banks in the month.

• Non-majors: MQG again delivered very strong broad-based growth (housing

21.2% and business ex‑FI 15.2%), consistent with continued expansion of

market share which has reached 7.2% in housing. JDO remained strong in

business and overall balance sheet growth (GLA 30.7%), which is consistent

with seasonality for 4Q26. BEN’s growth accelerated in May due to stronger

mortgage activity. BOQ was the clear negative outlier in housing (-22.1%) but

we understand this has been driven by MoM data issues.