Banks - Australia: Bank Balance Tracker: Credit growth holds, deposit growth stalls

Research evidence excerpt

Banks - Australia: Bank Balance Tracker: Credit growth holds, deposit growth stalls

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Banks - Australia

Bank Balance Tracker: Credit growth holds,

deposit growth stalls

Industry Overview

ANZ > system on mortgage growth; NAB/MQG on deposits 30 June 2026

Mortgages: ANZ grew above system in May for the first time in twelve months; Equity

growing 1.5x system in investor while the other majors grew 0.7-0.9x system with sub- Australia

system growth in investor loans. MQG maintained growth well-above system at 3.4x, Banks-Multinational/Universal

albeit growth switched to owner-occupier. Corporate lending: NAB remains the largest

lender and grew 1.1x system, CBA and WBC also grew c.2x system in May. Deposits: Matt Dunger >>

system deposits were flat in May; MQG and NAB took market share from ANZ and BOQ. Research Analyst

Merrill Lynch (Australia)

Deposit pricing: Major banks lifted savings rates 75-100bp since Dec-25, tracking the +61 2 9226 5329

RBA cash rate to 4.35% (+25bp M/M, +50bp Y/Y); one-year term deposits now sit 5.05%. matthew.dunger@bofa.com

Aida Pita >>

Credit growth remains elevated, funding has gapped ResearchMerrill LynchAnalyst(Australia)

System credit growth held at 8.2% in May, vs 8.9% Sep-22 peak. Business credit grew +61 2 9226-5066 aida.pita@bofa.com

+10% Y/Y; housing held steady at +7.5% Y/Y. Investor grew +10.3% Y/Y outpacing

owner-occupier at +6.2%. We expect mortgage lending to slow to 3% vs business to

remain relatively resilient at c.5–7% supported by structural growth sectors despite Glossary:

weaker confidence See our note: Credit growth set to slow, cutting EPS (9 June 2026).

ADI: Authorised Deposit-taking Institutions

Exhibit 1: MQG leads the pack with double-digit growth in total lending and deposits