ANZ 2023 Half Year Results
ANZ 2023 Half Year Results
AUSTRALIA HOME LOANS - OUTCOME OF RATE RISES
1.
2.
3.
ANZ interest rate buffer & floor
Home loan applications are assessed at the greater of the customer
interest rate plus the interest rate buffer or an interest rate floor
Feb 20
Feb 21
Nov 21
Current
Floor
5.25%
5.1%
Buffer above
+2.5%
+3.0%
customer rate
RBA official cash rate
Official cash rates (OCR) have risen by 3.75% from low of 0.1% to
current rate of 3.85%.
4%
3%
2%
ANZ Home Loan Portfolio, Mar 23
Total Portfolio ($b)
293
Current Rate
≤ Assessed Rate¹
74%
With the rising rate environment, 26% of
customers are now on interest rates
higher than their assessed interest rate
~0.7% of the total portfolio is in the
higher risk category, of which ~50% had
uncommitted monthly income (UMI)³
>$1k at assessment
Origination LVR
profile
76
Lenders mortgage
insurance
~$2b composition:
~$0.5b investor loans
~$1b UMI > $1,000³
~$11m 90+ DPD
1%
Current Rate
> Assessed Rate
26%
80% or
less LVR
84%
Customer has 3
months+ savings
buffer²
48%
0%
>80% LVR
Nov
Feb
20
21
Apr
22
Jul
22
Oct
22
Jan
23
Apr
23
Mar 23
16%
Mar 23
Yes
12
52%
Mar 23
69%
No Yes
/No
31%
Mar 23
Accounts with missing assessed rate information are grouped into customer rate ≤ assessed rate based on the assumption that the assessed rate used in the mortgage assessment stage to account for borrower's ability to repay at origination
should be higher than the current interest rate.
Buffers are calculated at customer level, incorporating all Retail debts within the customer cluster at ANZ, and all funds available in ANZ redraw, offset and transaction and savings accounts
Uncommitted monthly income (UMI) is determined after income and expense buffers and shading are applied, and based on verified income only
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