Australian Housing Dynamics and Affordability
AUSTRALIA HOME LOANS
WESTERN AUSTRALIA
Unemployment rate
SFD3 growth
Population Growth
2012 2013 2014 2015 2016 2017 2018 2019
3.9% 4.7% 5.0% 6.1% 6.3% 5.6% 6.1% 6.1%
13.8% 1.5% -1.8% -1.3% -7.3% -3.9% 0.3% -0.9%
3.1% 2.2% 1.1% 0.85% 0.63% 0.71% 0.88%
Exposure to WA has decreased since Mar-16 driven by the economic
environment and credit policy tightening (mining town lending)
Currently WA comprises 13% of portfolio FUM (and is decreasing),
however it comprises 27% of 90+ delinquencies (and one half of
portfolio losses¹)
Tailored treatment of collection and account management strategies
in place
Economic indicators²
WA OUTSTANDING BALANCE
$b
40
30
30
21
22
221
221
22
22
23
23
23
20
L
L
T
25
25
26
27
28
28
29
10
11
11
12
12
12
12
11
10
8
6
5
4
0
HOME LOANS AND WA 90+ DELINQUENCIES4,5
Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19
Interest Only
P&I Loan
Equity Loan
HOME LOANS COMPOSITION OF LOSSES¹
%
3.0
2.5
2.0
35%
48%
55%
57%
51%
49%
44%
51%
73%
1.5
65%
1.0
52%
45%
43%
49%
51%
56%
49%
0.5
27%
0.0
Sep
13
Mar Sep
14 14
Mar Sep Mar Sep Mar
15 15 16 16 17
Sep
17
Mar
18
Sep Mar
18 19
Sep
2H15
1H16
2H16
1H17
2H17
1H18
2H18
1H19
2H19
19
WA 90+ Rate
Portfolio 90+ Rate
Portfolio 90+ Rate without WA
WA
Rest of the portfolio
1. Losses are based on New Individual Provision Charges 2. Unemployment Rate as at September 3. State Final Demand (year on year growth) 4. Includes Non Performing Loans 5. ANZ
delinquencies calculated on a missed payment basis
ANZ
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