It seeks up to $35 billion for funding this year amid mortgage demand
ANZ has reported significant lending growth within its Australia retail and commercial sectors, as investments made in home loan processing capabilities and an enhanced broker experience have yielded continuous benefits.
“We are continuing to grow our Australian Home Loan book profitably by continuing to offer reliable turnaround times,” the banking group said in its market update on Monday. “In line with that, we are competitive but not market leading on pricing. Lending growth was substantially self-funded across both divisions by deposits.”
ANZ’s group revenue matched the quarterly average of the first half of fiscal year 2023, standing at $5.26 billion, with non-markets revenue also aligned with its previous half-yearly average of $4.69 billion, supported by an increase in average interest-earning assets.
The bank’s institutional division, particularly its markets business, experienced a positive start to the year, with revenues slightly exceeding the $575 million average of the first half of the fiscal year 2023.
The bank, led by chief executive Shayne Elliott (pictured), also said it may require $30 to $35 billion to cover funding costs this year, amidst a surge in demand for cash driven by a competitive mortgage market and the expiration of billions in low-cost pandemic funding.
The bank reported that, following the acquisition of $39.9 billion in wholesale debt funding last year, it is considering raising additional funds. So far in 2023, ANZ has already secured $3 billion from the funds raised, alongside issuing $16 billion in term funding.
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