ANZ March quarter deposit growth more than double lending growth

By Gareth Vaughan

ANZ New Zealand, the country's biggest bank, grew deposits by more than twice as much as lending in the March quarter continuing a recent trend at the big banks of deposit growth easily outstripping lending growth.

The bank's latest General Disclosure Statement (GDS) also shows ANZ, which includes the ANZ and National banks, UDC Finance and fund manager OnePath, paid its Australian parent a NZ$400 million dividend on April 27. That's almost as much as in its full 2011 financial year, when ANZ paid NZ$492 million.

ANZ grew gross loans by NZ$341 million in the three months to March 31 this year, to NZ$95.164 billion. The bulk of the growth came through housing loans, with these up NZ$204 million to NZ$53.647 billion. Non-housing term loans - lending to businesses and farmers - fell NZ$225 million to NZ$37.321 billion.

Deposits rose by NZ$749 million to NZ$66.456 billion with term deposits up NZ$789 million to NZ$33.738 billion. If commercial paper is included, as it is in ANZ's "deposits and other borrowings" disclosure, the increase was NZ$1.527 billion.

BNZ and ASB, the other two of the big five banks to release a GDS for the March quarter so far, also grew deposits by more than lending. BNZ's total customer deposits rose NZ$716 million, almost double the NZ$395 million rise in gross lending. And ASB grew deposits by NZ$966 million, despite a NZ$65 million drop in term deposits, while its total advances to customers rose NZ$289 million.

In the previous quarter, covering the three months to December 31, the country's big five banks - combined - took in more than five times as much money in deposits than they grew gross lending by, with deposits up NZ$5.3 billion and gross loans rising just NZ$992 million.

Based on ANZ's residential mortgage loan-to-valuation ratio (LVR) disclosure, home loans with LVRs over 90% - both on and off balance sheet - fell again, down NZ$10 million to NZ$4.632 billion. ANZ's CEO David Hisco has criticised 90% plus LVR lending by his rivals, questioning whether it's good for customers or a good use of bank funds. However, ANZ grew its home loans with LVRs between 80% and 89% by NZ$565 million to NZ$7.745 billion.

ANZ's total assets fell NZ$371 million in the three months to March 31 to NZ$124.738 billion, total liabilities fell NZ$499 million to NZ$115.736 billion, and total equity rose NZ$128 million to NZ$9.002 billion.

The tier one capital ratio, representing shareholders' funds in ANZ, rose to 11.3% at March 31 from 11% at December 31. The total capital ratio rose to 12.6% from 12%. The Reserve Bank mandated minimums are currently 6% and 8%, respectively.

The GDS shows total individually impaired assets down NZ$73 million in the March quarter to NZ$1.626 billion, but 90 day past due assets up NZ$29 million to NZ$295 million.

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