More asking for help but borrowers resilient, says ANZ

Poppy Johnston | July 12, 2023

There’s been a modest uptick in the number of ANZ customers asking for help but the head of the big four bank says borrowers, overall, are proving resilient.

ANZ chief executive officer Shayne Elliott said some customers were struggling as rising interest rates pushed up borrowing costs but most were “managing their way through” the current financial pressures.

Higher interest rates have been inflating mortgage repayments, with the high cost of living also eating into household budgets. 

Addressing a parliamentary hearing on Wednesday, Mr Elliot said only six of every $1000 in its Australian home loans portfolio was overdue by more than 90 days.

“This is better than before the pandemic,” he said.

The bank boss offered three explanations for the display of resilience – the strong levels of employment, big savings buffers and robust credit standards that have kept lending responsible. 

But he said these were aggregate numbers and some Australian households were struggling, with the bank observing a “modest increase” in the number of customers asking for help. 

“We will continue to watch how our customers are going and support them when we can,” he said.

NAB chief Ross McEwan will also appear at the parliamentary economics committee hearing in Canberra on Wednesday.

He will be followed by the bosses of Westpac and the Commonwealth Bank on Thursday.

Committee chair Daniel Mulino said the two-day hearing was a timely opportunity to put the spotlight on the four banks, which control 80 per cent of the Australian market.

“Australian households and small businesses depend on these banks for general banking, mortgages and business loans,” Dr Mulino said.

“It is crucial our banks are resilient but also competitive.”