Suncorp on rise with mortgages

SUNCORP Bank has increased mortgage lending 2.8 per cent in its third quarter as house prices continue to forge higher.

And the regional lender has flagged modest growth in its home-loan portfolio as rivals become more conservative due to regulatory intervention.

The financial services group says it lent $44.3 billion in home loans over the three months to March and is optimistic it can benefit from the Australian Prudential Regulation Authority’s limit on interest-only lending.

“Suncorp Bank has an opportunity to benefit from changes in competitor offerings as they align to more conservative settings and expects modest growth in both home lending and business lending portfolios,” the group said in a statement yesterday.

The Brisbane-based bank expressed support for the $6.2 billion levy on Australia’s five biggest banks, which was announced by the federal government in this month’s Budget.

While the banks targeted – the Commonwealth Bank, Westpac, ANZ and National Australia Bank – are fiercely resisting the impost, Suncorp banking chief David Carter said it had the potential to support competition.

Suncorp shares closed up 0.6 per cent yesterday at $14.09.