NAB: More house owners falling behind on mortgage payments
SYDNEY: The National Australia Bank (NAB) said the percentage of homeowners more than 90 days behind on their mortgage payments had risen slightly in Australia’s two most populous states, amid increasing concern over the hot property market.
Australia’s fourth-biggest lender reported a 2.3 per cent rise in cash profit to A$3.29 billion (RM10.54 billion) for the first six months to March 31, slightly above analyst expectations, bolstered by lending growth.
The outlook for Australian banks, which are highly reliant on mortgage loans, has dimmed after the Australian Prudential Regulatory Authority on March 31 asked them to limit new interest-only lending to 30 per cent of total new residential mortgage lending, from 40 per cent.
NAB chief executive Andrew Thorburn said mortgage arrears had increased in the first half, including in the most populous New South Wales and Victoria, but from a low base.
“I think we should take a glass half full look at the Australian economy.”
Mortgage loans more than 90 days past due rose six basis points to 0.58 per cent between September last year and March.
NAB also increased its provisions by A$89 million relating to risks in the commercial real estate portfolio, as price growth slows and there are fears of an oversupply of inner-city apartment developments. Reuters