Thawing of frozen loans stalls as restrictions bite

The $229 billion of loans on repayment deferrals represents 8.5 per cent of $2.7 trillion in total loans, down from 9 per cent in July and 10 per cent in June.

The mixture of home loans to SME loans is broadly the same, with the value of home loans falling to $160 billion in August from $167 billion in July and deferred SME loans falling to $53 billion from $55 billion over the same period.

Lender level data shows Bank of Queensland remains the big lender with the highest proportion of deferred loans, accounting for 12 per cent of its total book. BoQ has frozen repayments of 11 per cent of its home loan book and 21 per cent of its SME loan book.

Earlier this week the bank announced it was ramping up provisions for bad debts to $175 million after taking into account the worsening impact of the coronavirus crisis.

ANZ has the highest proportion of home loans on deferral, with the data showing repayments on 12 per cent of its home loans as frozen. ANZ CEO Shayne Elliott has repeatedly encouraged borrowers experiencing problems to get in touch with the bank and put payments on hold.

Commonwealth Bank has the highest number of SME loans on deferral at 24 per cent of its total book. CBA elected to automatically defer the loans of its SME customers when the crisis hit, elevating the number of frozen loans on its books.

Foreign-owned lender HSBC continues to exhibit one of the lowest levels of deferrals with just 4 per cent of its total loan book frozen, including 5 per cent of its home loan book and 6 per cent of its SME loan book.

Among second-tier lenders Macquarie, AMP and ME continued to show elevated levels of deferred home loans at 10 per cent of their total housing book. Suncorp and Citigroup reported just 6 per cent of their books as frozen while ING reported just 4 per cent.

On the SME front, AMP reported 21 per cent of its SME book frozen while Bendigo and Adelaide Bank reported 14 per cent and Macquarie 13 per cent.

Suncorp and Citigroup both reported they had frozen repayments of 9 per cent of their SME book while ING said it had deferred repayments on just 8 per cent of its loan book.

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