Money in the bank hits $1.48 trillion + where will ANZ sit in the pack following the ANZ-Suncorp merger?

Australians tucked an additional $6.53 billion away in the bank in May as deposits from households continued to hit record highs.

The total amount saved in the bank from households is now $1.481 trillion – the 11^th consecutive record high, according to the latest APRA monthly banking statistics, released for the month of May.

This means household deposits have now risen by over $210 billion since the start of the rate hikes (April 2022 vs May 2024).

Note: deposits from households include term deposits, transaction accounts, mortgage offset accounts and savings accounts on the books of authorised deposit-taking institutions (ADIs).

Total deposits by households, May 2024

Source: APRA monthly authorised deposit-taking institution statistics.

Total deposits by households: APRA

Source: APRA monthly banking statistics.

ANZ’s household deposits to leapfrog NAB’s after Suncorp merger

ANZ currently has the fourth largest value of household deposits on its book, with 11.7 per cent of all household deposits among the banks.

However, Suncorp’s 2.4 per cent share of deposits will see ANZ overtake NAB in terms of value of households deposits when the two banks merge, taking it to 14.1 per cent or almost $209 billion.

Banks with the largest value of household deposits

Source: APRA

Home loan books continue to grow

The total value of housing loans to households - which includes both owner-occupied and investor loans - increased by $11 billion in the month of May, or 0.5 per cent, with all four big banks recording growth in their loan books.

Westpac posted the biggest growth out of the big four banks with a monthly increase of $3 billion, which translates into a 0.6 per cent increase in its loan book.

Macquarie surged ahead again this month with a $1.37 billion rise in the total value of its home loan book (1.2%).

The ANZ-Suncorp merger, when complete, will see ANZ move into third position in the jostle for market share among Australia’s largest home loan lenders.

NAB and ANZ currently have 14.5 per cent and 13.6 per cent share of all ADI loans respectively, however, ANZ’s share is set to rise to 16.0 per cent with the merger.

Big four banks + Macquarie + Suncorp: loans to households, housing: May 2024

Source: APRA. *Authorised deposit-taking institutions. Note: loans to households: housing is total of both owner-occupier and investor loans as recorded by APRA.

RateCity.com.au research director, Sally Tindall, said: “Money in the bank has hit a new record high every single month since mid last year.”

“Australians now have $1.48 trillion stashed in the bank – a rise of more than $210 billion since the start of the RBA hikes. That’s an astonishing buffer considering the financial pressure many households are under,” she said.

“With tax time right around the corner and extra cash coming down the line via the government’s stage three tax cuts and the electricity bill rebate, this total balance is likely to continue to climb in the second half of the year as many Australians focus on building up their buffers.

“A lot of households will use the extra cash from the stage three tax cuts and other government relief to shore up their budget and pay down rising credit card debt, however, those who are managing to stay afloat are likely to bank at least part of this extra cash.

“Westpac and Macquarie continued to post strong growth in their residential mortgage books, while ANZ is set to take the reins as Australia’s third largest home loan lender once the Suncorp merger goes through.

“The government’s requirement for ANZ to keep both banks’ branches open for the next three years will help settle some nervous Suncorp customers. It has also rightly pressed for the bank to join the Bank@Post program.

“Australia Post plays an important role in keeping competition in the banking sector alive, because of the Bank@Post services it provides.

“Cash might no longer be king, but there’s still reasonable demand for in-person banking transactions such as depositing and withdrawing cash, and while there are limits to the services Bank@Post can provide it still plays a valuable role across the country,” she said.

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