ANZ Bank flags slower mortgage lending growth amid cooling measures

Elliott: ‘It is clear that the regulator, with the gap between wage growth and credit growth, is looking for actions to bring those two closer together.’ – Reuters

SYDNEY: Australia and New Zealand Banking Group (ANZ) expects regulations designed to cool Australia’s overheating housing market to slow lending growth, heaping pressure on banks to cut costs, chief executive Shayne Elliott said.

Australia’s third-biggest lender reported a 23% rise in first-half cash profit to US$3.41bil (US$2.57bil) for the first six months to March 31, missing expectations and triggering a 3% fall in the share price, its biggest one-day decline in nearly six months.