For a transcript of the conversation click here.
At ANZ’s first half result presentation in May, the bank foreshadowed home loan volumes in Australia declining during the June quarter, Owner Occupied loans by 0.2 per cent and Investor loans 1.8 per cent (June 2019 compared with March 2019).
“The time to say ‘yes’ to the customer was too long,” Hand conceded. But applications improved in July with the improved credit policy clarity and reduced approval times.
Hand also emphasised the better application rate was not at the expense of credit quality. Nor had the bank shifted its emphasis away from owner occupiers.
He said ANZ saw owner occupiers as the “prime market” but the bank had “probably overcorrected and ignored the investor to an extent”.
“We've seen investor come back in recent applications to be about 25 to 30 per cent of our volumes.”
Hand also spoke about the transformation project under way in the Australian banking operations.
You can hear the full conversation in the video above.
Andrew Cornell is managing editor of bluenotes