Business lending in Australia experienced significant growth in February, surpassing the expansion seen in residential lending. The latest data from the Australian Prudential and Regulation Authority (APRA) revealed a notable increase in business loans provided by Australian banks compared to lending for residential purposes.
According to APRA, business lending to non-financial entities such as retail, manufacturing, and food services surged by 0.9%, amounting to $9.8 billion and reaching a total of $1.1 trillion in February 2025. In contrast, residential lending saw a growth of $7.5 billion (0.33%), totaling $2.29 trillion during the same period.
Breaking down the residential lending figures, owner-occupier loans contributed $5.4 billion (0.35% increase), while investor loans added $2.1 billion (0.29% rise).
The major banks in Australia, commonly known as the big four, demonstrated robust growth in business lending compared to residential lending. Each of these banks reported substantial increases in business loans relative to their residential loan portfolios.
ANZ experienced a 0.51% growth in business lending, amounting to $760 million, reaching a total of $147 billion. In comparison, ANZ’s residential lending book grew by $1.2 billion to $311 billion, with owner-occupier loans increasing by 0.46% and investor loans by 0.26%.
Maintaining its market dominance, the Commonwealth Bank of Australia (CBA) witnessed a remarkable surge in its business loan book, rising by $3.36 billion (1.6%) to $209 billion, representing nearly one-third of the total business lending growth in February. CBA’s residential lending also performed well, increasing by $1.74 billion (0.29%) to $580 billion.
NAB recorded the second-highest increase in business lending among the big four, with a $2.15 billion rise (0.92%) to $233 billion. Its residential loan book grew by $841 million, with owner-occupier loans increasing by 0.34% and investor loans by 0.09%.
Westpac saw a notable 1.18% increase in its business lending book, amounting to $2.03 billion and reaching $174 billion. The bank also observed a slight rise in its residential loan book by $509 million, with owner-occupier loans increasing by 0.17% and investor loans by 0.08%.
The surge in business lending compared to residential growth reflects the evolving economic landscape in Australia and the increasing focus of banks on supporting businesses across various sectors. This trend signifies a positive outlook for the business sector and the overall economy, highlighting the importance of business loans in driving economic growth and stability.
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