“In line with the broader economic environment, the number of ANZ home loan customers in hardship has risen over the last year to around three in 1000 people. The number for small business customers is similar, at around two in 1000,” Elliott told a briefing on environmental, social and governance (ESG) issues.
“While these numbers are still low in historical terms, we expect they will continue to rise given the external environment, and we are working hard to help people who are struggling.”
Speaking at the same briefing, ANZ’s customer fairness adviser, Evelyn Halls, said the bank had put in place an “action plan” to improve the outcomes and experience for customers needing support. The plan focused on areas including better communication, improving training and policies, and specialist support for vulnerable customers.
In a sign of the pressure on borrowers, Fitch Ratings on Thursday said the number of customers falling behind on their home loan repayments had hit an eight-year high.
ANZ’s chief executive, Shayne Elliot.Credit: Arsineh Houspian
The rating agency tracks payment rates on home loans contained within residential mortgage-backed securities, which are packages of mortgages pulled together and sold to investors.
It reported that the proportion of loans within these securities that were at least 30 days behind in repayments climbed to 1.3 per cent in the March quarter. The proportion in the early stage of arrears, which is between 30 and 59 days in arrears, lifted to its highest level since February 2016.
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For non-conforming loans, which are those to people with poor credit histories or self-employed borrowers with low documentation, the arrears rate climbed for a third consecutive quarter to its highest level since 2019.
Monthly inflation data from the Australian Bureau of Statistics on Wednesday showed consumer prices rose by 4 per cent over the 12 months to May, up from 3.6 per cent in the 12 months to April.
Financial markets now put the chance of an interest rate rise at the Reserve Bank’s early August meeting at 50-50.
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