Lenders’ business loan balances grew by 11.6 per cent over the 12 months to April – the first time business loan growth has hit double digits since 2008.
According to the latest Reserve Bank data, business loan balances grew by 1.4 per cent in April, compared with the previous month, more than double the rate of growth in housing loan balances that month.
Housing loan balances have stabilised at an annual growth rate of 7.9 per cent, while business loan balances have grown strongly this year.
This time last year business loan balances were falling, as they did through much of 2021.
The growth in business banking is good news for lenders looking to boost their margins. NAB reported in its half-year results that business and private banking NIM was 2.82 per cent – down just 1 basis point compared with the March half last year.
Personal banking NIM fell from 2.05 per cent to 1.93 per cent over the same period.