Macquarie Bank has not been spared rising loan delinquencies and the need to implement a substantial repayment deferral program.
The bank reported in its latest Pillar 3 disclosure that mortgage delinquencies (past due 90 days or more) rose 25 per cent from A$148 million at the end of March to $185 million at the end of June. Specific provisions rose from $3 million to $4 million over the same period.
However, impaired mortgages fell from $378 million to $343 million.
Small and medium business loan delinquencies rose 14.9 per cent to $54 million.
Macquarie Bank had 13,331 home loans and credit card accounts worth $6.5 billion under deferral arrangements up to June 30. At the end of March its home loan portfolio was worth $52.1 billion.
It had 52,330 vehicle and asset finance accounts worth $2.4 billion on deferral, and 1855 business banking accounts worth $1.7 billion.
At the end of March, Macquarie’s vehicle finance portfolio was worth $13.7 billion and the business banking portfolio was worth $9 billion.
At June 30, the bank’s common equity tier 1 capital ratio was 13.2 per cent – up from 12.2 per cent at the end of March.
Total risk-weighted assets fell from $95.6 billion in March to $89.2 billion at the end of June. This was largely due to a fall in corporate exposures.
Total gross credit exposure fell from $157.9 billion to $151.2 billion over the same period, with $104 billion on the balance sheet.