Days after Westpac reported that its credit quality improved during the June quarter, Macquarie Bank has released a June quarter Pillar 3 report that shows a similar improvement.

Macquarie Bank had total gross credit exposures of A$278.1 billion at the end of June, including $114.7 billion of residential mortgages, $78.6 billion of corporate loans, $5.1 billion of “SME corporate”, $3.3 billion of “retail SME” and $6.3 billion of “other retail”.

At June 30, $241 million of residential mortgages were in arrears (payments overdue by 90 days or more) – down from $255 million in the March quarter. Impaired facilities were down from $227 million to $222 million. Specific provisions were down from $12 million to $11 million.

In the SME corporate loan book, $27 million of loans were in arrears, compared with $33 million in March. Impaired facilities were down from $107 million in the March quarter to $95 million in the June quarter. Specific provisions were down from $44 million to $38 million.

All metrics were the same or better for the Retail SME and other SME segments.

One segment where arrears increased was in the corporate loan book. Arrears rose from $36 million in the March quarter to $74 million in the June quarter. Specific provisions also rose – up from $192 million to $196 million. Impaired facilities fell from $268 million to $207 million.

The bank also reported that its common equity tier 1 capital ratio rose from 11.5 per cent at March 31 to 12.3 per cent at June 30. The liquidity coverage ratio was 221 per cent.