ANZ Reports Profit Growth Amid Falling Mortgage Demand

ANZ Group reported a 1% increase in third-quarter cash profit to A$1.90 billion, citing improved margins and higher lending volumes. However, the bank flagged a significant slowdown in mortgage demand following the Australian government's decision to scrap tax concessions for property investors.

Excluding a government scheme for low-deposit buyers, ANZ mortgage application values fell 5% from the second quarter and 12% between the federal budget announcement and the end of July. This decline reflects a broader trend across the Australian banking sector.

Other major lenders reported similar downturns. Commonwealth Bank of Australia noted a 15% drop in applications since May, while Westpac reported a 20% decline. Westpac further forecast that investor housing credit growth will halve next year as a result of the policy changes.