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Bank customers appear to be managing debt well with an increasing number ahead on their home loan payments.
The Bankers' Association's data collected from 10 banks over the first half of the year indicates the number behind on loan repayments dropped to 1.05 percent, from two percent.
"Nearly 46 percent of people with a home loan are ahead on their repayments, which is up 1.8 percent compared to the previous six months," Bankers' Association chief executive Roger Beaumont said.
Despite the higher interest rate environment, banks issued 44,681 new home loans, with 58.2 percent issued to first home buyers.
The average value of all home loans was $304,655, with loans to first home buyers at $505,741 on average.
"People are also managing their credit cards well, with 66.6 percent of card balances paid off in full without incurring any interest costs."
Beaumont said it was important for any consumers to contact their bank if they were struggling with debt.
"The sooner you talk to your bank, the more likely they'll be able to help," he said.
"While consumers are being smart with home loans and credit cards, it's also fair to say that banks are continuing to lend responsibly."
Growth in digital banking continues
The dramatic shift to online and mobile services during Covid lockdowns had resulted in about three-quarters of all bank customers registered for online or mobile banking, Beaumont said.
"There's still a need for physical banking services for those who can't or prefer not to bank online," he said, adding banks were trialling a regional banking hub trial in communities without a bank.
The hub served the customers of the six largest banks, which shared the cost of the services.
