Posted March 09, 2018 17:19:29 The Australian Bank of Commerce has found big gains from mining, energy and banking sectors in the last two quarters.
The bank found strong growth in mining with an increase in mining-related deposits.
Its mining growth is expected to continue, it said in a report released on Tuesday.
It said it expects mining to account for a further 25 per cent of the bank’s net deposits this financial year.
The bank also expects growth in the mining and oil and natural gas sectors to be driven by the arrival of mining projects and other activity in the energy sector.
“These sectors are expected to add another 15 per cent to net lending in the second quarter of 2018,” the bank said.
For the mining sector, it expects a rise in net lending to be about 5 per cent, but that growth is likely to be more gradual and slower than the current 12 per cent pace.
In its statement, the bank noted that it has continued to reduce its mortgage lending to mining companies and banks.
However, it also noted that its net mortgage lending in Australia remains below the levels seen in the early 1990s.
Overall, the banking sector in Australia was also strong.
With the growth in residential property, the Australian Bank reported that its residential mortgage lending fell by 9 per cent in the year to March 2018.
That was also a sharp decline from the 15 per, to 9 per, percentage point decline in the first quarter of 2019.
Despite the lower rate of residential mortgage borrowing in the bank, it continued to grow its lending to other residential properties.
Of the three regions, it increased its residential lending in Queensland and Western Australia by 3 per cent and 4 per cent respectively, and in the Northern Territory by 5 per, 6 per and 8 per cent.
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