Temporary loan repayment deferrals due to COVID-19, November 2020

Many authorised deposit-taking institutions (ADIs) have granted temporary relief to borrowers impacted by COVID-19, allowing them to defer loan repayments for a period of time. To provide greater transparency of loan repayment deferrals, APRA is publishing:

• the aggregated data obtained from all ADIs in Australia, excluding foreign branches; and 
  
   
• data from ADIs with loans subject to repayment deferral.

Aggregate industry data on loans subject to repayment deferral

* the number of facilities does not necessarily indicate the number of borrowers as individual facilities with more than one repayment type may be reported more than once.

** to give an indicator of potential elevated risk in loans subject to deferral this chart compares loans subject to deferral to total loans across three key cohorts – loan to value ratio of greater than 90 per cent, investor loans and interest only loans. 

An accessible version of this dashboard is available here. 

Additional commentary

As at 30 November, according to data submitted by ADIs with over $20 million in loans subject to repayment deferral, a total of $60 billion worth of loans are on temporary repayment deferrals, which is around 2.3 per cent of total loans outstanding. Housing loans make up the majority of total loans granted repayment deferrals, and for the first time in November also have a higher incidence of repayment deferral with 2.4 per cent of SME loans subject to repayment deferral, compared to 2.8 per cent of housing loans.

 

Exits from deferral continued to outweigh new entries for the fifth straight month in November, with $32 billion in loans expiring or exiting deferral and $7 billion entering or being extended. Victoria remains the state with the highest proportion of loans subject to deferral amongst the states and territories, with 3.2 per cent of loans deferred compared with the rest of the country at 1.7 per cent.

Largest ADIs with loans subject to repayment deferral

An accessible version of this dashboard is available here. 

Explanatory notes

This data is sourced from the domestic loan portfolios¹ of APRA-regulated authorised deposit-taking institutions (ADIs), excluding foreign branches. The spreadsheet below contains data for all ADIs with total loans subject to temporary repayment deferral of greater than $20 million and more than 20 deferred facilities in any given reporting period. In addition, for privacy reasons, fields are masked where there is a non-zero value below $10 million or there are less than 20 facilities. For an entity where either the "new or extended in the month" field or the "expired or exited in the month" field falls below this threshold, both of these fields are masked.

Changes in total loans subject temporary repayment deferral occur due to several factors. These factors include (but are not limited to) new deferrals, exits from deferral, addition of interest charges on existing deferrals and customers paying down their loans subject to deferral. Note that the graphs displaying “movements” (top right on both dashboards above) only include exits, new or extended deferrals but do not include other factors that change the value of total loans subject to temporary repayment deferral. Also note that, when a borrower’s loan repayment deferral is extended it is reported in this data as both "expired or exited in the month" (as the initial deferral has expired) and "new or extended in the month" (as it has been extended). 

All data has been submitted to APRA on a best endeavours basis under relatively tight timeframes. As a result, data may be revised in future reports.

APRA will continue to publish this information on a monthly basis until loans subject to repayment deferrals are no longer a notable component of the ADI industry’s total loan portfolio.

Footnote:

¹Domestic loan portfolio refers to loans provided within Australia on the balance sheet of the licenced ADI.

Next issue

The December 2020 issue will be released on 29 January 2021.