Bendigo and Adelaide Bank has recorded growth in broker-originated home loans but a decline in home lending through mortgage managers.
In its half-year financial results, released this week, the regional bank reported a 4.1 per cent increase in mortgages through the broker channel over the three months to December 2015.
Home lending growth via mortgage managers fell 5.7 per cent over the period while the bank’s retail channel grew 6.6 per cent, below system at 7.7 per cent.
In an investor presentation, Bendigo and Adelaide Bank noted that the July 2015 APRA announcements have “improved the competitive environment” and that a “partial levelling of the playing field is having a positive impact on recent growth rates”.
“Improved performance in the broker direct channel follows the relaunch of Adelaide Bank's proposition,” the group said, noting that its mortgage manager channel growth was impacted by run-off in the bank’s heritage Investec portfolio and highly competitive pricing.
Commenting on the regional bank’s half-year financial results, Bendigo and Adelaide Bank managing director Mike Hirst made a point of highlighting the competitiveness in the home loan market.
“This last half saw extreme price competition for mortgages, with several competitors seeking to increase their balance sheet exposure to Australian home loans and some irrational pricing in the lead-up to changes in regulation,” Mr Hirst said.
“Of course, those changes were deemed necessary by the Financial System Inquiry to begin levelling the playing field for all banks,” he added.
Bendigo and Adelaide Bank announced an after-tax statutory profit of $208.7 million for the six months ending 31 December 2015.
Underlying cash earnings were $223.7 million, a 2.7 percent increase on the December 2014 half-year result.