BOQ’s broker-lodged loans jump 39%

According to the results, BOQ’s broker channel recorded a home lending growth of $800 million, or 39 per cent, compared to the second half of FY21 (H221).

The non-major banking group stated in its report that it believes this performance was the result of the “reactivation of the broker network”, combined with “new quality third-party relationships” as well as the “investment and uplift in the broker support ecosystem”.

However, managing director and chief executive George Frazis said, while speaking during the results presentation, that the group’s growth over this period was also partly the result of an improved broker experience.

The group's gross loans and advances were reportedly $78.95 billion at the conclusion of H122, rising by 9 per cent period-on-period. 

The bulk of this was from residential loans at $61.64 billion, which reported a period-on-period increase of 8.8 per cent (roughly $2.59 billion).

“Our Home Buying Transformation Program has delivered material improvements in the customer, broker and banker experience through reduced turnaround times and improved processes,” Mr Frazis said. 

The group also stated in its report that, during H122, it provided brokers with the ability to “automatically load BOQ applications into [its] lending platform”, which it claims resulted in faster turnaround times.

During the March 2021 quarter, BOQ was reported to have a median time of 18.8 days to unconditional approval via brokers.

According to the March 2022 Broker Pulse survey, BOQ’s wait time was 16 days.

In a statement supplied to The Adviser, general manager home buying James Sheffield added that the bank believes this stronger broker channel performance was “driven by our work in ensuring we are improving tools, such as the launch and development of broker portals including the latest one for our ME [Bank] brand, and in our delivery of consistent service with our strong time-to-yes levels”.

The group noted in its report that ME’s growth of $254 million over this half – its first uptick following its 2021 $1.4 billion nosedive – was largely the result of “re-energising the broker and customer experience” via the “delivery of mortgage simplification and integration activities”.

Settlement volumes were also reported by the non-major banking group as increasing by 12 per cent compared to the second half of FY21.

Further, it reported that its net interest margin (NIM) fell during the first half of FY22, dropping from H221’s 1.86 per cent to 1.74 per cent.

[Related: ME Bank unveils new broker portal]