The major bank has grown its broker force by 8 per cent over the year to 30 September as third-party volumes approach $100 billion.
NAB’s full-year results, released Thursday (2 November), show that the group recruited an additional 338 brokers across aggregators PLAN, Choice and FAST for the 12 months ended 30 September 2017.
There are now 4,637 brokers operating under NAB-owned aggregators, up by 33 per cent since 2014.
Mortgage volumes through the third-party channel hit $98.5 billion over the year to 30 September, up by 12 per cent on the $88.2 billion recorded in 2016.
NAB delivered a $5.3 billion statutory net profit for the year and cash earnings were up by 2.5 per cent to $6.6 billion.
“Our FY17 result represents another year of consistent delivery,” NAB CEO Andrew Thorburn said. “Cash earnings and revenue are up, asset quality is a highlight again, and we have further strengthened our balance sheet.
“We have made strong progress over the past three years and now we announce an acceleration of our strategy.
“This involves an estimated $1.5 billion increase in investment by the end of FY20 to further improve the experience for our customers, reshape our workforce and grow our bank.
“Cost savings of greater than $1 billion are targeted by the end of FY20 as we further simplify our business. We have a clear plan to deliver for our customers. We move forward with confidence and a purpose to ‘back the bold’ who move Australia forward.”
NAB grew its mortgage book by 5.1 per cent over the year to $292.6 billion. Broker-originated loans accounted for 33.7 per cent of the total portfolio as at 30 September 2017, up from 31.7 per cent the previous year.
In his economic outlook, Mr Thorburn noted: “Some slowing in the housing cycle and a moderation in housing credit is expected, but downside is likely to be limited by strong population growth and low unemployment.”
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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