Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

MyState reports 15% growth in broker settlements

growth arrow up ta min

growth arrow up ta min
Reporter 2 minute read

Broker-originated mortgages accounted for 74.5 per cent of settlements, according to the lender’s half-year results, a 15 per cent rise on the prior corresponding period.

In its half-year results for the 2018 financial year (HY18), MyState Bank reported a 15 per cent growth in broker-originated residential loan settlements.

Further, broker-originated owner-occupier mortgages with a loan-to-valuation ratio (LVR) of less than 80 per cent rose by 49 per cent from the previous corresponding period.

The lender’s basic home loan product also accounted for 35 per cent of broker settlements since it launched the offering in September 2017.

In his presentation to the media, MyState managing director and CEO Melos Sulicich stated that the bank plans to further develop its third-party channel. 

“We have now got a really high-quality group of broker relationship managers based in Sydney, Brisbane and Melbourne. 

“We’ve also just appointed a new marketing executive to help grow that part of the group as well. 

“It’s focusing on having the right BRMs, focusing on the right brokers, working with them to service their customers and ensure we’ve got a really good service proposition.

Advertisement
Advertisement

“Our aim is to make sure that we continue to manage our service proposition and our processes and systems to give brokers the best possible service we can to make sure the customers are looked after in a timely and easy manner.”

MyState’s loan book also grew by 5 per cent to $4.3 billion, with its net profit after tax (NPAT) increasing by 4 per cent to $15.8 million.

The bank noted, however, that loan book growth was “constrained by regulatory requirements on interest-only and investor lending”.

Mr Sulicich echoed the Productivity Commission’s criticism of the Australian Prudential Regulation Authority’s (APRA) “blunt” lending measures.

“[Regulatory] settings and priorities are a major problem. Regulatory settings must change with a renewed focus on customer interests,” the CEO said. 

PROMOTED FEATURES


When asked why MyState’s underlying loan growth wasn’t as strong as competing banks, the executive argued that it was a result of the “competitive skew” caused by APRA’s regulations.

The CEO also claimed that the lender has lost broker business because of its inability to offer a higher volume of investment and interest-only loans.

“The communications with brokers are a bit more complex. Unfortunately, business goes elsewhere, so we’ve been through a bit of a lump with that,” Mr Sulicich said.

[Related: ]

MyState reports 15% growth in broker settlements
growth arrow up ta min
TheAdviser logo
growth arrow up ta min

 

more from the adviser
remuneration money Conflicted remuneration defined in new regulations

The federal government has released final regulations that define...

empty wallet COVID-19 erodes FHB deposit savings: MyState

Nearly a quarter of those Australians who have dipped into their ...

signatories f6bb COBA welcomes closer ties between regulators

The association for customer-owned banks has said that the MOU be...

FROM THE WEB