Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Major bank suffers blow in broker space
Powered by MOMENTUM MEDIA

Website Notifications

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

Major bank suffers blow in broker space

arrow down red arrow down red
Charbel Kadib 3 minute read

A big four bank’s share of the third-party channel has dwindled over the past 12 months, with the lender experiencing the sharpest fall in broker market share.

According to the Australian Finance Group’s (AFG) latest quarterly index – which is based off data collected by the aggregator’s network of 3,000 brokers – ANZ’s share of the broker market slipped 4.2 per cent in the 12 months ending 30 June 2019, from 12.7 per cent to 8.5 per cent.

As of 30 June 2019, ANZ’s market share ranked fourth in AFG’s index, down from second place 12 months prior, with the bank overtaken by non-major lenders Macquarie Bank and white label AFG Home Loans, the former of which boasted the sharpest increase in market share, up 4.4 per cent from 5.3 per cent to 9.7 per cent.   

ANZ’s dwindling presence in the broker space has coincided with a continued contraction in its home loan portfolio, as highlighted by the Australian Prudential Regulation Authority’s (APRA) latest monthly banking statistics.

The APRA data revealed that ANZ’s portfolio slipped deeper into negative territory, declining by approximately $800 million in the month ending 31 May 2019, from $256.3 billion to $255.5 billion.

Advertisement
Advertisement

For the first five months of 2019, ANZ reported a cumulative contraction in its home loan portfolio of approximately $3.2 billion, down from $258.7 billion as at 31 December 2018.  

ANZ CEO Shayne Elliott has previously conceded that the bank’s weakened position in the mortgage market is partly attributable to the bank’s response to increased regulatory scrutiny in the lending environment, which he acknowledged was “clumsy”, adding that ANZ “over-shot” in its policy response.

CBA continues to dominate broker space

AFG’s index has also suggests that the Commonwealth Bank of Australia (CBA) continues to boast the largest presence in the broker space.

Over the 12 months to 30 June 2019, CBA’s market share grew from 15.3 per cent to 17.7 per cent, well ahead of second-placed Macquarie.

On a state-by-state basis, CBA boasted the highest market share in four of the five states included in the index, with its subsidiary Bankwest topping the list in Western Australia.  

CBA’s market share was highest in Queensland (25.3 per cent), followed by Western Australia (18.5 per cent), Victoria (18.1 per cent), South Australia (15.2 per cent) and NSW (13.6 per cent).

When including volumes lodged to its subsidiary Bankwest, CBA’s total share increased to over a quarter of the overall market (25.1 per cent).

[Related: FHBs help non-majors hit record high in broker space]

Major bank suffers blow in broker space
arrow down red
TheAdviser logo
arrow down red
Charbel Kadib

Charbel Kadib

Charbel Kadib is a journalist on The Adviser and Mortgage Business.

Before joining Momentum Media in 2017, Charbel held roles with public relations agency Fifty Acres, and the Department of Communications and the Arts. 

Email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

FROM THE WEB
more from the adviser
tick document ta Conversion rates increase despite credit crackdown

An increasing number of loans lodged by brokers are progressing t...

court gavel ta Identity theft ring responsible for multimillion-dollar fraud

ASIC and the AFP have begun court proceedings against suspected m...

SME broker bootcamp How brokers can help support SME clients grow

Helping SME clients secure finance is one aspect of a finance bro...