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Major bank suffers blow in broker space

by Charbel Kadib4 minute read
Decline

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.

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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.

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]

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Charbel Kadib

Charbel Kadib

AUTHOR

Charbel Kadib is the news editor on The Adviser and Mortgage Business.

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