Powered by MOMENTUM MEDIA
the adviser logo
Broker

CBA, Westpac lose ground in broker space

by Charbel Kadib6 minute read
CBA and Westpac

The major banks’ share of the third-party channel has dwindled over the past quarter, according to new data from AFG.

The Australian Finance Group (AFG) has released its mortgage and competition index for the September quarter, which is based off data collected by the aggregator’s network of 3,000 brokers.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

The data has revealed that both the Commonwealth Bank of Australia (CBA) and Westpac have lost ground in the broker channel, with brokers writing fewer loans to the respective lenders.

In the three months to 30 September, CBA’s share of the broker channel slipped from 17.7 per cent to 16.7 per cent.

Advertisement
Advertisement

When including its subsidiary Bankwest, the Commonwealth Bank’s share of the channel fell from just over a quarter (25.1 per cent) in the June quarter to 23.8 per cent as at 30 September.

Meanwhile, Westpac’s broker market share declined from 7.7 per cent in the June quarter to 6.2 per cent.

When including its subsidiaries (Bank of Melbourne, BankSA and St George Bank), Westpac Group’s total share of the third-party channel slipped from 14.9 per cent to 13.1 per cent over the same period.

ANZ, NAB gain ground

Conversely, ANZ and NAB have each recorded increases in their respective shares of the broker market.

ANZ’s share of the third-party channel rose from 8.5 per cent to 9 per cent in the September quarter. This followed a contraction of 4.2 percentage points in the 12 months to 30 June 2019.

NAB, on the other hand, recorded its second quarterly increase in broker market share, with its share of AFG volumes rising from 7.3 per cent as at 30 June to 7.9 per cent in the three months to 30 September.

Macquarie closes in on CBA

According to the AFG Index, Macquarie continued to gain ground in the broker space, with its market share rising from 9.7 per cent as at 30 June to 11.4 per cent.

The bank’s broker market share has more than doubled over the 12 months to 30 September, from 4.6 per cent.

Macquarie has maintained its second place ranking in the broker space (when excluding subsidiaries), behind only CBA.

Another non-major to record strong growth over the quarter was AMP, with its share of the market rising from 2.4 per cent to 3.6 per cent.

Overall, non-major market share increased from 42.4 per cent to 45.9 per cent — the highest reported share since 2007.

Accordingly, the market share of the big banks fell from 57.6 per cent to 54.1 per cent.

Reflecting on the rise in non-major market share, AFG CEO David Bailey said borrowers are benefiting from the enhanced competition in the mortgage market.

“Consumers are continuing to express a desire to seek out competitive offers,” he said.

“First home buyers, upgraders and mortgage holders refinancing have driven the market share of the non-major banks.

“From the perspective of loan volumes, we are now approaching a 50-50 split between the majors and non-majors. Something unheard of as little as five years ago.

He concluded: “This represents a fundamental shift in the dynamic between lenders. Consumers are sending a very clear message that they want the choice and the transparency of a competitive home loan market in Australia and mortgage brokers are delivering.”

[Related: AFG volumes propelled by market tailwinds]

CBA, Westpac lose ground in broker space
cba westpac ta
TheAdviser logo
cba westpac ta

Charbel Kadib

Charbel Kadib

AUTHOR

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

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

sam jolley elders ta iwsfut

Elders welcomes 1st national growth and asset finance manager

Elders Home and Commercial Finance, the independent broking arm aligned with the real estate network of Elders Ltd,...

READ MORE
rael ross butn ta rerexr

Butn achieves record originations in July

Cash flow financier Butn has released a trading update, revealing that its 2023 financial year commenced with a new...

READ MORE
daniel tuttlebee resimac asset fInance ta l27zun

Resimac takes controlling stake in Sonder

Resimac Asset Finance has expanded its acquisition stake in equipment finance business Sonder Equipment Finance...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more