Bank Australia’s loan book surges as brokers dominate flows

The bank reported significant growth in home loans, which rose 17.7 per cent to $17.6 billion, compared with $9.9 billion in FY2024–25.

Broker-generated home lending increased from $1.4 billion in FY24–25, while the bank’s active broker network expanded from 3,316 to 13,121.

Bank Australia attributed that network growth to its combined footprint with Qudos and new aggregator partnerships spanning PLAN, FAST, Choice, Mortgage Choice, Smartline Home Loans, and Finsure.

It also said that refinancing demand and lending under the Australian government’s Help to Buy and 5 per cent deposit schemes supported the increase.

“Growth was also supported by the relationship-building efforts of our broker relationship managers and partnerships team,” Bank Australia said.

Managing director Damien Walsh highlighted the bank’s early involvement in the government’s shared-equity housing initiative as a major source of growth.

“We were one of two lenders to initially join the Australian government Help to Buy Scheme, which helps first home buyers and low- and middle-income earners access affordable homes,” he said.

An enlarged banking business

The $9 billion increase in assets followed transactions that added established customer relationships and existing lending portfolios, alongside business generated during the year.

Customers reached 338,715, up 73 per cent from 196,160. More than 100,000 joined through Qudos, another 31,000 through Australian Unity, while 22,000 joined Bank Australia Limited directly.

Australian Unity’s banking acquisition included existing loans, credit cards and deposit accounts, with the bank reporting acquiring $1.5 billion in loans.

Business loans and advances edged up to $477 million from $471 million, while personal loans stood at $33 million.

Walsh described the Qudos combination as a defining development for the bank’s scale and position within customer-owned banking.

“It’s been a significant year of transition and achievement following our merger with Qudos Bank. Coming together as Bank Australia Limited makes us one of the largest customer-owned banks in the country,” Walsh said.

“Through our merger and acquisition activity during the past year, we had significant growth in our deposit and lending portfolios, while integration costs incurred were lower than forecast due to several integration activities moving into next year and beyond.”

Further merger, integration ahead

Bank Australia is pursuing another combination with P&N Group, which operates P&N Bank in Western Australia and BCU Bank in northern NSW and South-East Queensland.

The banks outlined their ambition for the proposed entity as a “truly national customer-owned bank with a strong and differentiated purpose under the Bank Australia brand”.

The proposal envisages assets exceeding $30 billion, approximately 530,000 customers and around 1,500 employees, extending the combined business across both coasts.

Following the May announcement, initial due diligence was completed by August, with the banks seeking regulatory approval before asking members to vote in 2027.

The banks have agreed that no branches would close as a direct result of the transaction and that all non-executive employees would be offered roles within the merged organisation.

Bank Australia’s priorities also include integrating its core banking systems with Qudos and supporting customers through that transition.

Walsh cautioned that faster integration would affect the coming year’s profit, alongside continued spending on customer-facing improvements.

“Looking ahead to next year, we expect our profit to moderate as we accelerate our integration activity in FY27. We look forward to delivering greater value and continuing to increase our investment in technology and service improvements for our customers,” he said.

[Related: Bank Australia, P&N Group advance proposed merger to next stage]