Macquarie loan book grew 13% in 6 months

The 1H23 results represented a 13 per cent rise on the previous half and a 32 per cent increase on the prior comparative period.

Macquarie’s mortgage book now represents around 5 per cent of the Australian market.

According to the bank, the most recent increase has been driven by “strong demand in lower loan-to-value ratio (LVR) and owner-occupier lending tiers”.

The average LVR at origination was 65 per cent in the period ended September 2022, the bank outlined, with the same proportion of its mortgage book being for owner-occupiers.

Around two-thirds of its loans are for principal and interest loans, with 22 per cent being fixed. 

The banking group has reported strong home loan growth in the past few years, with its book rapidly climbing from $52 billion at the start of the pandemic (March 2020) to $101 billion as at 30 September 2022.

The lender has seen its popularity grow (particularly in the third-party channel) due to its fast and consistent turnaround times. The most recent Broker Pulse survey showed that Macquarie Bank’s BDMs and credit assessors achieved the highest positive rating of all lenders last month — at 92 per cent and 91 per cent, respectively.

However, while Macquarie reported strong mortgage growth in its retail banking business, its car loan portfolio was down 13 per cent on March 22 to $4.8 billion.

Macquarie attributed this to “ongoing market supply issues”, but it did note that it had seen continued growth in electric vehicle settlement volumes through the direct business.

Similarly, its business banking arm saw its car loan portfolio drop (down 24 per cent to $2.5 billion), which was largely put down to “run off” following the sale of its dealer finance business in December 2021. Its loan portfolio at the business bank rose 7 per cent on March figures to $12.3 billion.

The growth in the lending arms of the retail bank as well as growth in deposits and lower credit impairment charges helped contribute to the bank’s net profit contribution of $580 million — up 20 per cent on 1H22.

However, Macquarie said this was partially offset by increased technology investment and higher average headcount to “support business growth and regulatory requirements”.

Overall, the group reported a net profit of $2.3 trillion for 1H23, up 13 per cent on 1H22 and down 13 per cent on 2H22.

Macquarie group managing director and chief executive, Shemara Wikramanayake, said: “Macquarie’s businesses continued to perform well against a backdrop of more challenging market conditions, reflecting the diversity of our activities and ongoing focus on prudent risk management.

“We continue to adapt to meet our clients’ needs.”

[Related: Revealed: What brokers really think of BDMs]