ISCOVER
The major bank continues to have the highest proportion of broker-originated mortgages, while other majors are seeing broker-originated loans dropping.
In its latest quarterly trading update, released on Thursday (14 August), Westpac Banking Corporation (Westpac) revealed it had recorded gross loan growth of $16 billion between the March and June quarters 2025.
This included a 1 per cent rise in Australian housing loan growth (excluding RAMS, which is currently shuttered amid ongoing regulatory action), 5 per cent business loan growth, and 2 per cent institutional loan growth.
The June quarter trading update shows that the bank continues to grow its books thanks to the broker channel, with 64 per cent of the lending group’s Australian home loans having come through the broker channel.
This is the largest broker-originated portfolio of the big four banks. Sixty per cent of ANZ’s Australian home loan portfolio has been written by brokers (as at March 2025), 52.9 per cent of NAB’s Australian home lending book has been originated by brokers (as at March 2025), while CBA’s full-year results for FY25, released this week, revealed that just 46 per cent of the group’s portfolio has been originated by the broker channel, as it continues to focus on proprietary lending.
As such, Westpac’s proprietary channel is responsible for having originated less than half (46 per cent) of the entire Australian mortgage portfolio (as at June 2025), down from 48.7 per cent in June 2024.
According to the trading update, Westpac’s total Australian mortgage portfolio now sits at 515 billion - up from 504.2 billion in June 2024. It is the second-largest mortgage book of the big four banks, behind the CBA.
Delinquencies improved, with 90+ day arrears falling 3 basis points to 0.59 per cent, and 30-day delinquencies down to 1.37 per cent.
A growing proportion of customers are also ahead on repayments, with 25 per cent more than two years ahead of schedule (up from 23 per cent last year).
Offset balances remain high at $67 billion.
The bank’s net interest margin increased to 1.99 per cent, with core net interest margin on loans up 1 basis point. This was supported by higher spreads on mortgage lending in New Zealand, while Australian mortgage margins remained stable.
A mix shift towards higher-margin business lending was offset by narrower spreads from competition.
Commenting on the figures, Westpac CEO Anthony Miller said: “This quarter we delivered a sound financial result while executing on our strategy and priorities.
“We grew strongly in business and institutional banking, while focusing on returns in consumer and improving customer experience.”
Miller noted the bank’s expansion in physical presence, having opened new branches in the Gold Coast and Darwin, co-located sites, and invested further in frontline operations.
“The resilience of both households and businesses has been aided by the reduction in interest rates and the moderation of inflation,” he said.
“This is reflected in lower levels of customer stress. It should also underpin a recovery in private sector activity and support lending growth.”
He added: “Our strong financial foundations provide us with the stability and capacity to support our people, customers, shareholders, and the broader economy.”
The CEO added that Westpac remained committed to supporting productivity improvements in Australia, outlining three key policy priorities ahead of the government’s upcoming Economic Reform Roundtable: increasing housing supply, investing in the regions, and accelerating the energy transition.
The changing image of Westpac
The increase in home lending performance comes as the major bank welcomes a new retail banking head.
Earlier this week, the banking group confirmed that Carolyn McCann, the bank’s former group executive, customer and corporate services and acting consumer CEO, will take on the role in a permanent position, effective immediately.will become its new banking CEO.
McCann, who has been with the bank since 2013, has played a pivotal role behind the scenes in transforming Westpac’s mortgage processing times – a factor many brokers have cited as helping the bank win greater market share in recent years.
Indeed, according to the latest Broker Pulse Third-Party Lending Report, Westpac has been steadily increasing in popularity among brokers, thanks to faster turnaround times, competitive pricing, and service improvements.
The changes saw Westpac ranked as the best-performing major bank for third-party origination and put it in the top 10 lenders for brokers for the first time in nearly a decade.
[Related: What do brokers think of the major banks?]
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