Broker mortgage share rising at CBA despite proprietary push

That compares with a proprietary share of 64 per cent across the six months to June 2026 and 67 per cent in the preceding December half, when brokers accounted for 36 per cent and 33 per cent, respectively.

The shift comes despite the bank’s multi-year effort to favour its direct channel, which it claims generates materially higher returns than broker-written loans.

CBA has previously put that profitability advantage at 20–30 per cent, accounting for upfront and trail commissions and differences in operating expenses.

Its preference reflects a broader push among the major banks to expand direct distribution.

Westpac, National Australia Bank (NAB) and Australia and New Zealand Banking Group (ANZ) have also prioritised proprietary lending, with NAB reporting that its own channels generated half its FY25–26 home loan drawdowns, up from 41 per cent a year earlier.

Mortgage growth slows as applications retreat

CBA’s mortgage balances increased by $39.8 billion over the year to September, representing growth of 6.6 per cent.

Its approximately 1.1-times-system result means growth was around 10 per cent faster than the market rate.

Nevertheless, applications, including Bankwest, were 16 per cent below the corresponding quarter a year earlier, highlighting weaker incoming demand.

It comes as the major banks grapple with shrinking demand for home loans, with Equifax reporting that mortgage demand dropped 19.2 per cent annually in September, the sixth consecutive month of declining demand.

Applications from first home buyers fell 22.1 per cent, while demand for refinancing with another lender declined 8.8 per cent.

CBA’s slower growth comes after ANZ, Westpac and NAB similarly reported sluggish home loan growth.

Business lending provided stronger momentum, increasing $24.6 billion, or 13.6 per cent, over the year, with the bank attributing that growth to ongoing investment demand and deeper customer relationships.

The bank reported approximately $2.8 billion in unaudited quarterly cash net profit, up 8 per cent year on year but unchanged against the second-half FY25–26 quarterly average.

Repayment pressures rise, but Comyn points to resilience

Mortgages more than 90 days overdue increased 7 basis points during the quarter to 0.80 per cent, with CBA linking the deterioration to inflation and higher interest rate.

Collective provisions increased by $105 million, distinct from the quarter’s $300 million loan impairment expense, while total provisions remained at approximately $6.5 billion as lower individual provisions for corporate exposures offset the collective increase.

Chief executive Matt Comyn reiterated CBA’s commitment to supporting customers managing higher living costs and acknowledged that financial pressures were affecting households and businesses differently.

“Higher inflation and interest rates continue to place uneven pressure on household incomes and business activity,” he said.

“While economic growth is slowing, the Australian economy remains resilient, supported by low unemployment and a strong public infrastructure and private investment pipeline.”

[Related: Macquarie’s mortgage book nears $200bn as brokers dominate originations]