NAB grows share of mortgage market

By Andrea Cornish | 14/07/2010 5:30:00 AM | 0 comments

NAB has succeeded in attracting a larger share of the mortgage market, according to new figures which reveal lending in the last four months has grown at the fastest pace in five years.

NAB’s mortgage book is worth $144.39bn. Australian Prudential Regulation Authority figures analysed by The Australian show that during May NAB increased its mortgage market share by six basis points at the expense of rivals CBA and Westpac, which lost four and two basis points respectively.

Overall, NAB’s volume of mortgages increased by 1.3% in May and 3.5% over the quarter.

Late last year, three of the big four banks were quick to move outside Reserve Bank increases to the official cash rate. Westpac raised rates 45 bps over the RBA’s December hike, while NAB announced it would raise rates in step with the Central Bank.

At the time, NAB group executive of personal banking Lisa Gray urged Westpac customers to consider NAB. "Today we are sending a message to customers at Westpac, and the other banks, that NAB can offer them a better deal," she said.

Gray has since credited NAB’s low-rate strategy as being key to the bank’s current success.

The bank has kept its standard variable rate loan – now 7.24% - below its competitors.

Related stories:

Biggest lenders jockey for growth

 

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