has reported a “disappointing” headline result for its financial year results, the growth in housing lending volumes through the broker channel has more than doubled the branch channel.
released its full year financial results for the year to September 2014. The major bank reported a 9.8% drop in its cash earnings and a 1.1% drop in statutory net profit for the year. Provisions relating to misconduct over insurance policies in the UK were a key reason for the decline.
“While our Australia and New Zealand franchises are in good shape, it is disappointing to record a full year result that includes $1.5 billion after tax in UK conduct provisions and other impairments,” NAB
Group Chief Executive Officer Andrew Thorburn said.
Despite the disappointing profit news, housing lending in the Australian market increased by $15.1 billion, or 6.5%, on the previous financial year – and brokers more than doubled the branches' growth in housing lending volume.
The broker channel grew its housing lending volumes over the year by 13.9%, while the retail channel grew its volumes by 6.4%, according to the full year results breakdown.
Housing lending continues to be part of the core business for NAB
, and Thorburn says the lender will continue to invest in its critical core business.
“While satisfied with the progress our Australian business is making, there is more we can do. It is essential we continue to invest in core businesses where we have real competitive advantage, especially housing lending and, in Business Banking our SME, agriculture, government and education, and health franchises. More broadly, we have a number of solid businesses from which to build a stronger bank,” he said.