Mortgage brokers are behind non-major lender Bank of Queensland returning to home loan system growth, with brokers driving its national diversification strategy.
Bank of Queensland’s housing portfolio increased 7% over the year to August, according to the bank’s financial results released yesterday, representing growth of 0.9 times system growth. The non-major’s total home loan portfolio is now $28.7 billion.
For the first time in Bank of Queensland’s history, the proportion of total lending in Queensland also dipped below 50%, as the lender focused on expanding its national footprint by decreasing its branches and increasing its sales through brokers. Total funds under management in Queensland fell to 49%, while market share in New South reached 21%, followed by Victoria (16%) and Western Australia (10%).
Bank of Queensland chief executive Jon Sutton said brokers were a driving force in helping the non-major diversify its asset base nationwide and boost its housing portfolio growth. The mortgage broker channel accounted for 15% of Bank of Queensland’s housing settlements, up from 5% in 2014.
According to AFG’s latest competition index, Bank of Queensland’s market share of AFG mortgages has more than doubled since the beginning of 2015. In August, 3.6% of AFG loans were settled through Bank of Queensland, up from just 1.4% in February.
Sutton said the bank was also pleased to achieve the majority of its housing growth in the owner-occupied space. Growth in this segment of the market was 12% over the year, compared to 5% growth in the investor market.
Commercial lending also increased over the year, according to the results, growing by 8% to $8.3 billion.
Bank of Queensland's statutory profit after tax was up 22% on 2014, to $318 million.