Brokers steal market share at major bank

by Julia Corderoy11 Feb 2016
Commonwealth Bank of Australia (CBA) grew its total home loan book by 3% in the six months to December 2015, as the third party channel stole market share from its proprietary channel. 

CBA settled a total $44 billion worth of new home loans in the second half of 2015, according to its first half year results, increasing its total mortgage book to $331 billion. 

While the major bank’s market share on its entire loan book sits at a 60/40 split favouring the proprietary channel, in the six months to December the third party channel made significant gain. 

Brokers accounted for 45% of the $44 billion in new home loans settled over the second half of 2015, growing their market share over the six month period by 4%. Meanwhile, CBA’s proprietary channel’s market share dropped 4% to 55%. 

Despite the growth in CBA’s mortgage book however, the major bank’s market share of the total Australian mortgage market dipped slightly, from 25.3% in June to 25.1% in December. The major bank also recorded below system growth. 

According to its first half year results, CBA recorded home loan growth of 6.5%, over 1% under system growth of 7.7%. 


  • by John 11/02/2016 9:04:17 AM

    The figures CBA have given, I would be very surprised if they were correct? They would never say the broker channel writes more than branch land.

  • by observer 11/02/2016 9:13:10 AM

    CBA credibility is a bit on the nose at the moment with the various lending/advice sagas they have. I am not surprised people are avoiding direct contact. Brokers however when explaining the various options can still sell CBA loans and client knows it is actually the best loan for them.

  • by Ex-cba 11/02/2016 12:16:20 PM

    CBA have less and less resources through their direct channels. As a previous branch lender with them, I had 5 branches to look after. Their video conference alternative is 'on the nose' with most clients. Now as a broker, one of my best sources of business is disgruntled CBA clients looking for alternatives. It is clear to me that their big picture strategy with ownership of Aussie and shareholdings in Mortgage Choice that they wouldn't be too concerned with these stats. Doesn't mean the say the staff won't be under any less pressure to sell at the coal front. I wouldn't be surprised to see this trend continue indefinitely.