Flavell explains: NAB 'greedy' for quarter share

by Adam Smith29 Nov 2011

NAB Broker will look to snare 25% of broker originated loans in 2012.

The bank's general manager of broker distribution, John Flavell, said NAB Broker had set its sights on cornering up to a quarter of the broker market in 2012 following good growth in 2011.

"We set a goal that between one in four and one in five broker originated mortgages would be written on our paper. We've largely delivered on that," Flavell said.

Having gained around 20% market share of third-party originated mortgages, Flavell said 2012 would see NAB endeavour to lift this share to 25%. Flavell said the bank had seen good growth during 2011, claiming NAB Broker had grown at six times system.

"NAB Broker is really the growth story within the growth story," he said.

While the bank will target further growth through 2012, Flavell said it would not do so at the expense of asset quality. Flavell commented that analysts had been wary of NAB's mortgage growth, but said the bank had a low arrears rate and an impairmentt rate that was "the envy of our competitors".

"If you're just going to try to grow your book at any cost, it's fool's gold," Flavell said.

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