Approximately 60% of all loan originations at Queensland-based Auswide Bank come from brokers and mortgage alliances, according to a report covering 2016 financial highlights unveiled at the bank’s annual general meeting on Wednesday (16 November).
During FY16, Auswide’s loan book increased by 14.4% to $2.666 billion while home loan approvals grew by 31.7% to $592 million.
While South East Queensland was the bank’s strongest local market, it also made inroads elsewhere, with significant growth in New South Wales and Victoria.
At the AGM, Auswide chairman John Humphrey said the bank’s organic growth was one of the most pleasing aspects of the company’s performance.
“We have been able to achieve this because of the improvements that have been made to our organisational capabilities in retail and business banking, third party broker relationships and omni-channel lending.”
Mortgage arrears also continue to be well-managed, consisting of 0.99% of the total loan book. This was a slight increase from 0.96% in 2015.
Continuing challenges for the bank include the ongoing reduction of interest rates, as well as property market instability in regional Queensland and certain other sectors of the housing market.
In the first quarter of FY17, Auswide hopes to further grow the volume and diversity of its loan book, on-boarding customers through third party channels.
Furthermore, the recent introduction of the tracker loan – an Australian first – was brought about of its own accord rather than as a result of enforced regulation, and placed the bank as a “good corporate citizen”, the report read.
“We have a good working relationship with APRA and many shareholders will have seen that the proposed introduction of a ‘tracker’ loan not only resulted in a good deal of publicity it also drew public praise from the chairman of ASIC – a rare endorsement indeed,” Humphrey said.
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