An entry into the broker market has helped drive strong results for a non-major lender.
Teachers Mutual Bank has reported strong growth in its home loan portfolio. The mutual saw its loan book grow by 11.44%, outperforming the average for Australian banks by 51%.
The lender recently entered the broker channel, and CEO Steve James attributed some of the result to broker-generated loans.
“Our entry to the broker home loan channel has gone exceptionally well, and contributed in part to our very sound performance in home loans. With fifty per cent of Australian home loans facilitated by brokers, we can now serve more members and potential members for their mortgage needs,” James said.
The lender saw a slight decline in profits, down 8.16% to $25.8m, but attributed the decline to the abolition of some fees, a drop in interest rates and capital investment in IT systems and product development.
“The mutual bank continues to invest in new and innovative products, and this year introduced a highly competitive mortgage offset facility, with the rare feature of being available across all home loan products,” James said.