Brokers behind 90% of non-major loan book growth

by Julia Corderoy23 Feb 2016
Non-major lender MyState has reported a 6.6% rise in its home loan book in the first-half of FY2016, with brokers accounting for the vast majority of growth.

MyState’s home loan book reached $3.8 billion in December 2015 after settlements rose 32% from the previous corresponding period. The overall growth in its loan book represents growth of two times the Australian home loan system. 

MyState managing director and CEO, Melos Sulicich, told Australian Broker that the third party channel was almost exclusively responsible for the strong growth momentum in its loan book.

“The broker channel represents just above 50% of our book and about 90% of our loan book growth is coming through the broker channel,” Sulicich said.

“Our branch network is relatively mature and we’ve been able to grow our loan book by engaging with brokers mainly in Victoria and New South Wales over the last 12 months.”

Last year, MyState implemented its new loan origination system, which Sulicich says has made it easier than ever for brokers to work with the non-major.

“Particularly with the MyState brand it will enable brokers to lodge electronically and a lot more easily than they have been able to in the past. 

“We have had more of a manual system of application so we are happy with the way that it has been installed now and we think that as we get our processes more refined and more attuned that we will become even easier for brokers to lodge applications with us.

“We have had good feedback from brokers on what we have done so far. Certainly from where we came from it is a huge improvement... All indications are we are a lot easier to do business with now than we ever were in the past.”

Looking ahead, Sulicich says he expects to see continued growth momentum from the third party channel.

“Our view is continued above system loan growth with most of our loan growth coming from the broker channel.”

MyState reported statutory net profit after tax of $15.1 million for the six months ending 31 December 2015, up 1.5% compared to the previous corresponding period. Earnings per share increased 1.8% to 17.3 cents.