Commonwealth Bank may be Australia’s largest home loan lender, but it isn’t the broker market’s major bank of choice.
According to the major bank’s full year results released yesterday, CBA
recorded home loan lending growth of 6.6% in the year to June 2015, however this was comfortably behind system growth of 7.4%.
In its results presentation to media, the major bank cited “underweight” performance in higher growth segments, such as “broker and investment lending”.
Broker-originated loans accounted for 45% of new business during the year, with brokers now making up 43% of the major bank’s entire home loan portfolio. But despite the broker market share of new home loans increasing by 2% in the year to June 2015, CBA’s broker growth profile is much lower compared to the three other major banks.
According to CBA estimates, the broker growth profile of its retail banking home loan portfolio is 7.7%, compared to 10.8% for the remaining major banks.
However, the results also revealed that CBA was still able to increase profits, recording a statutory net profit after tax of $9,063 million in the year to June 2015, up 5% from the previous financial year. Cash net profit after tax $9,137, also up 5% from last year.