Australia’s biggest bank, Commonwealth Bank, has increased its mortgage market share over the past financial year, with mortgage brokers accounting for just shy of half of new mortgage flows.
According to CBA
’s full year results, the major bank grew its Australian home loan portfolio by 6.8% in FY2016, to $409 billion. Over the financial year, the bank settled $101 billion worth of new home loans, bringing its mortgage market share to 25.3%, up from 25.2% market share at the end of the previous financial year.
The results also showed brokers were responsible for 49% of new home lending over the year, increasing their share of CBA’s new business by 4% from FY2016. The proprietary channel, on the other hand, decreased their share of CBA’s new home lending by 4% over the financial year, accounting for 51% of new business.
This has brought broker market share of CBA’s total Australian mortgage portfolio to 45%, up from 43% at the end of June 2015.
The major bank reported a statutory net profit after tax of $9.2 billion for FY2016, up 2% from last year. It reported a fully franked final dividend of $2.22 per share, taking the full year dividend to $4.20, which is flat on the prior year.