Brokers drive home loan growth for non-major

by Julia Corderoy09 Oct 2015
Mortgage brokers are behind non-major lender Bank of Queensland returning to home loan system growth, with brokers driving its national diversification strategy. 

Bank of Queensland’s housing portfolio increased 7% over the year to August, according to the bank’s financial results released yesterday, representing growth of 0.9 times system growth. The non-major’s total home loan portfolio is now $28.7 billion. 

For the first time in Bank of Queensland’s history, the proportion of total lending in Queensland also dipped below 50%, as the lender focused on expanding its national footprint by decreasing its branches and increasing its sales through brokers. Total funds under management in Queensland fell to 49%, while market share in New South reached 21%, followed by Victoria (16%) and Western Australia (10%).  

Bank of Queensland chief executive Jon Sutton said brokers were a driving force in helping the non-major diversify its asset base nationwide and boost its housing portfolio growth. The mortgage broker channel accounted for 15% of Bank of Queensland’s housing settlements, up from 5% in 2014. 

According to AFG’s latest competition index, Bank of Queensland’s market share of AFG mortgages has more than doubled since the beginning of 2015. In August, 3.6% of AFG loans were settled through Bank of Queensland, up from just 1.4% in February. 

Sutton said the bank was also pleased to achieve the majority of its housing growth in the owner-occupied space. Growth in this segment of the market was 12% over the year, compared to 5% growth in the investor market. 

Commercial lending also increased over the year, according to the results, growing by 8% to $8.3 billion.

Bank of Queensland's statutory profit after tax was up 22% on 2014, to $318 million.


  • by SEQ Broker 9/10/2015 10:38:10 AM

    I wasnt around when they pulled their offerings from brokers last time. I wonder if they maintained trails to brokers after leaving the market? Perhaps some old timer can set us straight. But for me, if there is a risk to my income in the future, why would I. There is sufficient competition out there who havent pulled themselves from the market before who could be supported first.

  • by Dave Robinson 9/10/2015 1:30:04 PM

    Yes trails are still paid and on time.

  • by Broker 9/10/2015 5:44:28 PM

    Exited last time and treated brokers with utter contempt on the way out – it would want to be a very compelling offer for the client AND myself for me to consider BOQ...