Brokers steal market share at major bank

by Julia Corderoy11 Feb 2016
Commonwealth Bank of Australia (CBA) grew its total home loan book by 3% in the six months to December 2015, as the third party channel stole market share from its proprietary channel. 

CBA settled a total $44 billion worth of new home loans in the second half of 2015, according to its first half year results, increasing its total mortgage book to $331 billion. 

While the major bank’s market share on its entire loan book sits at a 60/40 split favouring the proprietary channel, in the six months to December the third party channel made significant gain. 

Brokers accounted for 45% of the $44 billion in new home loans settled over the second half of 2015, growing their market share over the six month period by 4%. Meanwhile, CBA’s proprietary channel’s market share dropped 4% to 55%. 

Despite the growth in CBA’s mortgage book however, the major bank’s market share of the total Australian mortgage market dipped slightly, from 25.3% in June to 25.1% in December. The major bank also recorded below system growth. 

According to its first half year results, CBA recorded home loan growth of 6.5%, over 1% under system growth of 7.7%.