Macquarie acquires billion dollar mortgage book

by Julia Corderoy12 Feb 2016
Macquarie Group has announced the acquisition of a $1 billion dollar mortgage book as it delivers on its commitment to grow that sector of the business.   

The acquisition of the remainder of ING Direct’s unbranded mortgage portfolio marks the fourth acquisition from the global Dutch lender, according to a report in The Australian, and brings Macquarie’s own mortgage exposure above its pre-GFC peak of $25 billion.

According to APRA’s latest banking statistics, Macquarie Bank holds 2% of the $1.4 trillion Australian mortgage market, making it the ninth biggest mortgage provider. It is still scores behind the major banks who hold between 16% and 27% market share – Commonwealth Bank holding the largest market share of 27%. 

However, according to The Australian, the string of acquisitions from ING means Macquarie chief Nicholas Moore’s target to restore its mortgage market power has been far exceeded, prompting questions about where the bank’s aspirations in the market now lie.

But few expect Macquarie will become a major mortgage player competing in the same territory as the four major banks. 

Macquarie made its first ING acquisition in 2013, snapping up a $1.5 billion book of non-branded mortgages. It followed that in 2014 with the acquisition of a $1.6 billion portfolio and then renewed its advances last year with another $1.5 billion deal. This latest acquisition takes the total to $5.6 billion.

Whether Macquarie continues to seek out merger deals to further expand its mortgage book remains up in the air, according to The Australian.