Non-major increases use of third party channel

by Julia Corderoy05 Aug 2016
Non-major lender Suncorp Bank has reported home lending growth of 5.9% in FY2016, with mortgage brokers now responsible for almost two thirds of home loan flows.

According to Suncorp’s full financial year results released yesterday, the non-major has grown its home loan portfolio to $44.3 billion, with the third party channel now accounting for 65% of its book. Mortgage broker market share has grown 2% in the last six months.

A breakdown of Suncorp’s home loan book reveals 70% of its $44 billion in mortgage assets is owner occupied and half is concentrated in Queensland. 

Total lending growth grew 4.5% with 81% of its $54.3 billion portfolio attributed to housing. Ten percent was attributed to commercial lending to SMEs.

The bank’s group net profit after tax dropped, however, falling 8.4% to $1.04 billion. The fall in profits relates to the group’s general insurance arm, which saw its profits dive to $654 million from $756 million in 2015.

Heavy storms along the east coast in June triggered claims of $118 million, while the tornado that hit Kurnell in Sydney in December cost the company another $57 million.

Other significant claims flooded in from another bout of east coast storms in January ($74 million) and Victoria's Great Ocean Road bushfire in December ($34 million).