Non-major reports strong growth in broker settlements

by Maya Breen23 Feb 2015
A non-major lender has reported the highest quarterly growth in their history.

MyState has seen outstanding growth from both MyState Bank's and The Rock's mortgage broker channels with $155 million added to their total loan book for the half year to end December 2014.
The loan book grew by 5.1% to $3.2 billion and more than 1.6 times system, with $115 million achieved in the second quarter, the highest quarter's growth in the group's history.
MyState’s Managing Director and Chief Executive Officer Melos Sulicich said, "We are pleased to report a solid financial result for the first half which reflects strong improvement in our broker lending operations.”
MyState Bank and The Rock group’s arrears were less than half the average trend for regional banks, which the group says was aided by tight cost management, technology savings and securitisation efficiencies, resulting in a reduced cost to income ratio of 64.5%.
"In December 2014, our home loan settlements through the broker channel exceeded retail settlements for the first time, and our broker portfolio is growing currently at more than 20% annually," said Mr Sulicich.
MyState's new loan origination system is set to strengthen services and processing efficiency for mortgage brokers and expected to launch in the second half of FY2015.
The group's residential mortgage lending book grew approximately 12% in annualised growth terms, a substantial achievement which exceeded the loan growth of regional and major banks.
"We are very pleased with the support we are receiving from mortgage brokers; it is clear that their clients are finding our proposition compelling,” said Mr Sulicich.
“The transition of our Tasmanian banking brand to MyState Bank helped to clarify our position and provide greater comfort, enabling us to promote our products and services more effectively.”