Bank plans to maintain "prudent and disciplined" approach to pricing
Macquarie Bank has reported a significant increase in its home loan market share, attributing the growth to its emphasis on enhancing the customer and broker experience.
The bank’s consumer home loan portfolio grew to $118 billion or 5.3% of the Australian market, with the growth largely attributed to its broker channel, which accounted for 94% of the flow, compared to 6% from direct flows.
The expansion in home loans was particularly noted in segments with lower loan-to-value ratios and among owner-occupiers, indicating strong demand in these areas.
One of the country’s largest banks, Macquarie has also focused on improving digital experiences for its customers, both at the point of loan origination and throughout the loan’s life. This includes offering market-leading approval times and digital self-service options.
The lender has also maintained “a prudent and disciplined approach to pricing” by not offering cashbacks.
At our 2024 Operational Briefing today, we shared an update on the evolution of our Australian Banking and Financial Services business. Learn more: https://t.co/moGqrxH2Aj pic.twitter.com/uAggEZ2aTW
— Macquarie Group (@Macquarie) February 13, 2024
Ben Perham (pictured), head of Macquarie’s personal banking division, further discussed the bank’s success in the mortgage market over the past several years.
“We have grown by taking market share,” Perham was quoted as saying in a Financial Review report. “In 2013, we had 0.5% of market share, and that’s now sitting at 5.3% as at December.
“We’ve had the best in market approval times for many years now, and that was a key factor in winning the confidence of the broker channel in the early years of our success.”
However, Perham said that despite the bank's growth and ambition, Macquarie would remain disciplined on its home loan pricing.
“It is a very competitive market, and there will be periods of time when we think returns are below the level that shareholders expect,” he said. “And so, you should expect to see our market share and our growth fluctuate over time.”
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