Powered by MOMENTUM MEDIA
subscribe to our newsletter

NAB branches most efficient at selling mortgages: Morgan Stanley

NAB branches have the “best mortgage sales productivity”, despite the bank having the “least valuable” branch distribution among the big four, Mortgage Stanley Research has revealed.

According to Morgan Stanley Research’s Roadmap to Branchtopia report, NAB had the strongest mortgage sales efficiency in the 2017 financial year (FY17), with $74 million in home loans settled per branch.

Morgan Stanley has said that NAB’s business bank and non-broker referrals helped drive the efficiency.  

“We think the business bank and non-broker referrals assisted with this,” the group said.

“But even if we assume [approximately] 30 per cent of sales were from the business bank and remove this from branch sales, NAB’s adjusted $52 million of mortgage sales per branch is ahead of peers, who also had some assistance from their business banks.”

Advertisement
Advertisement

Conversely, the research found that mortgage sales through ANZ’s branch network were the least efficient of the big four banks, with $35 million in home loans settled per branch in FY17.

According to Morgan Stanley, ANZ “relied more on mortgage brokers”, with broker-originated loans making up 51 per cent of its home loan flows in 2H17, compared to 34 per cent of NAB’s home loan flows over the same period.

Further, the research found that Commonwealth Bank drove the most internal mortgage flows in FY17, delivering $57 billion in home loans, ahead of NAB ($53 billion), Westpac ($43 billion) and ANZ ($23 billion).

Broker share of major bank flows rising

Moreover, Morgan Stanley’s research revealed that the share of broker-originated home loans processed by the major banks has increased, now representing 47 per cent of home loan flows.

PROMOTED CONTENT


The group attributed the rise to increasing complexities in the mortgage market, citing research from Australian Finance Group (AFG).

“We think this growth has been in response to rising mortgage product complexity and consumer preferences. For example, AFG reported that the number of its mortgage products rose  [by approximately] 135 per cent from 1,450 in 2015 to over 3,400 in 2017,” the report noted.

“Differentiated pricing and tighter lending standards are additional drivers.”

However, according to Morgan Stanley, CBA is the only big four bank that has reduced its broker flows, noting that its broker-originated home loans dropped from 45 per cent in FY17 to 40 per cent in FY18.  

[Related: Major bank haemorrhages $374m in remediation costs]

NAB branches most efficient at selling mortgages: Morgan Stanley
NAB branch
mortgagebusiness

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The chairman of the financial services regulator has resigned from his position, effective immediately. ...

Refinancing settlements for the first nine months of the calendar year 2020 are up 27 per cent on last year’s volumes, having peaked in Ju...

The Tasmanian-based lender has seen a 43 per cent rise in settlements in the first quarter of the financial year, driven by strong demand fr...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Victoria’s surprising appetite for new homes

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.