BNK reports multichannel mortgage growth

BNK Banking Corporation has released its financial results for the third quarter ending 31 March 2019 (3Q19), reporting a total loan book of $38.4 billion, up 20 per cent when compared to the previous corresponding period.

The group’s banking division posted on-balance sheet settlement growth of $18.7 million via its retail bank (Goldfields Money) and $123.2 million via its wholesale lending division (partly distributed via Better Choice Home Loans), up 8 per cent and 30 per cent, respectively, over the same period.

BNK’s on-balance sheet retail lending book totalled $190 million as at 31 March 2019, while its wholesale lending portfolio increased to $2.3 billion.

The group also reported strong settlement growth via its aggregation business, operating as Finsure.  

The aggregation business reported loan settlement growth of $9 billion for the nine months ending 31 March 2019, up 7 per cent on the previous corresponding period – lifting its aggregation portfolio to $36 billion, up 21 per cent.

The group also revealed that the size of Finsure’s broker network also increased to 1,630 loan writers, up 17 per cent on the previous corresponding period.

BNK’s managing director, Simon Lyons, said he was pleased with the group’s overall performance amid softening market conditions.

“Against a backdrop of a much softer housing market, our businesses have performed well as we continue to win market share,” Mr Lyons said.

“Our total loan book, on-balance sheet book and our number of loan writers ended the quarter at record levels and growing well.

“This demonstrates our strong value proposition in the lending market and to brokers.”

Mr Lyons said the group is well placed to “continue building market share”, adding that it would focus on the conversion and settlement of its mortgage application pipeline in the coming quarter, as well as improving its capital efficiency in order to “diversify its funding sources”, including its off-balance sheet facilities.

The group also plans to roll out its direct-to-customer BNK Bank brand (phasing out its Goldfields retail brand) in the second half of 2019, with the aim of bolstering retail lending volumes via a digital platform.  

“We [further] strengthened our core digital banking platform and implemented various improvements to our proprietary mortgage lending software, which will support growth in our banking and aggregation operations,” Mr Lyons said.

The group recently rebranded to BNK Banking Corporation as part of its merger with Finsure Group, which took effect in September 2018.

 [Related: Bank rebrand greenlighted ahead of new market launch]