HSBC leads non-majors’ charge in mortgage space

An analysis of the Australian Prudential Regulation Authority’s (APRA) latest monthly banking statistics has revealed that over the three months to 30 June 2019, HSBC Bank Australia’s mortgage portfolio grew $1.7 billion, from $17.3 billion to $19 billion.

HSBC outpaced its competitors in the non-major banking space and reported stronger portfolio growth than two of the big four banks, with ANZ and NAB recording contractions of $3.2 billion and $300 million, respectively.

Most of HSBC’s portfolio growth came via the owner-occupied segment, which grew $1.4 billion over the June quarter to $13.2 billion, while its investment portfolio grew approximately $300 million to $5.8 billion.

Macquarie Bank was the only other non-major to record portfolio growth that surpassed the billion-dollar mark, with its book increasing by $1.2 billion to $36.8 billion.

Macquarie’s portfolio growth was also predominantly driven by a surge in its owner-occupied book, which increased by around $900 million to $24.2 billion, while its investment portfolio grew approximately $300 million to $12.6 billion.

In total, of the 10 non-majors with the largest mortgage books, six reported increases over the June quarter.

In addition to HSBC and Macquarie, Suncorp and Citigroup each recorded portfolio increases of approximately $300 million, while BOQ and Heritage each recorded increases of approximately $200 million.

In contrast, among the non-majors, ME Bank recorded the sharpest contraction in its portfolio over the June quarter ($1.1 billion), followed by AMP Bank (approximately $500 million), Bendigo and Adelaide Bank (approximately $300 million) and ING (approximately $200 million).

However, as at 30 June, ING boasted the largest mortgage portfolio of the non-major banks ($49.1 billion), followed by Suncorp ($42.7 billion), Bendigo and Adelaide Bank ($37.6 billion), Macquarie ($36.8 billion), BOQ ($27.9 billion), ME ($20.1 billion), HSBC ($19 billion), AMP ($13 billion), Citigroup ($7.2 billion) and Heritage ($6.9 billion).

According to the Australian Finance Group’s mortgage and competition index for the June quarter – which is based off data collected by the aggregator’s network of 3,000 brokers – the collective market share of non-majors grew from 41.4 per cent to 42.3 per cent in the June quarter of 2019, and from 40.3 per cent in the same quarter in 2018.

[Related: CBA receives multibillion-dollar post-election mortgage boost]