Powered by MOMENTUM MEDIA
subscribe to our newsletter

Macquarie reports 21% mortgage book growth

The non-major bank has continued to gain ground in the mortgage market, reporting strong owner-occupied-driven portfolio growth.

Macquarie Group has released its half-year results for the 2020 financial year (1H20), reporting a group net profit after tax of $1.4 billion, up 11 per cent on 1H19.

The group’s net operating income rose by 8 per cent to $6.3 billion, offset by a 9 per cent increase in its net operating expenses, which rose to $4.4 billion.

Macquarie’s performance was helped by a 2 per cent increase in the net profit contribution of its banking and financial services (BFS) division, contributing $385 million to the group’s profit.

The BFS division was bolstered by 21 per cent growth in the bank’s Australian mortgage portfolio, which grew from $36.1 billion in 1H19 to $43.6 billion.

Advertisement
Advertisement

According to Macquarie, its mortgage growth was driven by “strong demand” in lower loan-to-value ratio (LVR) and owner-occupier lending channels.

Macquarie has also continued to gain popularity in the broker space, as revealed in the Australian Finance Group’s (AFG) mortgage and competition index for the September quarter, which is based off data collected by the aggregator’s network of 3,000 brokers.

According to the index, Macquarie’s share of the broker space increased from 9.7 per cent as at 30 June to 11.4 per cent in the three months to 30 September.

The bank’s broker market share has more than doubled over the 12 months to 30 September, from 4.6 per cent, and is ranked second overall (when excluding subsidiaries), behind only the Commonwealth Bank.

Following the release of the group’s 1H20 results, Macquarie Group managing director and CEO Shemara Wikramanayake said she was pleased with the group’s overall result.

PROMOTED CONTENT


“Our first half result highlights the benefits of the business and geographic diversity of the group, with increased client activity across many of our business lines and favourable market conditions across the commodities and global markets platform in particular,” she said.

Ms Wikramanayake said she is confident the group will deliver a positive result in FY20, despite Macquarie acknowledging that it expects the FY20 result to be slightly down on FY19.

 “Macquarie remains well-positioned to deliver superior performance in the medium term due to: our deep expertise in major markets; strength in business and geographic diversity and ability to adapt the portfolio mix to changing market conditions; the ongoing program to identify cost saving initiatives and efficiency; a strong and conservative balance sheet; and a proven risk management framework and culture,” she concluded.

[Related: ANZ still grappling with ‘nuanced’ lending environment]

Macquarie reports 21% mortgage book growth
Macquarie
mortgagebusiness

If you have ever considered how you could better service your SME clients but lack the knowledge or confidence to do this beyond referring them on, this is a must-attend event for you. Don't miss SME Broker Bootcamp, a jam-packed, free-to-attend, practical workshop. Register today and secure your place at this interactive, flexible, must-attend event.

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

Land values across NSW increased by 24 per cent in the last 12 months to 1 July 2021, according to a new report by the NSW Valuer General. ...

Unit and private build commencements collapsed during the September quarter, marking the first unanimous fall in over two years. ...

New Zealand’s Treasury has confirmed the appointment of its new chief economic adviser, nabbed from a big four bank. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think APRA's bank buffer changes will see more borrowers use non-banks?

Website Notifications

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