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New bank outpaces big four in mortgage growth

One of Australia’s newest banks saw significant growth in broker settlements over the six months to 31 December last year.

Mystate Limited posted an after-tax profit of $14.9 million, slightly up from the previous comparative period's figure of $14.8 million.

Mystate CEO Melos Sulicich said the result reflected strong improvement in the group’s broker lending operations.

The group’s residential mortgage lending book saw growth of approximately 12 per cent in annualised growth terms.

Mr Sulicich described the result as a “substantial achievement which exceeded the loan growth of regional and major banks”, before adding that this momentum is expected to continue in the second half.

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“In December 2014, our home loan settlements through the broker channel exceeded retail settlements for the first time, and our broker portfolio is growing currently at more than 20 per cent annually,” he said.

“We are very pleased with the support we are receiving from mortgage brokers; it is clear that their clients are finding our proposition compelling.”

The results also showed the group’s product and pricing strategy attracted high-quality lending, with 60 per cent of home loans funded at lower than 80 per cent LVR.

Mystate’s new loan origination system, which aims to further strengthen services for mortgage brokers, is expected to kick off in the second half of 2014/2015.

MyState Bank, a subsidiary of MyState Limited, became an APRA-approved ADI last year.

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