Macquarie closes in on competitors in mortgage market

According to the latest Monthly Authorised Deposit Taking Institutions Statistics (MADIS) from the Australian Prudential Regulation Authority (APRA), Macquarie Bank’s mortgage book grew by approximately $1.7 billion in November, outpacing its closest non-major competitors in the mortgage market. 

Macquarie’s home loan portfolio growth was driven by an increase of approximately $1 billion in its owner-occupied book, which jumped from $22.3 billion to $23.3 billion in November.

A rise in investor home loan volumes also bolstered its underlying mortgage book, with its investor portfolio increasing by roughly $700 million, from $18.1 billion to $18.8 billion.

Macquarie’s overall mortgage book grew to $42.1 billion in November, closing the gap between its nearest non-major competitors with larger mortgage books, which include ING ($50.5 billion), Suncorp ($42.9 billion) and Bendigo and Adelaide Bank ($42.2 billion).

This follows remarks from the head of Macquarie Group’s Banking and Financial Services (BFS) division, Greg Ward, in November, who stressed the competitive utility of fast turnaround times in his appearance before the House of Representatives standing committee on economics.

According to Mr Ward, Macquarie’s investment in faster turnaround times has partly led to a sharp increase in its share of new mortgages settled in Australia.

“Our current share of the mortgage market is 2.3 per cent, but our share of current flow of new business [from the broker channel] is about 12 per cent, so we are growing very fast, and I think it’s that we are the best in market in terms of turnaround times for a mortgage approval,” he said.

However, the latest APRA data revealed that Bendigo and ING also reported portfolio growth over the month of November, albeit less pronounced.

ING’s overall portfolio grew by approximately $400 million and came exclusively via its owner-occupied book, which increased to $41.2 billion.

Bendigo’s total mortgage book increased by $500 million, also driven by a rise in its owner-occupied book ($400 million) and supported by a slight increase in its investor portfolio ($100 million).

Meanwhile, Suncorp’s residential mortgage portfolio contracted in November, exclusively as a result of a $100-million dip in its owner-occupied book ($30.6 billion).

[Related: Westpac volumes continue to fall]