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Macquarie loan book lifted 4% in 3Q23

The lender’s mortgage book continued to increase in the three months to December, despite its banking business arm reporting a fall in car lending.

Macquarie Group has released its third-quarter results for the financial year ending 31 March 2023 (3Q23).

The lender’s home loan portfolio increased by 4 per cent to $105.4 billion, up on 30 September 2022 results while the business banking loan portfolio increased 2 per cent to $12.5 billion.

Home loans now make up 35 per cent of the lender’s asset portfolio, up from 32 per cent in the previous quarter.

Its total deposits came in at $125.7 billion as at 31 December 2022, marking an 8 per cent increase on September 2022 quarter.

The bank’s mortgage portfolio pushed over $101 billion reported in its half-year results ended 30 September 2022, noting an increase in lower loan-to-value ratio and owner-occupier lending tiers.

The average LVR at origination was 65 per cent in the period ended September 2022, the bank outlined, with the same proportion of its mortgage book being for owner-occupiers.

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As the Reserve Bank of Australia (RBA) continues its rate hiking phase, lifting the cash rate to 3.35 per cent on 7 February, consumer spending is expected to continue to ease with Macquarie noting “transaction activity is expected to be substantially down on a record FY22”, with market conditions weakening.

An ease in transaction activity was reflected in car lending, which fell 10 per cent to $6.6 billion in the December quarter, continuing its fall since March 2022.

Overall, Macquarie Group lender reported a $12.5 billion surplus, as at 31 December 2022, up from $12.2 billion as at 30 September 2022.

Looking ahead, the bank said it would seek “growth opportunities through intermediary and direct retail client distribution, platforms and client service” as well as opportunities to modernise technology to improve client experience.

Meanwhile, the lender has seen its popularity grow (particularly in the third-party channel) due to its fast and consistent turnaround times.

In the latest monthly Broker Pulse survey (January 2022), which calculates lenders’ business development managers (BDMs) rankings by 245 brokers, BDMs increased their positive ratings from 87 per cent in November to 92 per cent in December.

However, Macquarie Bank slid from first to second position overtaken by Bankwest with 96 per cent of broker respondents giving Bankwest BDMs a positive rating.

Commenting on the findings, Momentum Intelligence director, Michael Johnson, said: “It is great to see BDMs be recognised for the great work that they are doing to support brokers with many receiving high satisfaction levels from brokers.”

[Related: Macquarie loan book grew 13% in 6 months]

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