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Bank of Queensland has announced plans to almost double its pool of accredited brokers this financial year after posting record profits.
The bank posted a record net profit of $260.5 million for the 12 months to 31 August 2014, which marked a 40.2 per cent increase on the previous financial year.
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Total lending jumped 9.1 per cent to $38.3 billion, while retail lending rose 0.8 per cent to $28.5 billion.
Bank of Queensland returned to the third-party channel in March 2013. It ended 2013/2014 with 1,300 accredited brokers and announced that it planned to expand that number to 2,500 by the end of 2014/2015.
Head of third-party distribution Brad Rockwell told The Adviser that brokers generated 14 per cent of the bank’s new home loans in the last financial year.
“As we expand our relationships with brokers in Queensland and elsewhere and improve the efficiency of our own back office, we expect this percentage of mortgage broker-originated business to increase further,” he said.
Mr Rockwell said a key part of the bank’s strategy is to invest in all of its distribution channels, including the third-party channel.
That involves building more broker relationships, providing products and remuneration structures that meet broker needs, and delivering transparent and efficient service, he added.
“It’s an extremely competitive market at the moment which is apparent in a number of areas, including the interest rate offers – official and under the table – and other lending incentives that are being offered,” he said.
“Our approach in this market has been to focus on increasing the range of ways that customers can interact with us, which includes strengthening relationships with brokers and maximising the quality of the business we originate.”
[Related: Bank of Queensland eyes expansion with aggregator deals]
