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Bendigo & Adelaide Bank has reported growth in its third-party business, although first home buyers’ share of borrowing has continued to fall.
The group delivered a $372.3 million net profit for the 12 months to 30 June 2014, which was 5.7 per cent up on the previous financial year.
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Total income rose 6.3 per cent to $1.4 billion, while third-party income jumped 8.8 per cent to $296.4 million.
The lending mix was 66.5 per cent residential, 23.4 per cent commercial, 6.7 per cent consumer and 3.4 per cent margin.
Brokers generated 48 per cent of residential lending, compared to 46.8 per cent the previous year.
First home buyers represented 7.1 per cent of all residential lending – down from 8.3 per cent in 2012/2013, 8.5 per cent in 2011/2012 and 8.9 per cent in 2010/2011.
Owner-occupiers increased their share of residential lending from 64.4 to 65.1 per cent, while the investor share decreased from 35.6 to 34.9 per cent.
The average loan size jumped from $187,000 to $198,000 – an increase of 5.9 per cent – while average LVRs declined from 62.5 to 62.4 per cent.
Variable loans went from representing 79 per cent of residential lending to 70 per cent, while fixed loans rose from 21 to 30 per cent.
Mortgages with LMI fell from 40.3 to 37.9 per cent and low-doc loans fell from 5.2 to 3.9 per cent.
Adelaide Bank general manager Damian Percy said brokers were important to the group’s success.
"In addition to making up almost half of all mortgages written by the group, the third-party lending businesses contributed almost 30 per cent of the group’s profit,” he told The Adviser.
"Unsurprisingly, as an ‘intermediary-only' bank, the third-party mortgage market remains a key focus for us, which is why we have and will continue to invest in our third-party businesses".
Adelaide Bank’s senior manager of broker distribution, Fons Caminiti, said brokers could expect the bank to deliver continual process enhancement over the next 12 months, along with other improvements.
“These include a highly efficient new document portal to enable brokers to more easily upload applications to Adelaide Bank,” he said.
"In addition, brokers can expect further enhancements to our current product offering.”
[Related: Adelaide Bank cuts fixed rates by 40 points]
