Login
ISCOVER
Commonwealth Bank has told brokers it will continue investing in end-to-end loan processing, with brokers increasing their share of the group’s business.
The group, which includes Bankwest, reported revenues of $44.3 billion for the 12 months to 30 June 2014, which was 1.2 per cent lower than the previous year.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
However, total net profit rose 13.3 per cent to $8.6 billion, while the retail banking division, which includes the home loans business, grew its net profit by 12.4 per cent to $3.5 billion.
The group’s home loan balances rose 6 per cent to $302 billion, while its share of the home loan market remained steady at 25.3 per cent.
Broker loans increased by 8.7 per cent compared to in-house loan growth of 5.9 per cent. That helped brokers increase their share of bank business from 37 per cent to 38 per cent.
Average mortgage size rose 4.1 per cent to $254,000, with 76 per cent of customers ahead of schedule in their repayments.
First home buyers represented 12 per cent of home loan balances – down from 14 per cent the year before.
According to the results, the group has strongly improved its cross-selling since 2006/2007, with almost every product area enjoying year-on-year improvement.
Home loans per customer have grown from 0.18 to 0.22 during those seven years.
Wealth products have grown from 0.41 to 0.49, credit cards from 0.41 to 0.76, personal loans from 1.09 to 1.52, and deposit and transaction accounts from 1.09 to 1.52.
Meanwhile, Commonwealth Bank’s general manager of broker sales, Sam Boer, told The Adviser that brokers are an important component of the bank’s home loan distribution strategy.
“Brokers are very good at bringing new customers to the bank, and with our focus on customer satisfaction we provide proactive help to both broker and the borrower,” he said.
Mr Boer said Commonwealth Bank’s main aim in 2014/2015 would be to use its digital capabilities to deliver superior service to brokers so they can enhance their customers’ experience.
“This means we are investing in our end-to-end home loan process to provide a service proposition which will enhance the brokers’ professional reputation,” he said.
“We are also keen to support brokers who are willing to invest in their businesses through our market leading kaizen and lean productivity workshops.”
[Related: Fierce competition driving better broker service, says CBA]
