Login
ISCOVER
Jessica Darnbrough
National Australia Bank’s ‘breakup’ advertising campaign and decision to offer the lowest standard variable rate of all the majors for 2012 is paying dividends for the bank, new research has revealed.
According to the latest JP Morgan Australian Mortgage Industry Report, NAB has not only managed to snag a greater share of the mortgage market over the last 12 months, but the lender has also managed to grow 9 per cent above system growth.
While the report attributes a lot of the lender’s recent success to its low standard variable rate and national advertising campaign, it also highlighted the major’s re-engagement with the broker channel in playing a key part of the banks growth.
NAB's investment into the broker channel was reflected by Homeside's showing in this years Third Party Banking Report - Major Lenders, where brokers rated the bank first in 13 out of the 17 categories.
Westpac, on the other hand, has struggled to retain its share of the mortgage market, as the lender continues to “focus on proprietary distribution channels”.
Over the last 12 months, Westpac has grown at 4 per cent below system growth.
“Westpac’s more recent market share slippage also coincides with its more assertive mortgage pricing to reclaim higher funding costs and maintain profitability,” the report read.
“Whereas peers have re-priced the domestic mortgage book by approximately 30 basis points over the course of 2012, Westpac have re-priced by 35 basis points.
“Westpac is now approximately 10 basis points above its peers, suggesting that potential further market share losses are likely.”
JOIN THE DISCUSSION