Australian Mortgage Report: Quarter 1 2010 – Brief CoreData
Report Extracts Below:
1.1 St George and Bankwest perform strongly
The St George and Bankwest brands were the surprise success stories during2009, when many considered there would be a customer exodus post therespective Westpac and Commonwealth Bank takeovers.The St George mortgage book increased 14.7% for the year ending December2009, with Bankwest up 29.4%.
1.2 Tier 2 banks lending continues to struggle
During 2009 the Tier 2 banking sector continued to lose mortgage market shareto the big four banks, with restricted lending volumes due to lack of funding.The big four banks can access cheaper lines of wholesale funding compared toTier 2 banks, due to higher credit ratings.
1.3 ‘Big two’ now have 50% market share
The ‘big two’, Commonwealth Bank and Westpac by the end of 2009 hold 50.0%of all outstanding mortgages in Australia, with market share continuing toincrease each quarter.ANZ and National Australia Bank market share was unchanged for the year,with the biggest losers the non-bank lenders whose share fell to 4.8% from8.5%.
1.4 Commonwealth Bank hits $280 billion
The 25.9% market share ranks the Commonwealth Bank as the largestmortgage lender in Australia, with a 21.6% book jump to $280 billion for yearending December 2009.
1.5 Westpac reaches $260 billion
Westpac attracted very negative media attention in December when the bankboosted the standard mortgage variable by 45 points, after the official cash rateincrease of 25 points. With a mortgage book of $260 billion and mortgagemarket share of 24.1%, Westpac can potentially afford to have weaker customeracquisition in the short term, as the bank increases margins on the book grownduring the Global Financial Crisis.