Westpac brought in 42.7% of its loans through the third party network as of September this year, up slightly from the 42.1% recorded the year before.
These figures come from the bank’s annual financial results released yesterday (6 November) which also found that a total of $11.4bn of loans were switched from interest-only to principal and interest for the major lender.
The vast majority of these changes ($7.9bn) were initiated by customers while $3.4bn was due to borrowers reaching the end of their interest-only period.
Net mortgage flows for the second half of 2017 equalled $13bn for the big four bank with levels remaining the same year on year.
Volumes of fixed loans are now sitting at 21% of Westpac’s total mortgage book – an increase of four percentage points from the year prior.
Interest only loan volumes are on the decline, falling from 51% of the total portfolio in 2H16 to 46% in 2H17. Flows within this loan product have dropped from 50% in 2Q17 to 26% in 4Q17.
Total annual mortgage growth was 5.7% by the end of the September quarter, below system growth of 6.6%. This was a reversal of trends a year earlier where system growth was 6.4% and total mortgage growth equalled 7.6%.
Both 30+ day delinquencies and 90+ day delinquencies have remained steady at 130 basis points and 67 basis points respectively. Seventy per cent of Westpac’s customers are ahead on their repayments, including those with offset account balances.
Total mortgage market share for Westpac now sits at 23% while total mortgage portfolio has been reported at $427.2bn, up 3% from $413.9bn in 1H17. The bank also had $38.1bn of mortgage offset balances as of the end of September.
Of Westpac’s current loan book, 55.5% is owner occupied, 39.8% is investor, and 4.8% is portfolio loan/line of credit.
Reported net profit after tax was up 7% year on year and now sits at $8.0bn.
“Our primary goal in 2017 was to carefully balance growth and returns, while meeting all of our new macro-prudential regulatory requirements. We achieved the required macro-prudential targets for home lending. The credit quality of our loan portfolio is in great shape with stressed assets reducing during the year,” said Westpac CEO Brian Hartzer.
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