35% of mortgages now by non-majors as CBA’s share slides, according to AFG's Competition Index
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35% of mortgages now by non-majors as CBA’s share slides, according to AFG competition index
The share of mortgages written by the non-major banks has increased, according to data from AFG’s June Competition Index.
35% of all mortgages are now written by non-majors, the highest proportion since December last year. In contrast, CBA’s share declined to 11.81% of loans, down from 16.62% in December.
AFG general manager of sales and operations Mark Hewitt noted that “With CBA, AFG believes this is the result of a deliberate strategy to pull back from the investor and interest only markets to meet the lending caps mandated by APRA.When combined with their subsidiary Bankwest, CBA has dropped their total market share from 25.5% to 15.5% in the same period.
Ratings downgrade hitting all
Non-majors increased their share in June despite ratings agency S&P global downgrading their ratings in late May. The well-publicised down grade of AMP, Adelaide Bank and others was taken as an indication that non-majors would struggle to compete, despite the bank tax.
On Tuesday Moodys, the other major ratings agency, downgraded a range of banks including all four majors. With both majors and non-majors raising rates, AFG’s figures suggest ratings downgrades may not provide banks with an immediate competitive advantage, at least in an immediate sense.
Suncorp was the biggest winner in AFG’s index, nearly doubling its market share from 3.83% to 6.67%. Suncorp’s share of refinancing now stands at 8.05%, above that of CBA. NAB and Westpac also made smaller gains, the latter in fixed rate mortgages.
With a Senate committee backing the Government’s $6.2bn bank levy, which applies to the big four plus Macquarie, non-majors may be hoping consumers will look to other banks.
The share of mortgages written by the non-major banks has increased, according to data from AFG’s June Competition Index.
35% of all mortgages are now written by non-majors, the highest proportion since December last year. In contrast, CBA’s share declined to 11.81% of loans, down from 16.62% in December.
AFG general manager of sales and operations Mark Hewitt noted that “With CBA, AFG believes this is the result of a deliberate strategy to pull back from the investor and interest only markets to meet the lending caps mandated by APRA.When combined with their subsidiary Bankwest, CBA has dropped their total market share from 25.5% to 15.5% in the same period.
Ratings downgrade hitting all
Non-majors increased their share in June despite ratings agency S&P global downgrading their ratings in late May. The well-publicised down grade of AMP, Adelaide Bank and others was taken as an indication that non-majors would struggle to compete, despite the bank tax.
On Tuesday Moodys, the other major ratings agency, downgraded a range of banks including all four majors. With both majors and non-majors raising rates, AFG’s figures suggest ratings downgrades may not provide banks with an immediate competitive advantage, at least in an immediate sense.
Suncorp was the biggest winner in AFG’s index, nearly doubling its market share from 3.83% to 6.67%. Suncorp’s share of refinancing now stands at 8.05%, above that of CBA. NAB and Westpac also made smaller gains, the latter in fixed rate mortgages.
With a Senate committee backing the Government’s $6.2bn bank levy, which applies to the big four plus Macquarie, non-majors may be hoping consumers will look to other banks.
