Macquarie Bank continues to outperform.
Financial services firm and parent company Macquarie Group — which includes Macquarie Bank, Macquarie Asset Management (MAM), Commodities and Global Markets (CGM) and Macquarie Capital businesses — reported its full financial-year 2026 results for the year ending 31 March on Friday, revealing that its banking division's home loan book surged 28%, year–over-year, to $181.3 billion.
Macquarie Bank, the nation's fifth largest bank, now accounts for roughly 7.1% of Australia's mortgage market, with brokers originating more than 95% of all new home loans at the bank.
Wendy Brown, head of broker sales at Macquarie Bank, described the results as "a big milestone if you consider the highly competitive nature of the market," and pointed out that in 2010, Macquarie represented just 0.2% of the overall market.
"Our growth in mortgages hasn’t been an overnight success," she said.
The bank said the most recent results were underpinned by owner-occupier demand and a shift toward lower loan-to-value ratio (LVR) lending.
Macquarie's growth is unfolding in a more competitive lending market, shaped by higher interest rates and persistent inflation that are squeezing borrowers’ capacity. At the same time, several banks — including some of the Big Four — have signalled a push to expand their own proprietary lending channels in pursuit of higher margins, raising questions about the long-term role of mortgage brokers in Australia.
Examples are widespread across the market. National Australia Bank (NAB) recently revealed that its proprietary lending channels reached 50% in March, up from 35.3% of all new lending in the back half of 2023. Commonwealth Bank of Australia (CBA) has also shifted its focus toward direct lending, with home loans making up nearly 70% of its proprietary flow last spring. The bank has noted that broker-originated loans are 20% to 30% less profitable than those written directly. Last year, Bank of Queensland (BOQ) also said it was stepping up efforts to reduce reliance on the broker channel and bring more lending in-house.
Exceptions include ANZ and Macquarie. Despite ANZ's Chief Executive Officer Nuno Matos saying last October that the bank would prioritise growing in-house mortgage origination and strengthening its proprietary channel under its five-year growth strategy ANZ 2030, the bank's proprietary lending slipped to 31%, down from 33% in the latest half.
At Macquarie, more than 95% of new mortgage originations in the past year were sourced via the broker channel.
"What our results show is that it is possible to be profitable lending via the broker channel," Brown said. "We see a sizable and sustainable growth opportunity as more and more Australians partner with a broker when buying a home. While many of our competitors are looking to build their direct channels, we’re backing brokers.
"Our whole business is based around brokers and their businesses," the executive told Australian Broker. "Instead of telling them how they have to run their business, actually adapting our processes to make it easier for them and their customers has a huge impact.
“We recognise the growth in our home lending business over the past year, and indeed throughout our history, is thanks to our broker partners," she added. "It is brokers who are recommending us to their clients, driving our success and making more Australians nationwide Macquarie Bank customers.”
Brown added that over the past year, the bank has strengthened its broker offering, increasing investment in BDM coverage, credit assessment teams and digital capabilities.
"That momentum is helping us grow strongly alongside our broker partners," she said.
The group recorded full year net profits of nearly $4.85 billion, up 30%, year-over-year. In the second half, profits surged 93% higher than the first half to $3.19 billion.
The firm described its outlook as “cautious,” noting that its near-term performance could shift due to factors outside its control, including global uncertainty, persistent inflation, foreign exchange rates and regulatory change.
