Broker News

Majors lose market share

The latest AFG Competition Index shows the major lenders posted a 4% decrease in market share in November, lead by more refinancers opting for non-majors.

The Index shows that overal major lender market share dropped from 68.55% in October to 64.09% in November, which AFG says is a post-GFC low.

This was driven by a notable drop in the majors’ share of the refinancing market, which fell from 61.71% in October to 56.7% in November.

“The non-majors lifted their share of the refinancing market to 43.2% across the last quarter,” notes AFG general manager of sales and operations, Mark Hewitt.

“Suncorp with an increase of 3.3% and AMP with a lift of 2.1% led the way with refinancers, largely at the expense of the Westpac stable,” he says.

The majors also lost ground in other key segments including the fixed rate market (down from 72.50% to 68.06% to be down by 7% over the quarter), the investor market (down from 70.10% to 68.74%) and the first homebuyer market (down from 71.26% to 67.04%).

Non-majors on the other hand increased total market share from 31.45% on October to 35.91% in November.

Other key results include:

  • ANZ had the highest overall market share among the majors in November (17.53%), followed by CBA (16.07%), NAB (9.23%) and Westpac (8.23%).
  • Among the non-majors, AFG recorded the highest overall market share last month (8.23%), followed by Suncorp (4.80%), ING (4.05%) and AMP (3.34%).
  • In the fixed rate market, ING had the highest market share among non-majors at 7.7%, followed by ME (4.85%), Suncorp (4.59%) and AFG (4.02%).
  • Among investors, AFG lifted its market share over the month from 9.54% to 10.85%, to top the table among non-majors.
  • And in the first homebuyer segment, Suncorp lifted its share from 3.18% to 4.88% in November, to just edge out AFG (4.46%) with the highest market share.

Published on: Monday, December 19, 2016

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