Macquarie is advancing a strategy to deploy its successful mortgage market playbook to take on the big four and No.1 business lender National Australia Bank in business loans, worsening the margin pain suffered by the major banks.The “maverick” banking division, as Macquarie was described by the Australian Competition Tribunal, delivered a net profit of $1.24 billion, up 3 per cent, on operating revenue of $3.2 billion, up 8 per cent for the year to March 31.
The major banks are watching Macquarie like hawks and indicated this week they are not prepared to cede market share. New NAB CEO Andrew Irvine described NAB’sMr Irvine recalled on Thursday the first newspaper article he read after arriving in Australia in 2020 to lead NAB’s business bank; the topic was other banks coming after its business banking crown.
Macquarie said on Friday it would continue to grow home loans through brokers and also its direct digital channels. LikeMacquarie said earnings tailwinds from growing deposit volumes and the full-year benefit of the rising interest rate environment had been partially offset by margin compression, including from ongoing lending competition and higher funding costs.“Competitive market dynamics continue to drive margin pressure,” said UBS analyst John Storey.