ASB loses home loan market share
ASB Bank lost market share of the mortgage market in the December quarter, its first loss since the June quarter of 2003, although its net profit for the quarter jumped 21.6%.
Monday, April 9th 2007, 10:23PM
by Jenny Ruth
Its mortgage book still grew by $1.03 billion to $31.16 billion but its market share eased from 24.13% in September to 24% in December. In June 2003, ASB's market share was 20.69%.
"We see this as a slight levelling off in that quarter," says ASB head of retail banking Ian Park. Given the bank's previous growth "and the strong competitive nature of the market, we are comfortable with our current growth levels," he says.
"Whilst we don't expect to rise every quarter, we have been delighted with our progress to date."
Park says that AC Nielson research published in December rated ASB as the mortgage provider most likely to be used.
"Interesting to note also that our March figures are looking very strong," he says.
HSBC's latest GDS makes it look like both its profit and its share of the mortgage market surged in the December quarter.
However, financial controller Craig Bell says that in prior periods HSBC has "incorrectly classified 'trusts and limited liability companies' as 'other assets,' which has distorted the reporting of its mortgage book.
HSBC's GDS shows December quarter net profit surged 59% to $8.8 million, bringing the annual increase to 17.7%. Bell says that $2 million of that increase represented the write-back of loss provisions made previously that weren't needed.
The GDS also shows its mortgage book jumped from $1.94 billion at the end of September to $2.32 billion in December, lifting its market share from 1.55% to 1.79%. HSBC has been losing market share every quarter since June 2003, when it was 3.82%, following its purchase of the AMP mortgage book.
HSBC is in the process of selling the remaining $720 million AMP book to the government-owned Kiwibank.
Bell says the trend in its mortgage book is still down.
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