Australian Banks Face Mortgage Broker Headwind -- Market Talk

Dow Jones04-26

0350 GMT - Australian retail banks may see their profitability stymied due to the high cost of mortgage broker distribution, say UBS analysts John Storey and Jason Napier in a note. Accordingly, investor expectations of reduced competition driving improved return on equity for the sector needs to be tempered. Economic profit between a broker-originated mortgage and one written through the bank's own proprietary channel can be as wide as 8 percentage points, they note. These findings from UBS' own research reaffirm its cautious view of Commonwealth Bank, which they say is the most exposed to this industry disruption via brokers. UBS lowers its loan growth assumptions for CBA by 0.1% for FY 2024. (alice.uribe@wsj.com)

(END) Dow Jones Newswires

April 25, 2024 23:50 ET (03:50 GMT)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2430290869?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-04-26 11:50","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2430290869","market":"other","top_or_hot":-1,"title":"Australian Banks Face Mortgage Broker Headwind -- Market Talk","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0350 GMT - Australian retail banks may see their profitability stymied due to the high cost of mortgage broker distribution, say UBS analysts John Storey and Jason Napier in a note. Accordingly, investor expectations of reduced competition driving improved return on equity for the sector needs to be tempered. Economic profit between a broker-originated mortgage and one written through the bank's own proprietary channel can be as wide as 8 percentage points, they note. These findings from UBS' own research reaffirm its cautious view of Commonwealth Bank, which they say is the most exposed to this industry disruption via brokers. UBS lowers its loan growth assumptions for CBA by 0.1% for FY 2024. (alice.uribe@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  April 25, 2024 23:50 ET (03:50 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Australian Banks Face Mortgage Broker Headwind -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAustralian Banks Face Mortgage Broker Headwind -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-26 11:50 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>0350 GMT - Australian retail banks may see their profitability stymied due to the high cost of mortgage broker distribution, say UBS analysts John Storey and Jason Napier in a note. Accordingly, ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2430290869","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2430290869","pubTimestamp":1714103400,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0350 GMT - Australian retail banks may see their profitability stymied due to the high cost of mortgage broker distribution, say UBS analysts John Storey and Jason Napier in a note. Accordingly, investor expectations of reduced competition driving improved return on equity for the sector needs to be tempered. Economic profit between a broker-originated mortgage and one written through the bank's own proprietary channel can be as wide as 8 percentage points, they note. These findings from UBS' own research reaffirm its cautious view of Commonwealth Bank, which they say is the most exposed to this industry disruption via brokers. UBS lowers its loan growth assumptions for CBA by 0.1% for FY 2024. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","XKO.AU":"标普/澳交所 300指数","BK4585":"ETF&股票定投概念","NABZY":"National Australia Bank Ltd. (Victoria, Australia)","BK7135":"综合性银行","ANZ.AU":"ANZ GROUP HOLDINGS LTD","BK4504":"桥水持仓","CBA.AU":"COMMONWEALTH BANK OF AUSTRAL","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","USB":"美国合众银行","BK4207":"综合性银行","NAB.AU":"NATIONAL AUSTRALIA BANK LTD","XAO.AU":"标普/澳交所 普通股指数","BK7511":"ESG概念","WBC.AU":"WESTPAC BANKING CORPORATION","XJO.AU":"标普/澳交所 200指数","BK4559":"巴菲特持仓"},"translate_title":"澳大利亚银行面临抵押贷款经纪人逆风——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"XKO.AU":1,"XJO.AU":1,"XAO.AU":1,"CBA.AU":0.9,"WBC.AU":0.9,"USB":0.9,"NABZY":0.9,"NAB.AU":0.9,"ANZ.AU":0.9},"content_text":"0350 GMT - Australian retail banks may see their profitability stymied due to the high cost of mortgage broker distribution, say UBS analysts John Storey and Jason Napier in a note. Accordingly, investor expectations of reduced competition driving improved return on equity for the sector needs to be tempered. Economic profit between a broker-originated mortgage and one written through the bank's own proprietary channel can be as wide as 8 percentage points, they note. These findings from UBS' own research reaffirm its cautious view of Commonwealth Bank, which they say is the most exposed to this industry disruption via brokers. UBS lowers its loan growth assumptions for CBA by 0.1% for FY 2024. (alice.uribe@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  April 25, 2024 23:50 ET (03:50 GMT)\n\n\n  Copyright (c) 2024 Dow Jones & Company, Inc.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2430290869"}