Westpac’s Chief Executive Comfortable with Slow Growth
Chief executive of Westpac Banking Corporation, Gail Kelly, has claimed that she is comfortable with the bank’s home loan growth rate sitting behind the growth of their major competitors, as the industry itself is so competitive.
As the market saw the demise of many small competitors during the global financial crisis, the four major banks are now in a position where they are writing nearly 90% of all new mortgages.
With the highest standard variable rate of the big four banks, it’s no wonder Westpac isn’t seeing the same growth in home loans as their competitors.
At the moment, Kelly said that the bank’s priority is to raise deposits so that it can reduce its reliance on international wholesale markets.
Just a few years ago in 2009, Westpac and the Commonwealth Bank were selling mortgages left, right and centre because of the strong demand for mortgages. First home buyer grants and low interest rates meant that many people were entering the property market. During that year, Westpac picked up 2% of points in the market share.