BNK Banking Corporation is looking to grow its bank subsidiary into one of the nation’s top 10 lenders after a refresh of its lending model saw returns grow 230% in 12 months.

BNK Banking Corporation was formed in 2018 through the merger of Western Australian bank Goldfields Money Limited, and mortgage aggregator Finsure – which achieved $2 billion in monthly settlements in December 2020.

The banking arm of the business received $17 million of this milestone settlement figure, placing BNK (the bank) in 22nd place on Finsure’s lender panel (which also includes the likes of Commonwealth Bank, NAB, and Westpac).

Speaking at Reach Markets’ fortnightly ‘Meet The CEO’ session, BNK banking and wholesale CEO Brett Morgan noted this was up from 32nd in September 2020.

But he added the company has set itself the goal of reaching tenth or higher.

The goal comes as BNK’s banking divisions refocus on balance sheet lending. 

Although the company’s two banking brands – BNK and Better Choice – have lent out and are supporting over $2.4 billion in home loans, only a small portion of this has come from the balance sheet – meaning the majority of their loans generate little returns.

However the past 12 months has seen both brands work to reset that mix, shifting from 18% balance sheet loans in the first half of 2021 to 62% balance sheet loans in January 2021.

This change has driven returns on new lending activities up 230%.

BNK Banking’s CEO Brett Morgan recently joined us for our fortnightly webcast ‘The Insider: Meet the CEOs’. This article summarises some of the information he shared with us during the session. You can watch a full recording below, or you can click here to book into our next session where we will be joined by Scott Beeton, Chief Executive Officer of TZ Limited (ASX: TZL) and Bryan Granzien, Executive Chairman of Carpentaria Resources (ASX:CAP). 

‘The Insider’ is a great way to hear directly from the CEOs of fast growing Australian businesses. You will get valuable insights to their industries and companies future prospects.

The Insider: Meet the CEOs – Event Details:

Date: Wednesday, 14th April Time: 12pm AEST Format: Online, 2 x 15 minute presentations

This is a free event. Click here to book your spot.

Reach does not assume responsibility for the accuracy or completeness of any information provided, and the views expressed are not reflective of Reach Markets position. Any advice contained within this presentation is general advice and does not consider your personal circumstance, you should consider whether it’s appropriate for you. 

The information we are giving you is for educational purposes only. “Investing is about understanding your risk” and every time you invest in the share market there is a risk of loss.

Past performance is not a reliable indicator of future performance.

Sources:

• Australian Broker, Finsure hits $2bn in monthly settlements
• BNK Banking, BNK Group 2Q21 Trading Update
• BNK Banking, BNK Banking Corporation FY2021 Half Year Results
• Finsure, Finsure Services
• Investor Insight, Goldfields Money – Finsure Merger Will Create Digital Banking Game-Changer