Citi Australia’s efforts to invigorate its local home loan business have hit a snag with mortgage brokers encountering delays in securing accreditation from the bank.
In a notification sent to mortgage aggregators on Wednesday, Citi’s head of mortgage distribution Matt Woods revealed that the Covid-19 crisis had created “significant delays” for the bank providing training to new brokers wanting to originate the bank’s loan products.
“I just wanted to update you all by advising that Citi is currently experiencing significant delays within our accreditation training and execution team which is preventing timely completion of new broker accreditations,” Woods told aggregators in the note.
“This issue does not change Citi’s desire or commitment to servicing the broker market and the clients they represent but acknowledges that we require a process which better caters for the challenges that a post Covid-19 world brings.
“Further advices will be issued to update you on the progress of the digital means that we are working through to cater to your newest members in the near future.”
While Citi generated stellar earnings growth in 2019, with net profit rising 28 per cent to A$202 million, the home loan business underperformed in the six months to the end of June.
APRA data shows the size of Citi’s mortgage book declined by $109 million or 1.6 per cent in the June half, despite a system growth rate of 1.3 per cent.
In March, Citi’s local chief executive Marc Luet said in a report included in the company’s financial accounts that the mortgage operation was poised for growth.
“This business(mortgages) is set to capture a larger market share in the coming year," he said in the report.
Official data indicates that Citi has continued to expand its depositor base this year, with the bank’s holdings of retail deposits increasing by 3 per cent to almost $6.2 billion in the June half.
Citi’s deposit growth has outpaced many of its rival brands such as HSBC Australia, which recorded net retail deposit outflow of 0.2 per cent in the six months to the end of June.