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National Australia Bank (NAB) has released its full-year results for the financial year ending September 2025 (FY25), revealing that broker-originated mortgages are continuing to drop in Australia.
NAB’s results show that while the third-party broker channel is still originating the majority of its new Australian home lending, the third-party channel has lost its firm grip above the 60 per cent threshold as the bank puts its focus into driving proprietary lending.
According to the FY25 results, the broker channel is now responsible for around 59 per cent of all new business in FY25.
Overall, brokers originated $27.5 billion of the $47 billion of new lending in 2H25 and $24 billion of the $41 billion in new loans in 1H25.
This figure marks a substantial reduction in market share, down from the flows recorded in FY24, which were both over 60 per cent. In fact, NAB had seen brokers originate 64.9 per cent recorded in the first half of FY24 (1H24).
A focus on proprietary lending
This decline comes as NAB continues its new focus on growing proprietary lending in order to boost shareholder returns and improve its return on equity (ROE). According to NAB CEO Andrew Irvine, proprietary home lending is 20–30 per cent “better returning” than the broker book.
The proprietary channel’s growth led to a surge in proprietary flows, which have risen by 46 per cent between FY24 and the end of FY25.
The figures clearly show the sustained erosion of the broker channel’s share:
- In the first half of FY24 (1H24), brokers commanded 64.9 per cent of new lending.
- By the second half of FY24 (2H24), this fell to 61.1 per cent.
- The first half of FY25 (1H25) saw flows drop to 59.6 per cent.
- The second half of FY25 (2H25) finalised the trend, with broker flows bottoming out at 58.6 per cent.
This meant NAB’s own channels were responsible for just under 41 per cent of new home lending in FY25, up significantly from 38 per cent in the prior year.
The bank attributed the successful pivot to specific investments in proprietary lending, including onboarding approximately 270 new proprietary home lenders in FY25 and achieving a 27 per cent increase in banker productivity, driven by enhanced technology and lead generation systems.
The focus on proprietary lending is set to continue. NAB confirmed plans to further increase its internal market share in FY26 by recruiting new talent, uplifting existing banker capability, and leveraging AI solutions to simplify the mortgage experience.
Speaking to media on Thursday morning (6 November), NAB CEO Andrew Irvine commented: “Our focus on strengthening our proprietary home lending is working. In the past two years, proprietary drawdowns have increased by 46 per cent and, in FY25, the proportion of mortgages written through our bankers improved to 41 per cent. This has been achieved by investing in customer relationships, by investing in new bankers and the tools to help them, and by introducing solutions that deliver simpler, safer and faster outcomes.”
NAB’s annual report also suggests that the increasing use of brokers is a strategic risk to the bank.
“Competition for customers and the industry’s increasing use of brokers may lead to a reduction in profit margins and/or a loss of market share and risks the disintermediation of customer relationships,” the annual report for 2025 reads.
“Intense competition increases the risk of additional price pressure, especially in commoditised lines of business, such as mortgages, where the providers with the lowest unit cost may gain market share and industry profit pools may be eroded. Such factors may ultimately impact the group’s financial performance and position, profitability and returns to investors.”
Despite the sharp reduction in market share, NAB did reiterate its commitment to the third-party channel. The bank stated it would continue to support brokers by working to deliver “seamless customer and broker experiences” through ongoing simplification of processes and systems.
Speaking to Broker Daily, Adam Brown, NAB’s executive for broker distribution, commented: “We don’t set a fixed target for how much lending comes through brokers versus directly with our bankers.
“Our priority is giving customers choice – supporting them in whichever channel works best for them.
“It’s about striking the right balance, not chasing a hard ratio. That approach lets us maintain strong partnerships with brokers while continuing to grow our own proprietary lending.”
Overall, NAB reported $7 billion in cash earnings, down 0.2 per cent on FY24 and a statutory net profit of $6.8 billion.
[Related: NAB broker flows drop as it focuses on proprietary channel]