Investors of S&P/ASX 200 Index (ASX: XJO) bank share Macquarie Group Ltd (ASX: MQG) can seemingly get excited. The bank is gaining market share – so could this be bad news for Commonwealth Bank of Australia (ASX: CBA) and others?
Some investors may not think of Macquarie as one of the leading domestic banks but for the past few years, it has been making ground on its ASX bank share competitors.
Besides banking, Macquarie has three other business segments – asset management, its investment banking segment called Macquarie Capital, and its commodities and global markets (CGM) business.
The banking division can be capable of providing fairly consistent earnings, which is why Macquarie regularly calls it 'annuity-like'. The company is making good progress in expanding this division, according to the Australian Financial Review.
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What's happening for Macquarie shares?
With interest rates shooting higher in Australia, ASX 200 bank shares are competing hard to try to win and retain customers. The AFR reported that some banks are offering discounts as high as $5,000 for an average mortgage.
It's reported new data shows Macquarie's owner-occupier loan book increased by 4.7% in the three months to 31 January. That also represents a 22.6% increase over 12 months.
Other big banks are also seeing growth but at a much slower pace. ANZ Group Holdings Ltd (ASX: ANZ) saw owner-occupier loan growth of 1.89% over the latest three-month reporting period, while CBA's growth number for the three months was 1.87%.
In terms of growth over 12 months, the big four ASX 200 bank share that achieved the most growth was National Australia Bank Ltd (ASX: NAB), which achieved 10%.
While loan growth is still occurring, the higher interest rates have hurt property values while demand for loans from new borrowers is dropping, according to the AFR.
According to analysis of lending data, Macquarie is now reportedly writing around 5% of all home loans in Australia because of its "fast approval times".
In Macquarie's update for the three months to 31 December 2022, it said its banking division had total deposits of $125.7 billion, up 8% on 30 September 2022, and the business banking loan portfolio increased 2% to $12.5 billion.
Outlook for the banking division
In Macquarie's quarterly update, it said it's expecting growth in its loan portfolio, deposits, and platform volumes. Macquarie also said that market dynamics continue to drive margins.
It's continuing to monitor its provisioning, while expenses are expected to rise to support volume growth, technology investments, and regulatory requirements.
Despite the growth of the business, Macquarie said that it continues to "maintain a cautious stance, with a conservative approach to capital, funding and liquidity that positions" it to "respond well to the current environment".
Macquarie share price snapshot
Since the start of 2023, the ASX 200 bank share has risen around 15%.
