Mortgage Choice has delivered its best-ever interim financial result on the back of strong revenue growth.
Total revenue for the group increased to $102.3 million in the six months to 31 December 2015 – up 5.4 per cent on the corresponding period last year – while franchise revenue grew 8.6 per cent.
Mortgage Choice’s net profit after tax on a cash basis was $10.1 million – up 12.4 per cent from the first half of the 2014-15 financial year.
The group’s home loan settlement volumes rose by 8.5 per cent to $6.2 billion, while its overall loan book grew 4.7 per cent to $50.7 billion.
Furthermore, the number of home loan leads generated by Mortgage Choice was up 41 per cent in the first half of 2015-16 compared to the corresponding period a year earlier.
Mortgage Choice’s financial planning arm also experienced significant growth over the period, increasing by 63 per cent from the first half of 2014-15 to the first half of 2015-16.
Mortgage Choice chief executive officer John Flavell said the strong results were in line with the highly aggressive performance hurdles the group had set itself.
“We have recorded our strongest-ever interim profit result, which is a testament to the Mortgage Choice business as a whole, as well as the strength of our plans and our ability to execute those plans,” he said.
“Our strong profit growth of 12.4 per cent has come from significantly growing our revenue and controlling our operating expenses whilst continuing to invest for future growth.
“Amidst an ever changing and increasingly complex housing market, the strength of our proposition has stood out. For the first time ever, the group recorded more than $6 billion in mortgage settlements for a half-year. Furthermore, we managed to grow our market share over the December quarter despite the fact that the housing finance market also grew at a significant pace.
Mr Flavell noted that while the big banks still have a 53 per cent share in Mortgage Choice’s settlement volumes, a shift towards non-major lenders has emerged.
“The majors and some of their subsidiaries have given away a little bit of share to some of the building societies and credit unions and some of the other non-banks,” he told The Adviser.
[Related: Flavell slams negative gearing changes]