The non-bank lender has announced that its loan settlements have risen by 27.5 per cent in a year, rising to $2.2 billion by 31 December 2017.
Homeloans Ltd has reported a net profit after tax (NPAT) of $11.9 million in the first half of the 2018 financial year (HY18), aided by loan settlement growth and its 2016 merger with RESIMAC.
The financial results also show that its loan book grew by 31 per cent from the previous corresponding period (pcp).
In the six months leading to 31 December 2017, the mortgage distribution company recorded a net profit after tax $11.9 million, with a normalised NPAT of $12.9 million, up by 57.3 per cent from the pcp.
Further, total principally funded loans and advances grew by 31 per cent to $7.6 billion, with total assets under management also increasing by 18.1 per cent from the pcp to $11.1 billion.
According to Homeloans, the results reflect strong underlying momentum from its merger with RESIMAC in October 2016, the development of a larger broker distribution network, successful acquisitions across the direct channel and a growing operation in New Zealand.
“This result certainly reinforces the success of our post-merger focus — that is, growing the loan book by expanding our distribution networks and enhancing our customer experience and service proposition,” Homeloans joint CEO Scott McWilliam said.
“Assets continue to grow ahead of market, supported by strong principally funded volumes through our broker and direct channels.
“We stand apart from the majors because of our ability to provide a wide range of products to suit a broad range of borrower needs.”
Moreover, Homeloans attributed the rise in its principally funded lending to growth in RESIMAC’s global funding platform, with three RMBS (residential mortgage-backed securities) deals from RESIMAC’s capital market program raising $1.7 billion.
RRESIMAC’s New Zealand subsidiary also raised a further NZ$250 million, which Homeloans also noted as contributing to its underlying growth.
Homeloans expects further growth in the second half of the 2018 financial year, which it believes would be driven by “solid settlement flows”, while also committing to further develop its assets under management through both the third-party and direct channel.
Joint CEO Mary Ploughman believes that Homeloans is well placed to generate further growth in the second half of 2018.
“The business has experienced a strong first half and we are well placed to grow further, taking advantage of our mature and diverse funding program,” the joint CEO said.
“The underlying quality of our loan portfolios and excellent call history on our transactions continues to support our issuance in the wholesale markets.
“We are excited by the future prospects on both the origination and funding sides of our business.”