Liberty financial has posted a 4 per cent fall in net profit to $35 million, but the non-bank lender has said it is still cautiously optimistic about the outlook as it diversifies its operating income.
The non-bank lender has recently moved into new areas of business to offset the effects of the global financial crisis.
According to the company’s managing director Sherman Ma, Liberty has branched into invoice finance, car loans and auto dealer floor plan financing.
Traditionally, the non-bank lender draws approximately 50 per cent of its revenue from residential mortgages.
But since the onset of the global financial crisis, Liberty’s loan book fell from $3.2 billion to $2.5 billion, a drop Mr Ma attributes to less demand and higher provisions.
Mr Ma said the company’s ability to diversify had acted as a buffer to the downturn.
“We will continue our operational discipline and retain our profits, and expect that as the economy improves we will be particularly well positioned to increase our activities,” he said.
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