Firstmac to acquire brokerage

The non-bank expects to complete the transaction on or around 9 May 2020 for approximately $2 million. 

According to Firstmac managing director Kim Cannon, the move would strengthen the group’s market position amid the ongoing COVID-19 crisis by diversifying its portfolio, which currently includes Loans.com.au and Savings.com.au. 

“During this time of crisis, we are taking a positive approach to business to ensure that we emerge out the other side with an even stronger company,” Mr Cannon said.

“These two businesses complement our existing brands very well and will help us expand car loans business over time to match our successful home loan operation.”

The announcement comes just a month after Treasurer Josh Frydenberg rejected the non-bank’s proposed acquisition of Queensland-based lender Maleny Credit Union due to “ownership issues” and competition concerns. 

Firstmac’s latest move also follows the completion of a $1-billion residential mortgage-backed securities raising to fund its home lending business. 

Mr Cannon said Firstmac’s “forward-looking” strategy would help it manage market headwinds, adding that the group has learned from its experiences during the global financial crisis.

“Our 41 years of experience has helped us to manage our way through many crises before. And COVID-19, while unique, is nothing we can’t conquer because of our strong business,” Mr Cannon said.

“We are using this time to redeploy our staff onto new projects, invest in the future and rebuild our company to face the challenges of the post-COVID-19 economy.”

[Related: Referral relationships key amid COVID-19: Tom Panos]