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Aggregator settlements up 42%

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Malavika Santhebennur 6 minute read

Finsure has reported growth in settlements and its loan book for FY21, while its broker numbers have exceeded 2,000.

BNK Banking Corp has released its financial results for the year ended 30 June 2021, with its aggregation division Finsure recording a 42 per cent year-on-year increase in loan settlements to $22.20 billion.

Finsure reported record settlement months in December 2020 of $2 billion, $2.04 billion in April 2021, $2.24 billion in May 2021, and $2.82 billion in June 2021.

The aggregation group’s six-month settlements were up 48 per cent year-on-year to $12.20 billion.

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Its loan book increased by 24.5 per cent year-on-year to total $56.6 billion year-to-date to June 2021, up from $50.20 billion in the 2020 calendar year and $45.10 billion in the 2019 calendar year.

Finsure’s broker network grew 15.2 per cent year-on-year to over 2,000 brokers year-to-date to June 2021.

Underlying net profit after tax (NPAT) was up 43 per cent year-on-year in FY21 to $9.60 million.

Commenting on the results, Finsure CEO, aggregation John Kolenda said: “Once again Finsure has demonstrated the breadth and scale of our business with a strong operating result.”

He added that the loan book growth has reflected the “strength of our broker network” and service offering.

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BNK loan book up 75% in FY21

At the same time, BNK Bank has reported a 44 per cent hike in underlying NPAT to $7.1 million, while cash NPAT was up 47 per cent to $2.1 million, and statutory NPAT was at $5.7 million in FY21, compared with $3.8 million for the prior year on a restated basis.

The BNK-funded loan book grew by 75.3 per cent in FY21 to $499 million while its deposit book grew by 84 per cent to $636 million.

The non-major bank increased its share of owner-occupied loans in its portfolio from 45.6 per cent in FY20 to 60.5 per cent in FY21, while investor lending was down from 54.4 per cent in FY20 to 39.5 per cent in FY21.

It increased the proportion of residential loans from 93.1 per cent in FY20 to 97.2 per cent in FY21, while reducing commercial loans from 6.6 per cent in FY20 to 2.7 per cent in FY21.

The non-major bank also reported that it is making progress in transforming its lending business by using less white label funding and accelerating on-balance lending.

On-balance sheet lending increased from 10 per cent in FY20 to 20 per cent in FY21, while white label-funded loans decreased from 90 per cent in FY20 to 80 per cent in FY21.

Commenting on the lender’s results and strategy, BNK Bank CEO banking and wholesale Brett Morgan said: “BNK Bank has strengthened its competitive position over the year. We have accelerated our higher margin on-balance sheet lending, and we have also launched our first prime warehouse securitisation program to provide further funding diversity to support our growth ambitions.

“We have made significant progress on transforming our lending business to generate higher returns over the medium term.”

Earlier this year, BNK partnered with Bendigo and Adelaide Bank and Blackstone to establish its first warehouse and securitisation program – a $250-million prime residential mortgage warehouse program.

In addition, Better Choice Home Loans, which is a part of BNK, recently pivoted to become a non-bank after announcing a $500-million residential mortgage warehouse facility with Goldman Sachs.

Better Choice executive director Allan Savins said that having its own funding through the facility would provide it with greater control over pricing and product design.

BNK has also reported in its financial results that it has remained in a strong capital position, with the group’s capital adequacy ratio of 22 per cent at 30 June 2021 providing the lender with further growth opportunity for on-balance sheet lending assets and investing in growth.

The bank closed a $13-million equity raising in May to support loan book growth and boost working capital, as well as its inaugural $10-million tier 2 subordinated notes issue.

[Related: BOQ records broker loan growth]

Aggregator settlements up 42%
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Malavika Santhebennur

Malavika Santhebennur

Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.

Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.

 

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