RHG announces half year profit result

Staff Reporter Wednesday, 27 Feb 2008 1 minute read

RHG Limited yesterday announced a half year profit of $22.6 million. Consolidated profit after income tax for the group was $113.8 million, which included a profit of $103.3 million after tax from last year’s sale of the RAMS brand and origination business to Westpac.

RHG chief executive Glenn Goddard said RHG’s mortgages continued to perform in line with expectations, with arrears in line with market peers.

He also said RHG had repaid its $6.17 billion extendible commercial program in full.

“RHG has $8.6 billion of warehouse facilities due to roll this calendar year. While RHG has commercial expectations that these will be rolled, there remains uncertainty in the market,” Mr Goddard said.

Mr Goddard said the RHG Board would not be declaring a dividend for the period with the $13.4 billion mortgage book now closed and in run-off.

“RHG will continue to manage and service its mortgage book and the profits of the business will reduce over time in line with that rundown,” Mr Goddard said.

“After meeting liabilities, the directors’ future intention is to return all excess cash generated in wind down to shareholders.”

Published: 27-02-08