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Mortgage provider tips 90% broker flow following merger

by James Mitchell4 minute read

An ASX-listed non-bank lender has posted strong growth in mortgage settlements across its various distribution channels over the six months to 31 December.

In a trading update this week, Homeloans Limited posted a net profit after tax (NPAT) of $5.6 million, representing six months of RESIMAC’s results and two-and-a-half months of Homeloans results from 13 October 2016.

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Prior to the merger, which was completed in October 2016, and before restructure costs, Homeloans delivered a normalised NPAT of $8.2 million over the period.

The group’s principally funded loan book (valued at $5.8 billion at 31 December), combined with the Homeloans white-label managed book, represents a total book value of $9.4 billion, up 10 per cent over the period.

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The group’s broker-originated loan book was $4.1 billion at 31 December.

“We are pleased that settlement growth across our proprietary lending, third party lending and direct channels has remained buoyant in the period and throughout the merger,” Homeloans CEO Scott McWilliam said.

“The two organisations have come together, and are well placed to capitalise on the opportunities in the market to further grow our settlements, our assets under management and ultimately grow our bottom line.”

In its outlook for 2017, the group noted that settlement volumes are expected to be supported in the remainder of the year by the new business flowing from the increased access to the third-party broker market “to up to 90 per cent on a market share basis”, plus loan growth from its other channels.

Total settlements grew by 9.8 per cent over the half.

[Related: Lender sees surge in broker business ahead of merger]

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James Mitchell

James Mitchell

AUTHOR

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

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