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Second tier lenders return to the fore

by Staff Reporter7 minute read

The majors are not the only banks to post strong first half year results, with Heritage Building Society posting a before tax profit of $22.89 million for the period ending 31 December 2009.

The second tier lender’s chairman Brian Carter said the building society’s overall performance for the period was very pleasing given the prevailing economic conditions.

Mr Carter said Heritage had continued to respond effectively to external market factors including intense competition for retail deposits, increasing funding costs, as well as the recent announcement by the federal government to withdraw the wholesale funding guarantee.

“Loan arrears greater than 30 days represented only 0.21 per cent of our total mortgage portfolio balance as at 31 December 2009. This result is substantially better than industry benchmarks and in the economic conditions Heritage continues to show the benefits of sustaining our high quality loan book,” he said.

But despite the positive results, Heritage was last week forced to axe a number of aggregation groups.

The aggregation groups were contacted by the building society in late January informing them that they would no longer have access to the lender’s products.

Heritage's general manager retail services Paul Francis said the building society was streamlining its broker partner relationships to "ensure sustainable growth into the future".

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