Non-bank lender Homeloans Group has released its annual financial results, reporting a total third party broker loan book of $4bn and an increase in both originations and overall mortgage portfolio.
The results were announced yesterday (28 August) for the combined businesses of both Homeloans and RESIMAC which merged on 13 October last year. Highlights included total settlements of $3.6bn for the 2017 financial year, an increase of 20.0% from the $3.0bn recorded in the year before.
Of these originations, $2.7bn were prime mortgages while $0.9bn were non-prime. Within the prime portfolio, 61% of mortgages were owner occupied while 39% were investor. These percentages were similar within the specialist portfolio recording 64% and 36% respectively.
Total assets under management also grew 14.6% from $8.9bn to $10.2bn across both businesses. This includes $6.6bn of principally funded loans and advances – an increase of 22.2% – as well as $3.6bn of non-principally funded loans.
The company expects settlements to grow dependent on the third party channel with 85% of brokers having access to the firm’s lending products. This growth will be supplemented by growth from Homeloans’ direct-to consumer digital channels.
The lender announced a normalised net profit after tax of $18.7m prior to the $4.3m in costs related to the RESIMAC merger and acquisition.
With the integration of the two firms fully completed in the first half of FY17, the company’s net profit after tax sits at $15.8m for the entire financial year. This represents 12 months of RESIMAC’s results and 8.5 months of Homeloans’ results from the date of acquisition.
“This is a solid result, reflecting the strong merits of the merger, favourable market conditions and the company’s ability to execute on its growth strategy,” said Homeloans’ joint CEO Scott McWilliam.
“Homeloans is in a strong position because of our ability to be flexible and adaptable, and that has helped us cement our position as a lender of choice, particularly in the third party broker market.”
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