A leading Australian lender has reported adjusted net profit after tax (NPAT) of $16.7 million, driven by higher than forecast new residential mortgage lending volume in its first results announcement after listing on the ASX.
In its half year results to June 2015, non-bank lender Pepper reported pro forma NPAT of $14.9 million and statutory NPAT of $3.8 million. Adjusted NPAT was $16.7 million in line with expectations.
As flagged in Pepper’s prospectus, management expects adjusted NPAT will be weighted towards the second half of 2015, reflecting seasonality in the Australian mortgage market resulting in higher 2H15 non-conforming and prime residential mortgage origination volumes.
Pepper Group CEO Patrick Tuttle strong organic growth in Australian residential mortgages, driven by continuing expansion of Pepper’s broker, white-label and direct-to-consumer distribution channels were behind the pleasing results.
“Australian residential lending volumes are slightly ahead of expectations on a year to date basis. Underpinning this growth is our increasing penetration of national broker networks, further white-label partnerships and the continuing emergence of our direct-to-consumer channel,” he said.
Looking ahead, Tuttle sees continued loan servicing and lending opportunities as traditional banks withdraw to core lending markets.
“The Pepper team remains focussed on our strategy to continue to deliver disciplined growth across all of our Australian and International lending business, delivering strong risk-adjusted returns from lending segments typically underserved by banks and other traditional lenders in each of the markets in which we operate.”