Group’s profit up 86% thanks to brokers

by Madison Utley29 Aug 2019

A non-bank lender has not only attributed its above system growth in fiscal year 2019 to customers’ preference for the broker channel, but linked it to the growth of the non-bank market share as a whole.

Resimac yesterday announced a normalised net profit of $31.1m for the year ending 30 June, up 19% from the prior year, and a statutory NPAT of $47.2m, up 86% year on year.  

To further the trends established in FY2019, CEO Scott McWilliam said Resimac plans to develop “a market leading broker service proposition” with a strong emphasis on education.

“We’re a broad mortgage lender. We play heavily in the prime space, but we also play in the near prime and specialist space. As it’s a broad set of products, education is important,” McWilliam explained.

“We’d like to be a one stop shop when it comes to mortgage originations, and we’re close to that.”

“It’s in the simplification of the process: there’s one application form, you have one BDM, there is one level of expectation. That simplification allows us to have a more meaningful relationship with the broker.”

Resimac also recently acquired 15% of Adelaide-based fintech Positive Group, which specialises in asset finance solutions for consumers, mortgage brokers and small businesses. The partnership supports two of Resimac’s “strategic priorities.”

“It’s allowed us to broaden our network and our knowledge, as well as indicated to the market we’d like to diversify our asset classes more broadly, and offer products outside of mortgages,” explained McWilliam.

“It also reflects our desire to invest in technology and to digitalise the business, where it makes sense.”

Looking ahead, the lender expects to see continued and steady growth in the non-bank sector.

“Consumers today are willing and wanting to deal with brands that aren’t necessarily household names as they look to move from a transaction to a true partnership with a product provider,” McWilliam said.

“Further, borrowers today are not necessarily wanting to have all their financial products with one brand, creating a further opportunity for the non-bank sector to take a larger part of the mortgage market.”