A non-bank mortgage provider has reported “significantly above system” home loan portfolio growth over the first half of FY20.
Resimac Group announced a normalised net profit of $26.9m for the six months to 31 December 2019, up 85% on the previous corresponding period.
CEO Scott McWilliam attributed the group’s successful result in large part to its investment in process improvement and digital automation.
“Profit growth was driven by strong home loan portfolio growth of 20% to $11.3 billion,” he said.
“The cost to income ratio decreased significantly to 42.1%, despite commencing investment in our digital and technology transformation project.”
McWilliam also linked the strong figures to the continued trend of consumers gravitating away from the big four Australian banks and pursuing loans elsewhere via the broker channel.
Resimac originated a record $2.4b of home loans in 1H20.
Over the period, the group strengthened its funding capabilities through diversification of banking and warehouse facilities and the expansion of its US investor base; it also issued three public RMBS deals totaling $2.5bn over the half.
Looking ahead, Resimace plans to continue investing in its “digital transformation” in order to build a platform that will support long-term and sustainable growth.
“We expect to commence our core system upgrade in the second half, positively transforming the Resimac consumer and broker experience,” said McWilliam.
The CEO sees reason for the group's growth trajectory to hold strong.
“The Australian housing market remains resilient with a strong rebound over the last six months. While Resimac recorded its highest settlements in 1H20, we represent less than 2% of the home loan market,” he said.
“A huge opportunity exists to grow market share via our third party and digital direct channels.”