Non-bank lender sees jump in settlements, broker loans

by Julia Corderoy26 Aug 2014
Major non-bank lender, Homeloans increased its own brand loan settlements by 13.2% in the year to June, despite its normalised net profit after tax decreasing 6% to $6.3 million in the financial year.

Homeloans’ CEO, Scott McWilliam said the result is pleasing considering the market pressures and competition.

“This is a solid result, particularly in light of intense competition in the market, not least being discounting by the major banks…

“Year-on-year, we always focus on growing lending volumes and this year was no exception. We were especially buoyed by strong settlements in the second half of FY2014. However, continued market pressures impacted on margins, which, in turn, caused slightly reduced profit levels compared to FY2013,” McWilliam said.

Settlements through the lender’s broker channel increased by 12% in the year, while direct-retail customer settlements increased by 17%.

Ray Hair, Homeloans’ general manager national sales told Australian Broker the lender will continue to invest in its important third-party channel.

“Third party brokers are a vital part of Homeloans’ business. Over the next 12 months we will continue to invest in a range of elements to improve the experience of third party brokers when dealing with Homeloans. This includes investment in new technology, not to mention more support staff, credit staff and BDMs.”