Non-bank posts 34.78% growth in third party originations

A non-bank lender has witnessed 34.78% growth in third party originations, alongside year on year loan book growth of 30.3%, taking its total loan settlement value to $3.6bn in FY18, an increase 19.4%.

Homeloans Limited (ASX: HOM) attributes the results to “above-system sales growth, a market-leading funding program, outstanding book quality and improved cost discipline”.

A statement from the lender continued, “Homeloans continues to bolster its third-party broker and direct channels, and the results of this approach are evident in the strong settlements growth.”

Speaking to Australian Broker, Daniel Carde, GM of third party distribution said, “Our year on year growth in third party can be attributed to a number of factors. Firstly, we have seen mainstream lenders exercising more conservative lending policies and offering reduced product flexibility. Secondly, as the mortgage lending landscape becomes more and more difficult for the consumer to navigate, the mortgage broker proposition becomes stronger.”

In the last financial year, Homeloans’ total settlements reached values of $4.3bn, up 19.4% on FY2017 and its principally-funded loan book reached $8.6 billion, an increase of 30.3% on 30 June 2017. Meanwhile, third party originations, which totaled $2.3bn in the last financial year, were valued at $1.5bn H1 FY18 and $1.6bn in H2, to total $3.1bn for the full year.

Net profit after tax (NPAT) on a normalised basis reached $26.2 million, up 40.1% on FY2017 and NPAT on a statutory basis reached $25.3 million, up 60.1% on FY2017.

The results encompass the first full reporting year since the complete integration of Homeloans and RESIMAC.

Homeloans has said it will continue to focus on “enhancing efficiencies and bolstering its customer-focused distribution capability”, with a particular focus on third-party broker and direct channels.

Carde added, “With our broad product offering, covering both prime and non-prime borrowers, as well as access to over 85% of the mortgage brokers operating in Australia, we are well positioned to capitalise on the opportunity that this has created.”