Non-bank records big growth in branded mortgages

by Julia Corderoy26 Feb 2016
ASX-listed non-bank lender, Homeloans Limited, has recorded significant growth in its own-branded home loans over the first half of FY2016.

According to its half year results, Homeloans-branded (managed) settlements reached $612 million, up 23.1% on the first half of FY2015. Non-branded (non-managed) settlements declined by 4.2% compared to the same period in FY2015.

Total mortgage settlements reached $978 million over the six months ending December 2015, up 11.3% from the prior corresponding period. 

“We are pleased with the level of settlements growth and profit uplift, which has again allowed us to declare a dividend for shareholders. With so many lenders adopting pricing and policy changes for particular mortgage products, our diversified funding base has allowed us to capitalise on these changes,” Homeloans’ CEO, Scott McWilliam said.

The lender recorded net profit after tax of $2.9 million, up 10.7%, and delivered an interim dividend of 2 cents per share.

McWilliam says enhancing brand recognition continues to be integral to Homeloans’ marketing plan. 

“Our sponsorship of the Perth Scorchers has significantly enhanced our brand recognition with third party broker partners and their customers and we are pleased with the level of national coverage this relationship has again provided,” he said.

Looking ahead, McWilliam says Homeloans has a major priority to grow and diversify the business with a focus on further enhancing product and service offerings across the lender’s third-party broker partners and direct retail networks.