Leading non-bank lender Homeloans Limited lifted its branded loan settlements by 17.7% over FY2016.
According to the non-banks full year results, released yesterday, branded loan settlements increased by $177 million in the year ending June 2016, reaching a total of $1.2 billion.
Non-branded loan settlements, on the other hand, fell to $670 million over the year, a drop of 15.6%. Total home loan settlements over the year were up 3%, to $1.8 billion.
This brought total loans under management at the end of FY2016 to $4 billion, an increase of 3.6%.
“We are pleased with settlements growth of 17.7% achieved in the year and see the positive trends in submission and settlement activity continuing into FY2017,” Homeloans’ CEO, Scott McWilliam said.
“This is due to our success in building our east coast presence as demand softens in some key markets such as WA. In addition, recent cash rate movements and ongoing historical low levels of interest rates will support further positive momentum in settlements in the year ahead.”
McWilliam said the recent announcement of a merger with other leading non-bank lender, Resimac
, will also boost further growth in FY2017.
“In line with our previously stated strategy of actively pursuing both organic and inorganic growth opportunities, the proposed merger with Resimac represents an ideal opportunity for shareholders to benefit from an enlarged and more diversified combined business.”
On 20 July, Homeloans Limited announced it had entered into a Scheme Implementation Agreement
with Resimac, under which Homeloans will merge with Resimac through the issue of new Homeloans shares to Resimac shareholders and the acquisition by Homeloans of all of the shares in Resimac.