A non-bank residential mortgage lender has posted a 13% increase in net profit in its half year financial results, with its CEO highlighting the role brokers played in the figures.
Resimac Group announced a normalised net profit of $14.5m for the latter six months of 2018, up 13% from the previous corresponding half. The organisation attributes its success to both growing its loan portfolio as well as its ongoing improvements centered on bettering customer experience.
In the same statement, CEO Scott McWilliam made clear his support of mortgage brokers in light of the ongoing effects being felt from the royal commission.
“We will continue to be an active supporter of the broker channel via the MFAA campaign and other avenues,” he said, stressing his commitment to “work with the industry to ensure that consumer choice remains a priority.”
Expenses remained broadly flat as profit swelled in the second half of 2018, greatly reducing the cost-to-income ratio.
McWilliam said, “The recent automation of workflow management will also help to achieve further efficiencies but most importantly, enhance our customer proposition.”
Despite national trends, the group’s arrears continually come in well below the S&P prime delinquency index.
Investments in the future of the group included new warehouse lines of credit established with Asian banks UOB (Singapore) and MUFG (Japan). These partnerships serve to supplement Resimac’s short-term funding capability and set the stage for further Asian bond distribution.