A non-bank mortgage lender has unpacked its full year financial results for the period ended 30 June 2020, attributing the strong outcome to a number of factors driven by both the organisation itself, as well as larger movements occurring across the lending landscape.
Resimac reported a normalised NPAT of $55.7m, up 79% on the year prior, and a statutory NPAT of $56.0m which was up 19% year on year.
CEO Scott McWilliam said the group is proud of having posted another “record profit”, underpinned by home loan settlements of $4.7bn, up 30% on the year prior.
At the end of the period, the group’s home loan portfolio rested at $12.4bn, up 21% from the year before.
“Our portfolio growth is testament to our focus on consistent and timely credit decisioning, with our overall service offering resonating well with both brokers and consumers alike,” McWilliam said.
“We’ve focused on improving our process and digitally automating it where it makes sense, but it’s also obviously about providing competitive pricing and a broad suite of products.”
Additionally, McWilliam acknowledged that customers are more willing than ever before to transact away from the majors with “alternate, well-established brands like Resimac”.
Over the year, the group also continued to strengthen its funding capabilities with successful diversification of banking and warehouse facilities.
While the economic uncertainty brought on by COVID-19 is expected to last for some time, McWilliam reiterated Resimac remains committed to supporting its customers.
“The broker community has supported the Resimac brand for a number of years, and we’re here to support their customers during good times, but also during challenging times,” he said.
"As an organisation, we’re extremely proud of the amount of support we’ve provided brokers through flexibility, such as in relation to the information we require up front to help them get comfortable taking out financing in this environment actually is the right decision, but we’re just as proud of the support we’ve provided to our existing book, and will continue to provide on a case by case basis.”
As of 31 July 2020, 7% of Resimac customers were in active repayment deferrals, with the number forecasted to “materially decrease” at completion of the six-month deferral period.
“The historical performance of our portfolio and long-standing funding relationships, provide a strong base to navigate the current economic environment and position the group for future growth,” said McWilliam.
“Our investment in digital transformation continues, as we build a platform for sustainable and scalable growth. Our core system upgrade has commenced with expected completion in FY22, positively transforming the Resimac consumer and broker experience.”