Bank-aggregator reveals post-merger plans

Goldfields Money has released an updated report of its full-year 2018 financial results (FY18) — the year to 30 June — to incorporate operating changes brought about following its merger with mortgage aggregator Finsure.    

The updated report has revealed that the merged group posted an underlying pro forma net profit after tax (NPAT) of $6.7 million, compared to the $407,000 loss reported by Goldfields in August.

Goldfields has also reported that the merged entities have posted cumulative growth in managed loan settlements of 49 per cent to $432 million in FY18, and combined growth in aggregation loan settlements of 19 per cent to $12 billion.

The group reported a combined loan book that totalled $31.8 billion as of 30 June 2018, up by 27 per cent.

Further, Goldfields has noted that the newly merged group reported 170 per cent managed loan growth in July to $72 million, with aggregation loan settlements also increasing in July, rising by 31 per cent to $1.2 billion.

Speaking to Mortgage Business, executive director and CEO of Goldfields Money Simon Lyons said that the bank’s merger with Finsure would allow it to expand its presence in the marketplace by accessing Finsure’s network of approximately 1,500 loan writers.

“Coming together with Finsure gives us access for our products onto their platform, which means that the Finsure brokers will be able to market Goldfields Money products to their customer base and allows us to work with the Finsure wholesale banking division, which is a white label product that Finsure put to the market under the Better Choice Home Loans brand,” the CEO said.

“What it does is it gives Finsure brokers access to what we consider to be world-class products, and it also gives us access to [Finsure’s customers] with an ability to potentially have them join us for a deposit product and other such products.”

Mr Lyons noted that the group has no plans to change its aggregation business model, but he stated that the group is looking to develop its “on-balance sheet” loan book, which he described as “microscopic” in comparison to its “off-balance sheet” aggregation business.

“The aggregation business continues, and we do not expect there to be any changes to the way that we market other lenders’ products through the Finsure aggregation team, so that will continue,” the CEO said.

“[Finsure’s aggregation business] is currently writing $1.1 million to $1.2 billion a month in settlements, so really no change to that.

“The amount of loans that are going to be written on-balance sheet versus off-balance sheet is microscopic in the mix. You’re talking about volumes of circa $20 million a month being written on-balance sheets with all the other funding sources that we’ve got filling the gap elsewhere.” 

Mr Lyons continued: “We’re looking to grow the on-balance sheet position of the Goldfields business, and to grow our loan book in that regard.”

The Goldfields CEO added that the bank also plans to offer “different styles of deposit products” to “reduce the cost of funding”.

Mr Lyons also stated that Goldfields would continue to focus on “prime lending” to borrowers “across the board”, claiming that the bank doesn’t have the “same limits that other larger banks have had in the past with regards to investor and interest-only loans.

Shareholders happy — except Firstmac

Moreover, Mr Lyons told Mortgage Business that he’s received positive feedback from shareholders following Goldfields’ merger with Finsure, who he said are “looking forward to seeing what we can do in the marketplace”.  

However, Mr Lyons said that one of its major shareholders, non-bank lender Firstmac, has been “actively selling” its stake in Goldfields after its takeover offer fell through.

Firstmac has since announced its takeover bid for Queensland-based lender Maleny Credit Union worth approximately $7 million.

[Related: Treasurer approves bank-aggregator merger]