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BNK posts quarterly growth ahead of strategic review update

The financial services group – which is set to complete its sale of aggregation arm Finsure – saw loan settlements increase 21 per cent to $268 million in the second quarter of financial year 2022.

BNK Banking Corporation Limited (BNK) has announced that it settled $268 million of loans in the second quarter of financial year 2022 (Q2FY22), a 21 per cent rise on the previous quarter and 167 per cent up year-on-year.

The largest proportion ($96 million) was funded through its specialist warehouse, with $74 million funded through the bank, $56 million via its white-label offering and $42 million through the prime warehouse.

Allan Savins, interim chief executive – banking and wholesale, noted that settlements of specialist loans were a key area of growth.

“Our alliance with Goldman Sachs reached $96 million [in the second quarter] up from $12 million in the previous quarter,” Mr Savins said.

The group reported its on-balance sheet lending book grew to $631 million, a rise of 107 per cent from the previous year.

Meanwhile its prime warehouse portfolio, announced last year, increased to $108 million in the second quarter, up from $70 million the previous quarter with settlements reaching $42 million. 

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Its total lending portfolio is now at $2.54 billion.

The recent growth comes after BNK entered into a share sale agreement to sell 100 per cent of Finsure for approximately $152 million in cash.

“Following the sale of Finsure, BNK will be well capitalised to continue to execute our strategy and strengthen our competitive position,” Mr Savins said.

The sale is expected to be complete on 7 February 2022.

Mr Savins said: “The board of BNK is making progress in evaluating a range of capital management options to utilise these proceeds efficiently, and it is still anticipated that a material portion of these funds will be distributed to shareholders.”

He said the remaining balance of funds was expected to be invested in further lending growth, infrastructure, and resources.

Mr Savins concluded by suggesting that further changes could be imminent: [W]e are continuing to assess options in respect to BNK as part of the strategic review.

I look forward to providing additional updates on the strategic review in due course.

[Related: BNK Group signs first RMBS program]

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