Non-bank posts strong growth following merger

The group’s normalised NPAT of $12.9 million — up by 57.3 per cent over the period — was supported by 18.1 per cent growth in Assets Under Management (AUM) and ongoing growth in loan settlements across all distribution channels.

“The principally funded loan book was $7.6 billion at 31 December 2017. Loan book growth of 31.0 per cent on the pcp is attributable to the positive impact of the merger and supportive market conditions in the non-bank sector,” the group said. “Net interest income for the first half rose by 26.6 per cent to $51.0 million on the pcp.”

Homeloans joint CEO Scott McWilliam said that the strong result reinforces the success of the non-bank’s post-merger focus.

“That is, growing the loan book by expanding our distribution networks and enhancing our customer experience and service proposition,” the CEO said.

“Assets continue to grow ahead of market, supported by strong principally funded volumes through our broker and direct channels. We stand apart from the majors because of our ability to provide a wide range of products to suit a broad range of borrower needs.”

The RESIMAC global funding platform provided further support to the group’s principally funded lending activities throughout the first half. The strong banking relationships and warehouse commitments were aided by increased offerings from RESIMAC’s capital markets programs, with three public RMBS deals raising $1.7 billion (AUD equivalent) during the half.

“The business has experienced a strong first half and we are well placed to grow further, taking advantage of our mature and diverse funding program,” Homeloans joint CEO Mary Ploughman said.

“The underlying quality of our loan portfolios and excellent call history on our transactions continue to support our issuance in the wholesale markets. We are excited by the future prospects on both the origination and funding sides of our business.”