YBR loan settlements fall, cash deficit narrows

Yellow Brick Broad (YBR) has announced its financial results for the second quarter of the 2019 financial year (2Q19), reporting a 3 per cent decline in its home loan settlements, representing a $100 million fall, from $3.2 billion in 1Q19 to $3.1 billion in 2Q19.

The group’s underlying loan book thickened by 1 per cent, rising from $48.5 billion to $48.9 billion.

However, despite the slip in loan settlements, YBR has further narrowed its cash deficit, which decreased from $330,000 in 1Q19 to $40,000 in 2Q19.

YBR’s deficit has decreased by $660,000 since posting a loss of $700,000 in its full-year results for the 2018 financial year (FY18).

The reduction in the group’s cash deficit was driven by a decline in YBR’s total cash outflows, which fell by 3 per cent to $8.4 million.

However, YBR’s total funds under management decreased by 4 per cent, from $980 million to $940 million.

The group is currently in the process of revamping its offering, with YBR chairman Mark Bouris announcing to shareholders the group’s intention to “meet emerging areas of demand” in the lending market by diversifying its product offering.

Mr Bouris said that YBR aims to venture into the commercial lending space, equipment finance and small business lending.

The chairman also made reference to the group’s mortgage securitisation program, which Mr Bouris previously said would be a “key value-enhancing component in YBR’s overall mortgage strategy”.

YBR has also made a raft of changes to its leadership team, including the appointment of Frank Ganis as the group’s CEO.

[Related: New mortgage strategy ‘key’ to YBR growth]