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Resimac reports drop in payment deferrals

The non-bank lender has reported a significant decline in the number of customers on loan payment deferrals, and a slight rise in home loan AUM.

Resimac has published a trading update (unaudited) for the first half of the 2021 financial year (1H21), posting a normalised net profit after tax (NPAT) guidance in the range of $48 million to $53 million.

The lender said this reflected low 30-day bank bill swap rate resets, “disciplined” cost control, and assets under management (AUM) growth.

Home loan settlements from July to October sat at $1.4 billion, with prime mortgage products driving the majority of the settlements, representing around 65 per cent of the settlements, while specialist products comprised around 35 per cent of settlements.

Resimac’s home loan AUM as at 31 October was $12.7 billion, up from $12.4 billion at 30 June.

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The lender also reported a decrease in the number of customers on loan payment deferrals, which were issued in response to the economic impacts of the coronavirus pandemic, with around 4.4 per cent on deferrals at 31 October.

This has reduced from 10 per cent as at 30 June.

The group reported that it is unlikely to increase the COVID-19 collective provision overlay from 30 June of $16.4 million.

Resimac published its full-year results for FY20 in August, in which it posted NPAT of $55.7 million, up 79 per cent from $31.5 million in FY19.

The result was driven by strong home lending growth, with settlements up 30 per cent year-on-year to $4.7 billion.

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[Related: Resimac slashes mortgage rates]

Resimac reports drop in payment deferrals
Resimac reports drop in payment deferrals
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Malavika Santhebennur

Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.

Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.

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