Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
subscribe to our newsletter

Acquisition to boost branded loans for non-bank

One of Australia’s largest non-bank lenders has recorded a surge in branded home loan settlements over the six months to 31 December 2014.

Homeloans Limited increased its branded loan settlements by 11.5 per cent to $487 million for the second half of 2014.

The group’s branded loans under management increased 2.3 per cent to $3.1 billion at 31 December 2014 while the non-branded loan portfolio reduced slightly to $4.3 billion, with the total portfolio remaining steady at $7.6 billion.

Advertisement
Advertisement

Homeloans’ CEO Scott McWilliam said the company continues to pursue the expansion of its broker and direct retail distribution footprint.

“Our recently announced acquisition of Barnes Home Loans (Barnes Mortgage Management Pty Ltd) is an example of how we are successfully implementing this strategy to grow settlement volumes, particularly of our own branded loan products,” Mr McWilliam said.

He noted that the result was positive given intense competition in the market and relatively high levels of refinance activities being undertaken by borrowers seeking to take advantage of historically low interest rates.

“To date in HY2015, we have continued to focus on growing lending volumes and building on the positive momentum from the second half of FY2014,” Mr McWilliam said.

“We were especially buoyed by strong settlements in the pre-Christmas period of 2014. However, market pressures continue to impact on margins, which, in turn, has marginally reduced profit levels compared to previous periods,” he said.

“With the broader residential lending market remaining stable in HY2015, the reduction in cash rates in February 2015 will likely assist in supporting settlement volumes for the remainder of the financial year.”

Mr McWilliam said the lender is particularly pleased to have grown settlements through the broker and retail channels by 13 per cent and 6 per cent respectively during the six months to 31 December 2014.

Stronger settlements volume in the December quarter of 2014 would indicate current market conditions will continue into the current first half of 2015, he said.

 

Acquisition to boost branded loans for non-bank
mortgagebusiness

Latest News

The corporate regulator has confirmed that responsible lending obligations are not a barrier to making variations from P&I to IO terms i...

The non-major has continued to recover lost ground in the home lending space. However, a rise in interest income has not been enough to prev...

Expectations of a “significant economic shock” in the first half of 2020 have prompted both Fitch Ratings and S&P to downgrade Austr...

FROM THE WEB
podcast

LATEST PODCAST: Managing the influx of COVID-19-related loans

Do you expect COVID-19 to reduce or increase your business flows?

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of Mortgage Business.

Read more

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.