Powered by MOMENTUM MEDIA
subscribe to our newsletter
Acquisition to boost branded loans for non-bank

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

APRA’s proposal to loosen serviceability measures could reignite the credit boom, Moody’s has said, amid growing expectations that the m...

The median time on market for a residential dwelling has almost doubled, reflecting subdued demand for housing amid falling property prices,...

NAB and Westpac are among the 56 banks to endorse the United Nations’ Principles for Responsible Banking that will be launched in Septembe...

FROM THE WEB
podcast

LATEST PODCAST: How the mortgage sector will be impacted by the federal election

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

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