Powered by MOMENTUM MEDIA
subscribe to our newsletter

Bank winds up LMI business

A listed Australian bank has announced it will wind up its LMI subsidiary to strengthen its capital position.

Auswide Bank Ltd announced today the effective date of 30 September 2015 to wind up its captive lenders mortgage insurance subsidiary, Mortgage Risk Management Pty Ltd (MRM).

The action will free up approximately $10 million Tier 1 capital and result in Auswide Bank being in a position of regulatory capital strength, exceeding 15 per cent.

Auswide managing director Martin Barrett said the capital return puts Auswide Bank in an enviable position allowing for ongoing lending growth in housing, consumer and business finance.

The action will provide the lender with added strength to consider acquisition opportunities and allow the board ability to consider a special dividend in due course, Mr Barrett said.

Advertisement
Advertisement

PROMOTED CONTENT


An ASX trading update today noted that the risk profile for Mortgage Risk Management continues to improve.

“Provisioning strong and will be transferred to Auswide Bank allowing for a healthy provision buffer against unexpected write offs,” it said.

Auswide Bank committed a large part of the MRM portfolio to QBE LMI in 2012 and QBE have continued to provide cover since.

Bank winds up LMI business
mortgagebusiness

Latest News

The major bank has once again extended its cashback and drawdown deadlines. ...

The major bank has expanded its SME Recovery Loan Scheme offer to small businesses impacted by the pandemic, effective 1 October. ...

CoreLogic has reported that the preliminary clearance rate recorded across the capital cities last week was the highest since late March 202...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

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