Powered by MOMENTUM MEDIA
subscribe to our newsletter

Pepper sees record surge in mortgage originations

Pepper Group has experienced record loan originations and a 27 per cent increase in lending income over 2015.

In a recent trading update, the global mortgage provider announced an adjusted NPAT of $48.6 million for the 2015 calendar year, up 38 per cent.

Pepper grew lending assets under management (AUM) by 34 per cent to $5.6 billion in 2015, delivering income of $105.9 million, up 27 per cent on the previous year.

The non-bank lender achieved strong organic growth in Australian residential mortgages during the calendar year, launching its first direct-to-consumer campaign in Australia, while building brand awareness and supplementing its established broker and white label distribution channels.

Pepper’s Australian mortgage settlements increased by 36 per cent in 2015, with broker-originated loans up 37 per cent, direct-to-consumer up 57 per cent and white label up 30 per cent.

Advertisement
Advertisement

The group also recorded a strong improvement in delinquency rates in the second half. In its investor presentation, Pepper noted that it ceased lending in large mining areas 18 months ago.

Pepper co-group CEO Mike Culhane said Pepper experienced “record loan originations” in 2015, supported by increasing penetration of national broker networks, white-label partnerships and further investment in its direct-to-consumer channel.

“International consumer lending performed strongly in both Spain and South Korea,” Mr Culhane noted.

“We also expect a further ramp up of our recently-established lending businesses in the UK and Ireland into 2016.”

Pepper co-chief executive Patrick Tuttle highlighted that over the past five years the team has grown assets under management at a compound annual growth rate of 126 per cent.

PROMOTED CONTENT


“Our business continues to grow strongly across its core lines including residential mortgages, consumer lending and loan servicing. With income diversified across capabilities, asset classes and geographies, Pepper is able to pursue growth opportunities through the credit cycle,” Mr Tuttle said.

[Related: Pepper announces first profit result since float]

Pepper sees record surge in mortgage originations
mortgagebusiness

Latest News

Property sale settlements hit a two-year high across the country in December 2020 and surged in Victoria, driven by the easing of COVID-19 r...

Fintechs, including UK-based Monzo Bank, could face the same fate as Xinja unless they create a sustainable future, GlobalData has warned. ...

Property analysts believe that the RBA’s forecasted 30 per cent growth in property prices over the next three years will materialise in 7...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Turnaround time blowouts

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

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