YBR sees double-digit loan book growth

Yellow Brick Road (YBR) has credited increased media investment for the group’s significant growth in its mortgage book, settlement volumes and loan pipeline.

According to a report issued to shareholders, YBR’s mortgage book was worth $35.1 billion at the end of the third quarter of 2015-16 – up 32 per cent on the same quarter in 2014-15.

Loan settlements were at $3.9 billion during the quarter – an increase of 27 per cent on the prior corresponding period – with the growth in its mortgage aggregation business, Vow Financial, “well ahead of the industry” and a key driver of YBR’s double-digit rise in settlements.

YBR said a substantial increase in the group’s media investment drove a 102 per cent rise in the number of leads generated and a 31 per cent increase in its loan pipeline between the two quarters.

In a bid to expand its presence in the mortgage market, YBR recently announced that it has agreed to acquire South Australian-based lender Loan Avenue.

YBR executive chairman Mark Bouris said the acquisition continues the mortgage and wealth group’s drive for scale.

“Loan Avenue is a respected B2B brand and has been in operation for 10 years with a significant footprint made up of more than 100 brokers in South Australia and Victoria,” he said.

“This acquisition allows us to quickly build more scale in South Australia, diversify and deepen our distribution network and funding relationships and increase our management capability.

“Loan Avenue brings us some other talented product managers and credit experts with stronger delegated lending authorities, boosting our credit capacity.

“Importantly, this acquisition strengthens our relationship with existing funders and gives us access to an additional funder.”

[Related: YBR undergoes a brand refresh]

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