Leading non-bank lender Homeloans Limited has released its 2016 Annual Report which boasts some strong financial results. Both the chairman and CEO have attributed this success, in part, to the firm’s relationship with its broker network.
In FY16, total loan settlements including branded and non-branded loans increased by 3% to $1.8 billion. The volume of home loans originated by mortgage brokers represented more than 50% of all new loans acquired by Homeloans in Australia.
“Given the relevance and importance of this channel in the home mortgage market, we remain focused on supporting and growing the existing relationships we have with our broker partners as a key component of our distribution strategy,” said CEO Scott McWilliam.
Total branded settlement volumes delivered through third party channels increased by 21% during the 2016 financial year.
“We are pleased with branded loan settlement growth,” McWilliam said. “The company’s reputation for delivering quality service to the broker market as a viable alternative to the major lenders in the market continues to grow.”
Although Homeloans delivered a net profit of $5.3 million for FY16, this was down from the $5.6 million profit the previous financial year. The reason for this decrease was costs incurred during the RESIMAC merger process which led to a combined loan portfolio of over $13 billion.
The firm has also continued to grow its presence on the eastern seaboard which led to strong growth in the number of loan settlements, said Homeloan chairman Robert Scott.
“By offering brokers and customers competitive products and quality of service, the company continued to consolidate its position as a viable alternative to the major banks during FY2016.”
This expansion was accompanied by the development of the company’s third party distribution channels, Scott said.
“Our focus is on providing a diverse and competitive suite of products which, when delivered in combination with our existing strong third-party broker relationships, continues to support the growth in settlements and maintain profitability.”
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