This article is from the Australian Property Journal archive
Non-bank lender Resimac posted a half-on-half drop in profit due to higher impairment expenses, but operating profit grew by 20% with stronger numbers recorded in its home loan segment.
Operating profit came in at $35.9 million, while statutory net profit after tax came in at $13.5 million, down 6.9%.
The home loan segment saw significantly higher application and settlement volumes of $4.3 billion and $2.4 billion respectively, boosting assets under management levels and net interest income for the period.
Origination volumes lifted 5.6% to $2.8 billion, and application volumes by 39% to $5.0 billion.
“The past six months have presented challenges for households and small businesses due to higher-than-expected interest rates and the increasing cost of living. These economic pressures have affected the performance of our loan portfolios, as evidenced by rising arrears, financial hardship applications, and defaults, resulting in increased write-offs and collective provisioning,” said Resimac’s interim CEO, Susan Hansen.
“The much-anticipated interest rate reductions expected in the 2025 calendar year will be a welcome relief to our customers.”
Its asset finance segment showed an increase in assets under management by 18% on an annualised basis. During the period Resimac acquired Westpac’s circa $1.5 billion auto finance loans book, giving the group access to over 100,000 new customers.
“The group remains focused on being Australia’s top non-bank lender through a broker and customer-focused growth strategy. We have continued to build out automation and digitalisation of home loan processes, strengthening our broker partnerships,” Hansen said.
Broker numbers increased by 25% year-on-year.
