This article is from the Australian Property Journal archive
NON-bank mortgage lender Resimac Group has shrugged off the COVID-19 pandemic, posting another record full year profit.
The group reported a net profit of $55.7 million for the year to June 30, up 79% on the prior year. The statutory NPAT of $56.0 million also increased 19% on the prior year.
CEO Scott McWilliam said it was another record profit, underpinned by home loan settlements of $4.7 billion, up 30% on the prior year.
“Profit growth was driven by strong home loan portfolio growth of 21% to $12.4 billion. Furthermore, the cost to-income ratio decreased significantly to 37.9%, driving a return on equity of 25.5%, an increase of 820 bps,” he said.
The board declared a fully franked final dividend of 1.8 cents per ordinary share, taking the full year dividend to 3 cents.
McWilliam said the group continued to strengthen its funding capabilities with successful diversification of banking and warehouse facilities.
“In 2H20, the group increased and extended over $2 billion of warehouse facilities despite the economic uncertainty arising from COVID-19. Furthermore, the group issued two benchmark sized and oversubscribed public RMBS deals in June and July,” he added.
McWilliam said whilst the economic uncertainty from COVID-19 is expected to continue for the foreseeable future, the group’s portfolio provides a strong base to navigate the current economic environment and position it for future growth.
“At 31 July 2020, 7% of our customers were in active payment deferrals. We expect this number to materially decrease at completion of the six month deferral period.
“It is difficult to forecast the impact COVID-19 will have on the Australian housing market. However, during periods of historical macroeconomic instability, the group maintained strong portfolio and profit growth whilst maintaining low arrears. We believe opportunity remains to increase market share through both the third party and direct channels,” McWilliam said.