The big banks are not the only financial institutions taking a hard look at their expenses. Mortgage lender Homeloans Ltd slashed its operating expenses by 15 per cent in the December 2011 half-year, as it adjusted to "the challenging lending market".The company yesterday reported a net profit of A$3.8 million for the six months to December - down 13 per cent on the previous corresponding period.Homeloans operates as both a mortgage manager and a broker, selling a combination of its own branded loans and third-party loans.The company's loans portfolio increased from $5.6 billion in June last year to $5.7 billion in December - an annualised rate of growth of about 3.6 per cent. System growth over the same period was at an annualised rate of 4.8 per cent.Branded loans, which are funded by Adelaide Bank, ING Direct and NAB's Advantedge arm, make up $3.1 billion of the total.Homeloans' chief financial officer, Cameron Matthews, said the company cut operating expenses by pulling back on marketing spending and by reducing headcount."We made those cost savings progressively through the half. We will see the full benefit in the second half," said Matthews.While the company's net profit was down 13 per cent on the previous corresponding period, it was up three per cent on the June 2011 half. "Our view is that the market has stabilised," said Matthews.