Resimac shows how it's done
Mortgage lender Resimac Group showed up some of its bigger rivals in the December half, with solid growth in revenue, profit, settlements and its loan book.Resimac (formerly Homeloans Ltd) earned revenue of A$231.1 million during the December half - an increase of 25 per cent over the previous corresponding period. Net interest income increased by 8 per cent to $55.1 million.Net profit was up 58 per cent to $18.9 million. On a normalised basis, after adjusting for "de-recognition" of its investment in Finsure and tax adjustments related to an investment in eChoice, profit was up 12.8 per cent to $14.5 million.Mortgage settlement flows, both principally funded and non-principally funded, were $2.2 billion - an increase of 3 per cent over the previous corresponding period.Principally funded loans and advances were worth $9.4 billion and the non-principally funded portfolio was worth $3.4 billion. The principally funded book grew 19 per cent, on an annualised basis, while the non-principally funded book fell 4 per cent.The loan impairment expense rose 83.5 per cent to $1.6 million. The increase was due in large part to adoption of AASB 9 expected loss methodology.The group's funding program during the half included an inaugural US 144a non-conforming issue and new warehouse lines with Singapore bank United Overseas Bank and Japanese bank MUFG Bank.The group says the new warehouse lines establish strategic relationships for Asia Pacific and Japanese bond distribution.The company's return on equity (on a normalised basis) was 17.6 per cent, unchanged from the previous corresponding period.