A slowdown in the rate of runoff in loans of RHG Group only partly offset a higher cost of funds that is chipping away at the yield that the company can earn on the back book of the former Rams Home Loans Group.RHG yesterday reported a full-year profit of $93.9 million in the year to June 2010 and down from $120 million in 2009.The second half profit was $47.5 million, though this includes a tax refund of $21.1 million.About $5 million of the full-year profit reflects assumptions on longer loan life for the remaining book as customers find refinancing options harder to source.The home loan portfolio of RHG was $5.1 billion at June 2010, down from $6.0 billion at December 2009 and $7.7 billion at June 2009.RHG reiterated that it was looking at alternative investment opportunities and that if "no superior investment opportunity" arises then the company will return the capital to shareholders.