Holding its fire in a congested mortgage market, Liberty Financial is growing fast in niche lending segments. Liberty yesterday reported a fall in net profit over the half year to December 2022, to A$109.9 million from $122.3 million in the prior period. “The conditions you have seen from others in the last week is reflected in our portfolio balance,” CEO James Boyle said. “We’re proud to deliver record originations and grow our portfolio in a market that’s been tougher for non-banks than banks.” Total financial assets for the group increased slightly, to $13.2 billion in December from $12.9 billion in June. Referring to the present wave of refinancing of fixed rate loans, Boyle said: “there’s a heightened state of activity. We’re looking for opportunities to participate. “It’s more competitive than we’ve seen it. “We have seen a drop in demand, but we are able to find customers who like our service and our offer.” Unlike many lenders reporting this profit season – and reflecting its weighting to sub-prime loans – Liberty reported a decline in credit quality. “We are helping challenged customers, which we are starting to see show up in the arrears numbers.” Liberty reported better than double digit loan growth in auto finance and personal loans. “It’s a tough environment out there,” Boyle said. “If we could maintain these growth rates, it would be a good result.”