Yellow Brick Road reduced the net present value of its future trail commissions by A$4.3 million to reflect higher run-off rates in its loan book and a further $1.3 million to reflect changes to its “margin and mix experience”, pushing it into loss for the year to June. YBR said the big factor driving its higher run-off rate was refinancing activity, “with customers taking advantage of the competitive market in the search for lower rates”. The company settled $19.9 billion of loans during the year – down 7.2 per cent on the previous year. The loan book grew 6.8 per cent to $63 billion. Net commissions fell 7 per cent to $13.3 million, while net income from fees rose 8 per cent to $7 million and other income rose 7 per cent to $6.3 million. The loss before tax was $5 million but an income tax benefit reduced the loss to $3.5 million. Excluding the non-cash items, the company reported underlying EBITDA of $436,000, down from $1 million the previous year. Net cash used in operating activities was $1.3 million, compared with net cash flow of $3.9 million in 2021/22. YBR’s own brand product – a combination of white label arrangements and securitisation – had settlements of $400 million and finished the year with a loan book of $1.5 billion. YBR formed a joined venture with asset manager Magnetar Capital to launch a mortgage-backed securitisation business. It has a $500 million facility. The securitised product had settlements of $205 million during the year and the value of the loan book is $361 million - a pretty modest outcome after four years. The company continues to invest in that side of the business and is launching a direct-to-consumer channel. Another initiative, digital mortgage broking business Y Home Loans, was launched last year. There is no mention of it in yesterday’s financial report or investor presentation. It appears to have sunk without a trace.