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Mortgage Choice has credited the GFC with making it a stronger business after posting record profits and announcing plans to open another 50 franchises.
The group reported an underlying net profit of $9.7 million for the six months to 31 December 2013, a 28.5 per cent increase on the year before.
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Underlying revenue grew by 18.6 per cent year-on-year to $87.4 million, which the group attributed to a rise in settlements and successful cross-selling.
Mortgage Choice’s results were, however, distorted by the sale of LoanKit during the reporting period, which generated a net gain of $1.3 million.
Including the LoanKit figures, the group’s net profit rose 46.4 per cent to $11 million, while revenue climbed 20.5 per cent to $89.4 million.
Mortgage Choice also reported a 21.6 per cent rise in approvals to $6.2 billion, an 18.8 per cent rise in settlements to $5.3 billion and a 4.4 per cent growth in its loan book to $46.4 billion.
Brokers completed an average 37 settlements during the six months, compared with 31 the year before.
Chief executive Michael Russell said brokers had “been preparing for this market” since the GFC.
The financial crisis had forced franchises to become more efficient and they were reaping the rewards now that the market had turned in their favour, he said.
“Our chance has come and we really are working very hard to make hay while the sun shines,” Mr Russell said.
Mortgage Choice expects to increase its franchise network from 394 to about 450 “within the next couple of years”, he said.
“Our market share indicates that we’ve got a long way to go before we look to close marketing areas nationally,” he said.
Mortgage Choice reported that its share of new home loans remained steady at 3.9 per cent.
The majors provided 52 per cent of the group’s settlements, down from 56 per cent, while the other banks grew their share from 34 to 38 per cent.
Commonwealth Bank was Mortgage Choice’s leading lender, with 20 per cent of settlements, followed by ANZ with 16 per cent, Bankwest with 11 per cent, NAB Broker with 10 per cent, ING Direct with 8 per cent and St George with 6 per cent.
