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Homeloans has reported growth in broker settlements and brand recognition, although profit has fallen.
The non-bank lender posted a $6.2 million net profit for the 12 months to 30 June 2014, which was down 19.8 per cent on the previous year. Underlying net profit fell 6.1 per cent to $6.3 million.
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Revenue fell 10.9 per cent to $59.8 million and expenses fell 7.2 per cent to $15.2 million.
The loan book declined 1.2 per cent to $7.6 billion. Settlements jumped 14.9 per cent to $808 million, with broker settlements up 12 per cent and direct-to-lender settlements up 17 per cent.
Chief executive Scott McWilliam said Homeloans had delivered a “solid result” in the face of intense competition and discounting by the major banks.
“Year-on-year, we always focus on growing lending volumes and this year was no exception. We were especially buoyed by strong settlements in the second half of 2013/2014,” he said.
“However, continued market pressures impacted on margins, which, in turn, caused slightly reduced profit levels compared to 2013/2014.”
Mr McWilliam said increasing brand recognition was crucial for Homeloans, which planned to renew its sponsorship with the Big Bash cricket franchise Perth Scorchers.
“Sponsorship of the Perth Scorchers [in 2014] increased our brand recognition with third-party broker partners and we saw a material lift in traffic to the homeloans.com.au website,” he said.
Mr McWilliam also said Homeloans would consider adding new products as part of its goal to grow and diversify.
“We also continue to pursue the expansion of our broker and direct retail distribution footprint, actively assessing inorganic growth opportunities across a range of complementary financial and property service providers,” he said.
[Related: Homeloans announces more interest rate cuts]
