Login
ISCOVER
The brokerage and aggregation group has revealed its strategy to drive up its broker footprint as a means to increase its margin.
Yellow Brick Road Holdings Limited (YBR) has confirmed that the brokerage and aggregation group will be investing further into attracting more brokers to join its network.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Announced via YBR’s interim report for the first half of the 2022 financial year (H1FY22), the group has revealed its “strategic imperatives” for the future, each as a means to grow revenue and margins, reduce loan book run off, assist its digital transition, and to expand its franchise footprint.
One measure included in this vision is the group’s ambition to build its retail distribution and, in turn, increase its margin.
“It was difficult to attract brokers to join the YBR franchise during COVID-19 but we now have a healthy pipeline of prospects in place,” the report states.
The report notes that the group’s continued rebranding to Yellow Brick Road Home Loans, coupled with “increased TVC advertising and a ramp up in PR activities” are measures included in appealing towards more brokers.
Coupling this is the appointment of a senior recruitment executive who is said to be focusing “100 per cent on franchise recruitment” alongside an expansion of the supporting sales team, in addition to the group removing restrictions on franchisees having “prominent shop fronts”, following a “detailed market review”.
“The objective here is to address gross revenue split by increasing the revenue generated by YBR franchises,” the report states.
The focus is mirrored by YBR’s recent announcement of a white label agreement with NAB subsidiary Advantedge Financial Services, said by the group to introduce a new range of products, including construction finance, and variable rates beginning at less than 2 per cent per annum.
It also comes after Yellow Brick Road Home Loans announced in October its intention to introduce a multichannel distribution offering and to expand its broker network.
Growth in loan book, loss in profit
In conjunction with this goal of widening its broker footprint, YBR has released its figures for H1FY22, ending 31 December 2021.
According to the results, the group almost reached $10.8 million in new settled loans, marking a 72.1 per cent increase compared to H1FY21, with New South Wales (81 per cent) and Victoria (66 per cent) seeing upswings over this same comparative period.
Further, wholesale aggregator VOW Financial grew by 76 per cent year-on-year while retail broker Yellow Brick Road also increased by 61 per cent.
The report also notes that the underlying loan book grew by 7 per cent, compared to H1FY21, to over $55.3 billion, while the net present value of the loan book reduced by 3.5 per cent to 39.3 million during H1FY22.
However, while revenue did increase by almost 61 per cent year-on-year, booming to more than $144.5 million, the group reported a $377,000 loss in its net profit after tax.
One year earlier, the group reported a statutory profit of $231,000.
JOIN THE DISCUSSION