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Yellow Brick Road’s most successful franchises are the ones that have embraced diversification, according to the group’s results.
Yellow Brick Road reported a $3.6 million loss for the six months to 31 December 2013, a four per cent improvement on the previous year’s result.
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Loan book exceeded $2 billion, revenue jumped 59.4 per cent year-on-year to $15.3 million, while operating expenses rose 19.5 per cent to $9.31 million.
The number of branches increased from 168 to 184 during the period. Retail lending provided 74 per cent of branch revenue and wealth management 25 per cent, according to the results.
“It is important to note that the ratio of wealth management to mortgage revenue among the top 20 branches is even higher at 40 per cent, showing that as branches become more mature, their capability to offer full advice increases significantly.”
Executive chairman Mark Bouris said the franchise group only recruited brokers that believed in diversification.
“You can’t come to Yellow Brick Road with 15 years mortgage broking experience and expect to do the same old thing,” he said.
“Home loans are an important part of our business but that’s not what we’re about. We are about the whole picture – the loan, the risk protection, the investment strategy and the retirement plan.”
