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ISCOVER
Staff Reporter
Non-bank lender Homeloans suffered a 4 per cent drop in net profit to $4.4 million from $4.6 million in the December 31 half.
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The company’s executive chairman Tim Holmes said the half yearly results did not come as a shock to Homeloans.
“This is a solid half year result, which reflects a continuation of consistent and stable earnings performance over the past four half year periods. They have been achieved amidst continued challenges within the volatile Australian housing market and the mortgage lending and credit markets broadly,” he said.
According to Mr Holmes, borrowers largely shied away from non-bank lenders throughout the Global Financial Crisis, resulting in less than stellar profits.
However, Mr Holmes said there was mounting evidence to suggest people were no longer concerned with flocking to the “perceived safety” of the majors.
“We have seen a very positive increase in demand for our home loan products this half as reflected in our 59 per cent increase in lending volumes. We have worked closely with our key wholesale funding partners to improve and expand our product offering,” he said.
“We continue to streamline our front end application and credit approval processes, allowing us to be more flexible and customer orientated, and continue to provide a very real and refreshing alternative to the big four banks for home finance.”
