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The non-bank lender has posted “significantly higher” half-year application and settlement volumes in the home loan space.
Non-bank lender Resimac Group Ltd (Resimac) has credited higher home loan application and settlement volumes for boosting assets under management (AUM) levels and net interest income in its results for the half year ending 31 December 2024 (1H25).
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First-half home loan settlements rose 4.3 per cent year on year from $2.3 billion to $2.4 billion.
Home loan applications also grew, up 48.3 per cent from $2.9 billion to $4.3 billion.
Resimac reported a 25 per cent increase in active brokers submitting home loan applications compared to the previous corresponding period (1H24).
In its asset finance division, the lender said that organic growth continued to be the driver of AUM growth.
Asset finance settlements remained flat annually at $0.4 billion while applications also stayed unchanged year on year at $0.7 billion.
However, the number of asset finance applications grew 10 per cent on a year earlier.
The surge in active brokers submitting applications across the home loan and asset finance space continued the growth Resimac reported in the previous financial year.
Speaking to The Adviser on the group’s performance, interim CEO Susan Hansen said: “We were pleased to see a rise in broker applications in the first half for FY25, which can be attributed to a strong product offer in market along with our continued focus on engaging with our valued broker partners.
“Partnering with brokers remains a key part of Resimac’s strategy, driving growth in our home loan portfolio and contributing to the increase in AUM.
“The positive momentum in settlement volumes provides a solid foundation for the remainder of FY25.”
AUM inches up
Resimac posted a 1 per cent increase in AUM to $14.2 billion.
This included a $0.1 billion increase in home loans to $13 billion (up 1 per cent) and a $0.1 billion rise in asset finance loans to $1.2 billion (up 9 per cent).
Resimac reported total origination volumes of $2.8 billion (up 5.6 per cent when compared to 2H24) and total application volumes of $5 billion, up by 39 per cent.
Hansen praised growth in the asset finance segment, with an 18 per cent increase in AUM on an annualised basis.
She also said households and small businesses have been challenged by higher-than-expected interest rates and the increased cost of living over the past six months.
“These economic pressures have affected the performance of our loan portfolios, as evidenced by rising arrears, financial hardship applications, and defaults, resulting in increased write-offs and collective provisioning,” she said.
Resimac reaffirms broker commitment
In comments to The Adviser, Hansen said Resimac would look to improve its broker offering going forward.
"We remain committed to continually improving our service proposition for brokers. While we’ve made progress, we know there is still work to be done and we are focused on consistently enhancing our offerings to better serve brokers and customers,” Hansen said.
In its financial results, the lender said again that it remained focused on “being Australia’s top non-bank lender through a broker and customer-focused growth strategy”.
Resimac said in the six-month period that it had strengthened broker partnerships by building out automation and digitalisation of its home loan processes.
Active broker numbers increased by 25 per cent compared to the previous half after improving “speed, ease and consistency,” Resimac said.
In October 2024, Resimac agreed to purchase the portfolio of auto loan receivables and leases from Westpac Banking Corporation in a deal worth up to $1.5 billion. The deal is due to settle on 28 February 2025.
Hansen said: “The Westpac auto portfolio acquisition aligns with Resimac’s asset finance division’s strategic growth objectives, allowing the group to access over 100,000 new customers and introduce new products to its offerings.
“We continue to deliver on our strategic priorities with the ongoing digital transformation of our business.
“The balance sheet is showing signs of growth, the portfolio is continually being diversified, and we are achieving positive funding outcomes while remaining committed to assisting our customers during these challenging times.”
This will likely be Hansen’s last reporting period as interim CEO, with Pete Lirantzis set to take the reins after being announced in December as the new CEO. Lirantzis will begin in his new role following the expected completion of the migration of the Westpac Auto Back Book in the first half of 2025.
[Related: Resimac appoints new CEO]
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