Non-bank lender Resimac Group delivered a record normalised net annual profit of $104.0 million, up a stunning 87 percent on the prior year.
Net interest income rose 29 percent to $242.7 million, while home loan settlements increased three percent to $4.8 billion. Home loan assets under management jumped 11 percent to $13.8 billion.
“These results reflect the momentum of our business, driven by growth across our prime and specialist portfolios in Australia and New Zealand, development of our broker and direct-to-consumer brands, strong investor demand for our bonds, and ongoing investments into our digital transformation,” said Resimac chief executive Scott McWilliam.
The Resimac head said the group’s profit was underpinned by an 11 percent rise in home loan assets under management to $13.8 billion.
Record second-half settlements of $2.7 billion drove the lender’s settlements to $4.8 billion, which is an increase of 25 percent compared to the first half.
“Furthermore, we have achieved a record profit of $104 million by consistently delivering above system growth – a clear indication that the Resimac brand continues to resonate well with both brokers and consumers alike.
The company's cost-to-income ratio has fallen 580 basis points to 32.1 percent.
During the year under review, Resimac issued close to $6 billion of prime and non-conforming RMBS at the lowest senior margins since before the global financial crisis.
Stable funding markets
Whilst the economic uncertainty from lockdowns is expected to continue for the first half of 2022, McWilliam said he remained optimistic the economy would recover relatively quickly after vaccinations reached the target rollout, and that the strength in the Australian property market would carry forward.
“Stable funding markets and lower cost of funds provide us with a runway to aggressively target further growth in 2022 and beyond, as we double-down on the development of our broker and direct-to-consumer brands in Australia and New Zealand,” added McWilliam.
The Resimac also commented on the company’s digital upgrade which is expected to complete in early 2022 as well as the diversity of the lender’s product portfolio which is another area that is ramping up quickly.
The company expects to grow its asset finance business over the next three years and said it is preparing to launch alternative loan products focused on sustainability.