DESPITE experiencing a 7% decline in first half year revenue, listed mortgage lender Homeloans Limited (ASX: HOM) has delivered a 31.6% increase in net profit of $5.01 million from $3.81 million.
Homeloans’ revenue for the six months to December 31 was $32.04 million, down from $34.41 million in the previous corresponding period.
Homeloans’ Chairman Tim Holmes said it was a sound interim financial result in what remains a challenging mortgage lending market.
“In an operating environment characterised by subdued housing credit growth and intense competition, lending volumes increased 1.8% on the pcp and were up 7.8% on the six months to 30 June 2012,” he added.
Total funds under administration (including the securitisation portfolio and the Refund Home
Loans portfolio) was $7.7 billion, up from $5.7 billion.
The board declared a fully franked interim dividend of 3 cents up from 2.5 cents.
Holmes said whilst the challenges in the current market conditions will continue into the second half of the financial year, the company is confident that its strategy to focus on the competitiveness of its lending products and service will help drive settlement volumes in the second half.
“Additionally, there are signs that momentum appears to be building,” CEO Scott McWilliam said.
“Recent property data shows home values around Australia are increasing and this, combined with factors including lower than average interest rates, low inflation, and low residential rental vacancies is good news for both upgraders and investors, which could translate into increased market participation.
“Compared with previous years, it seems the market is on a firmer footing, which bodes well for the second half of the financial year.” McWilliam said.
Property Review
