Mortgage Choice says full year cash profit up 10.2 percent on strong settlements

Mortgage Choice says full year cash profit up 10.2 percent on strong settlements
Mortgage Choice says full year cash profit up 10.2 percent on strong settlements

Mortgage Choice said its full-year profit for the year ended June 30 rose in double digits for the second consecutive year, helped by a strong settlements in its core broking business.

The mortgage brokers’s loan book grew 3.6 percent on the previous financial year to $53.4 billion, while its core broking business recorded settlements of $12.3 billion, its highest yet.

The company also declared a fully franked final dividend of 9 cents per share.

Full-year revenue grew a modest 1.1 percent over the previous year to $199 million.

Cash net profit after taxes was $22.6 million, up 10.2% on on the previous financial year.

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Mortgage Choice says full year cash profit up 10.2 percent on strong settlements

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Mortgage Choice says full year cash profit up 10.2 percent on strong settlements

Mortgage Choice has forecast a strong year of business, with CEO Flavell saying the company will focus on growing its network and training of recruits.

“FY17 was a year that saw increased complexity across all areas of retail financial services," said Flavell. He said the volume and velocity of policy and lending products "drove more consumers to Mortgage Choice than ever before”. 

He added that the broker would "continue to accelerate our local area marketing activities to deepen the relationships we have with our customers. Throughout FY17, we implemented a series of grass‐roots brand awareness."

"You may well have noticed a new Mortgage Choice retail store in your local area, seen more Mortgage Choice branded cars on the road, or heard more Mortgage Choice  advertising on the radio. Heading into FY18, the momentum created will be carried forward.” 

In FY2017, its self-branded financing solution, Mortgage Choice Asset Finance. It said the product had seen more than 1,600 loans across the country.

It added 46 new greenfield franchises added to the network.

The broker recently announced that Bennelong Funds Management and Mirvac Funds Management director, Vicki Allen, was replacing retiring chairman Peter Ritchie.

Questions are being asked about what plans CBA has for its minority stake in ASX-listed Mortgage Choice.

Sources told the Australian Financial Review that while CBA wanted a foothold in mortgage broking it was unlikely to target an acquisition of Mortgage Choice. 
Tags: 
Mortgage Brokers Financial Results

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