Mortgage Choice: profit down, market share up
Listed mortgage broker, Mortgage Choice, today announced a cash profit of $6.5 million for the half-year to 31 December 2011, a 26.1 per cent decline on the prior corresponding period.
The fall in net profit was the result of increased operating expenses over the period, and lower than expected revenue from comparison website, HelpMeChoose.com.au. Looking ahead, the broker expects operating expenses to be lower in second half of the financial year due to a component being non-recurring.
Total group revenue on a cash basis was $72.2 million, an increase of 5.2 per cent quarter on quarter and 2.6 per cent on the previous corresponding period.
Despite the profit decline, Mortgage Choice said it was “an interim financial performance that reflects the group’s continued strength in its core business and an ongoing commitment to its diversified businesses.”
The group’s loan book grew to $43.5 billion, up 5.6 per cent on the $41.2 billion balance at 31 December 2010, while the company’s market share of new home loans rose to 4.5 per cent – its highest since the first half of the 2007 financial year.
A fully franked interim dividend of 6 cents per share was announced – on par with the previous corresponding period.
Mortgage Choice chief executive Michael Russell said, “Mortgage Choice has demonstrated a solid performance across a range of crucial metrics despite some operational expenses being brought forward and lower than expected revenue from HelpMeChoose.com.au.”
Russell said the group’s brokers had hit near-record highs in productivity, with the number of settlements per loan consultant increasing to 32 in 1H12 from 28 in 2H11 while it continued to grow its franchise footprint, reaching the highest level since a model restructure in 2009.
“During 1H12, Mortgage Choice strengthened its investment in the brand with the launch of a new integrated marketing campaign alongside the introduction of a new franchise recruitment strategy,” he said.
“It is extremely satisfying to report healthy revenue, recruitment growth, and improved broker efficiencies in a market where borrowers remained conservative.”
- Categories
- Banking
- Tags:
- Mortgage Choice, Michael Russell, first-half profit
- Author:
- AB+F Online, mdavis@financialpublications.com.au
- Article Posted:
- February 22, 2012
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