Mortgage aggregator Finsure Group has finished the 2019-20 financial year in a strong position despite COVID-19 challenges by achieving record settlements of $4.5 billion for the June quarter, a 37 per cent rise on the corresponding period.
Finsure managing director John Kolenda said the results, which were announced to the ASX by BNK Banking Corporation, are an outstanding performance against the backdrop of the coronavirus pandemic.
Finsure settled $15.6 billion in loans during FY20, bringing the total aggregation loan book to $45.4 billion.
“Despite COVID-19, Finsure’s growth continues to be a standout with record settlement volumes and strong broker recruitment anticipated,” Mr Kolenda said.
“Finsure’s settlement volumes and loan book grew 23 per cent and 19 per cent [year-on-year] (YoY) respectively despite difficult market conditions. This growing scale is now driving sustainable profit growth in its own right and creating increased margin opportunities within the [banking and wholesale] units.”
According to him, Finsure’s market share continues to grow through the year recording a record monthly record of $1.71 billion in settlements during June 2020, a run rate of approximately $20 billion. This was the second consecutive record month for Finsure.
BNK announced to the ASX it settled $129 million in FY20, up 73 per cent YoY, and closed FY20 with $285 million of on-balance sheet loans, up 33 per cent YoY.
“BNK continues to achieve growing operating leverage with operating expense growth below 5 per cent and growing profitability,” said BNK interim CEO Don Koch.
“The growing scale of the Finsure aggregation business creates great opportunity for the [banking and wholesale] businesses to manufacture high margin products and grow loan assets.
“With low operating expense growth and growth in loan assets contributing to growing operating leverage and profits, the group remains well capitalised with a strong balance sheet and has made significant progress with diversification of funding over the period. We look forward to announcing the audited FY20 results in late August.”