Mortgage Choice posts $8.3 million interim profit
Mortgage Choice has posted a 22 per cent fall in interim net profit after tax to $8.3 million, down from $10.6 million in the previous interim period, despite a “noticeable improvement” in demand for housing finance at the end of 2008.
Total revenues fell 7 per cent for the period to $79.8 million, down from $85.5 million in the previous corresponding period, while interim earnings per share fell to 7 cents from 9 cents last year.
However, its loan book now stands at $34.4 billion as at December 31 last year, up 9 per cent from $31.6 billion on December 31, 2007.
Mortgage Choice managing director Paul Lahiff described the interim result as a solid outcome, especially when “considered against a backdrop of a weakened economy plus decreased consumer confidence in the housing market and job security".
“We are satisfied our result is in line with market expectations and the November profit guidance.”
He said the mortgage broker was now well positioned to “take advantage of positive fundamentals” in the sector, including very low interest rates and improved affordability.
"Over the last couple of months we have noted renewed borrower interest, which will stand us in good stead for the second half of [the 2009 financial year]," Lahiff said.
“It is a buyer’s market. We plan to take advantage of it in a number of ways."
Mortgage Choice declared a first half fully franked divided of 4.75 cents per share, compared to 6 cents per share in the previous corresponding period.
Recommended for you
In this week’s episode of Relative Return Insider, hosts Maja Garaca Djurdjevic and Keith Ford discuss a busy week of announcements from ASIC, with submissions to its public and private markets paper made (mostly) public.
In this week’s episode of Relative Return Insider, AMP chief economist Shane Oliver joins the show to unpack Australia’s underwhelming March quarter GDP figures and what they signal for the Reserve Bank’s next move.
The latest episode of Relative Return sees host Laura Dew chat with Brian Jones, founder of outsourcing company VA Platinum, on why choosing to outsource certain functions of your business can enable you to be efficient and productive.
In this episode of Relative Return Insider, hosts Maja Garaca Djurdjevic and Keith Ford are joined by Money Management editor Laura Dew to discuss learnings from JP Morgan’s recent conference in London, and what top fund managers and analysts see driving market behaviour.
