NEWS
LENDERS HOUSING MOULA JOINS BOOM PANEL BOOSTS AT WESTPAC AGGREGATOR PROFIT FAST RESULTS has rebounded from a slump in 2020, posting strong results for the first half of 2021. Shares jumped by 4% on the back of the results announced on 3 May. Westpac recorded a higher profit than expected, with cash earnings of $3.537bn, up 256%, and statutory net profits of $3.443bn, up 189%. Digital transformation, a streamlined head office and the housing boom have all helped, with over $2.6bn added to the mortgage book since the start of 2021. WESTPAC
FIRSTMAC RMBS ISSUE LARGEST BY NON-BANK has announced the largest ever issue of residential mortgage-backed securities completed by an Australian non-bank lender. The Queensland-based bank broke its own 2017 record by chalking up a $2.0bn issue, surpassing the previous high of $1.7bn. Firstmac paid just 73 points above the bank bill rate for the funds, the least since before the GFC. “We’re riding some good volumes now: in April, we settled $500m for the first time,” said CEO James Austin.
Mario Rehayem, CEO, Pepper Money
FIRSTMAC
“We’re extremely humbled with the quality of the investors that have come on board and our ability to showcase what we’ve built over the years” Mario Rehayem CEO, Pepper Money
PEPPER MONEY’S IPO AIMING TO RAISE HALF A BILLION DOLLARS Non-bank lender Pepper Money is set to list on the ASX before the end of the month, with the float expected to raise $500.1m is to float on the stock market on 25 May and is expecting to raise $500.1m with its initial public offering of shares, the biggest to date in 2021. The non-bank lender’s IPO exceeded expectations with a target of $500.1m at $2.89 per share, resulting in a market capitalisation of $1.3bn. “I’m definitely happy on behalf of the wider Pepper team,” said Pepper Money CEO Mario Rehayem. “We’re extremely humbled with the quality of the investors that have come on board and our ability to showcase what PEPPER MONEY
we’ve built over the years.” It marks the beginning of a new era at Pepper, which recently celebrated its 21st birthday. “For us, it’s just another milestone and a part of our new chapter coming into a publicly listed environment,” said Rehayem. “It’s about continuing our ability to help people succeed, continuing to roll out new innovative products onto our extensive distribution platforms through mortgage brokers and introducers and really organically growing this business the way that we have in the past. “The non-bank sector is maturing as a business and as a
sector, and we’re really in a position to be able to grow.” Rehayem paid tribute to the broker community that has delivered billions of dollars’ worth of business to Pepper over the last two decades. “We owe a lot of our growth and success not only to our staff but also to our brokers and introducers. They have been an exceptional business partner and have allowed us to continue to innovate, continue to grow and have represented our brand in a way that we are extremely proud of.” Pepper Money chairman Michael Culhane said he and the board were delighted that investors have the opportunity to become fellow shareholders in Pepper. “Since writing its first loan in 2001, Pepper Money has originated over $32.3bn of loans in Australia and New Zealand,” Culhane said.
Greg O’Neill President and CEO, La Trobe Financial
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