The Resimac Group Ltd (ASX: RMC) share price rocketed up 17.5% this morning, after it provided the market with a trading update.
The post Resimac (ASX:RMC) share price surges up 17% today. Here’s why. appeared first on Motley Fool Australia. –
Resimac Group Ltd (ASX: RMC) shares rocketed up 17.5% to $1.92 a share this morning, after it provided the market with a trading update. The Resimac share price has retreated slightly to $1.91 at the time of writing, up 16.82%.
What was announced?
Resimac has provided the market with guidance on its FY21 first-half profit of between $48 million and $53 million. The company says the numbers will be achieved based on lower funding costs, cost controls, and growth in assets under management.
Resimac says home loan settlements from July to October were $1.4 billion, with 65% being ‘prime’ loans, and 35% ‘specialist’ loans. Its home loan assets under management were $12.7 billion, up from $12.4 billion in June. Around 4.4% of customers were in COVID-19 payment deferrals at October 31. Remicas says it is unlikely to increase the 30 June 2020 COVID-19 collective provision overlay of $16.4m.
Brief take on Resimac
Resimac is a leading non-bank residential mortgage lender. It was recognised as Australian Non-Bank of the Year by the Australian Mortgage Awards in 2020. Resimac’s business includes origination, servicing, and funding residential mortgages in Australia and New Zealand. The company’s loan book is more than $12 billion, and assets under management at almost $15 billion.
Recently Resimac signed a partnership agreement with technology provider Infosys Finacle to deliver more personalised digital banking experiences for its customers. The move facilitates Resimac’s “end-to-end digital modernisation”, taking it a step closer to its goal of becoming Australia’s first ‘neo-non-bank’.
How did Resimac share price fare in 2020?
The Resimac share price has gone up by 30% on a year-to-date basis including today’s rise of 17.5%. At current price of $1.92, the company commands a market cap of $667 million.
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