Wealth management company Yellow Brick Road Holdings (ASX:YBR) has grown at three times the pace as the rest of the lending industry in the last six months. According to a report released by the company on Friday, YBR has achieved a 43 per cent increase in loan settlements for the six months ending in April, compared to the previous corresponding period. Over the same period, the broader lending industry grew at 12.5 per cent.
Yellow Brick Road is considered an emerging non-bank lender. The company also consists of Vow Financial and RESI. In February, the company was awarded a five-star Morningstar rating based on its assessed 3-year risk-adjusted performance since February of 2012. It also started a joint venture with Coolabah Capital Investments called Smarter Money Investments (SMI). The joint venture was given a $50m institutional mandate, representing a 25 per cent increase in funds under management.
Yellow Brick Road’s executive chairman Mark Bouris cited strong demand in the lending market and the company’s quick and adaptive product offerings as the reason for its success. “Our growth is the result of eager borrowing and low interest rates, as well as our swift response to rate drops with our ‘Rate Smasher’ product – one of the most competitive rates on offer,” he said. He went further to note that four of the last six months of growth have been the best on record for the company. Shares of YBR are up 2c, or 4.08 per cent, at 51c per share around 2:51pm AEST. YBR has fallen 21.09 per cent in the last 12 months and 15.83 per cent so far this year.
Author: Matthew Dibb
Jun 05, 2015
Matthew has an extensive track record in equity markets and derivative advisory. Spanning a career in several investment banks and prviate wealth groups including Macquarie Bank, his specialist knowledge relates to capital market advisory and equity market analytics. Matthew has a diploma in Financial Advisory, Applied Finance and is ADA 1 & 2 accredited.