RHG milks profits with high rates
RHG, the former Rams Home Loan Group, has reported a $69 million profit for the half year to December from its declining mortgage portfolio. RHG sold its RAMS brand and franchised network of branches to Westpac after its' sources of funding collapsed not long after listing on the ASX in August 2007.
RHG has reduced interest rates to customers more slowly than many other lenders and this has accelerated the rate of refinancing, with the loan portfolio declining by 26 per cent over only six months to $9.2 billion. The average interest rate paid on the RHG loan book was in excess of nine per cent over the December 2008 half.
Source: The Sheet