RHG 0.00% 50.0¢ rhg limited

rhg announces half year profit 22.6 million

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    RHG Limited (previously known as RAMS Home Loan Group) today announced a half-year profit
    from continuing operations of $22.6 million.
    Consolidated profit after income tax was $113.8 million, which included a profit of $103.3 million
    after tax from last year’s sale of the RAMS brand and origination business to Westpac.
    RHG Chief Executive Officer Glenn Goddard said the RHG board would not be declaring a
    dividend for this period.
    “RHG’s $13.4 billion mortgage book is now closed and in run-off,” Mr Goddard said.
    “RHG will continue to manage and service its mortgage book, and the profits of the business will
    reduce over time in line with that rundown.
    “After meeting liabilities, the directors’ future intention is to return all excess cash generated in
    wind-down to shareholders.
    Mr Goddard said RHG’s mortgages continued to perform in line with expectations, with arrears in
    line with market peers.
    He said RHG had recently repaid its $6.17 billion extendible commercial paper program in full, via
    funding through warehouse facilities, a private placement of a rated security and the sale of $1
    billion worth of mortgages at face value.
    “RHG has $8.6 billion of warehouse facilities due to roll this calendar year. While RHG has
    commercial expectations that these will be rolled, there remains uncertainty in the market,” he
    “Following the Westpac transaction, RHG’s significant liabilities, excluding liabilities of the
    Group’s securitization vehicles, include trail commissions to brokers of $44 million, debt of $28.5
    million and taxation payable of $29 million. RHG’s directors are satisfied the group will have
    sufficient cash resources to settle these liabilities as they fall due.
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