Yellow Brick Road's (ASX:YBR) Vow Financial business has recorded a 56% growth in settlements and is on track to become the third largest mortgage broking group in Australia within the next 6-12 months.
When it was acquired by YBR in August last year, Vow was the eighth largest mortgage broking group.
The growth in settlements, which is almost four times the market growth rate of 15%, is due to strong backing from YBR in the lead-up to the traditional Spring property sales season.
Westpac ranked its performance third nationally over the period and places Vow on track to become the third largest mortgage broking group in the Australian market within the next 6-12 months.
"Vow is expected to deliver $3 billion in settlements in the final quarter, which is a great result," executive chairman Mark Bouris said,
"Since acquiring the group last year we have increased loan writers by 20%, and made significant improvements to our product offering, including the launch of Vow Home Loans.
"While the market overall has been strong, particularly in New South Wales, Vow has outperformed other brokers four-fold, which is a testament to the hard work of Vow CEO Tim Brown and his team."
Westpac national manager strategic partnerships Paul Bakker added that Vow also recorded one of the highest conversion rates from application to settlement.
In March, YBR forecast that it would achieve an underlying EBITDA profit in the 2015 financial year as it captures economies of scale by expanding its distribution through acquisitions.
This highlighted its progress towards becoming a leading non-bank entity in Australia.
It reported consolidated revenues of $59.2 million for the six months to 31st December 2014, an increase of 288% while cost growth was contained at 33%, improving the operating expense to gross profit ratio by a third.
Separately, the company's joint venture with Coolabah Capital Investments Pty Ltd, Smarter Money Investments (NYSE:SMI), was awarded a $50 million institutional mandate and a five-star Morningstar rating.
Vow Financial's 56% growth in settlements places it on track to become the third largest mortgage broker in Australia and highlights the economies of scale brought about following its acquisition by Yellow Brick Road.
This growth demonstrates that Yellow Brick Road is well on its way to becoming a fast growth leader in the non-bank sector.
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