Loss rates on their mortgage book is comparable to CBA.
Azora loss rates:
2015: 0.06%
2016: 0.17%
2017: 0.11%
2018: 0.14%
2019: 0.07%
CBA loss rate (see image):
2018: 0.16%
2019: 0.17%
Note the CBA RBS loss rate is inclusive of all retail lending, which includes credit cards and personal loans. But the mortgage book is a big part of this, so it wouldn't be too far off.
This RMBS issue should be interesting.
As for expected growth rate of Azora:
Over the next 5 years Azora’s Management Team will be aiming to:
- Grow its current loan pool from $382 million (June 2019) to circa $1.5 billion; and
- Grow annual PBT from $5.9 million (June 2019) to over $20 million per annum.
That implies a desired growth rate of ~30% per annum for 5 years in loan book size and PBT.
(20min delay)