rhg announces half year profit 22.6 million

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
said.
“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.