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Australian lender RHG reports return to profit after credit squeeze loss

Australian lender RHG reports return to profit after credit squeeze loss

Australia's RHG Ltd., previously known as RAMS Home Loans Group, on Tuesday reported a 113.8 million Australian dollar (US$105.6 million; euro71.2 million) net profit in the six months ended Dec. 31, compared with a loss of A$2.8 million (US$2.6 million; euro1.8 million) a year earlier.
RHG shares rallied after the company, which last year ran into troubles associated with the global credit crunch, said it will have sufficient cash resources to settle its liabilities as they fall due.
At 2340 GMT, RHG shares were up 4.4 percent at 23.5 A cents (21.8 US cents; 14.7 euro cents).
The profit result included a profit of A$103.3 million (US$95.9 million; euro64.6 million) after tax from last year's sale of RAMS brand and origination business to Westpac Banking Corp.
Chief Executive Officer Glenn Goddard said the RHG board would not be declaring a first half dividend.
"RHG's A$13.4 billion (US$12.4 billion; euro8.4 billion) mortgage book is now closed and in run-off," Goddard said in a statement.
"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," he added.


Updated : 2021-04-20 14:37 GMT+08:00