A visibly uncomfortable John Kinghorn offered a few morsels of positive news to shareholders at RAMS Home Loans’s annual general meeting, sending its stock 25 per cent higher.
The non-bank lender’s founder and chairman, who pocketed $650 million when RAMS listed in July, told shareholders he did not foresee the worst case scenario of a fire sale of mortgages from the group’s $14.8 billion loan book.
If that happens, touch wood, we’re not anticipating that,” Mr Kinghorn said at what was a lightning-fast and surprisingly peaceful 30-minute long AGM.
As expected, RAMS shareholders approved the sale of the group’s franchise network and all of the future business it writes to Westpac Banking Corporation Ltd for a bargain $140 million.
But it was news that RAMS had come closer to securing funding for its existing mortgage book by a February deadline, that boosted its shares.
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