If you go to the chairmans letter in the annual report, it...

If you go to the chairmans letter in the annual report, it states consumer debt levels are at a record high, new enquiries are increasing and demand for our products and services is growing. This is currently occurring in a historically low interest rate environment. As interest rates normalise demand for our products and services will accelerate.


The core part of the business is actually managing debt agreements which will likely increase as interest rates rise.


With the house lending, FSA is only risking 3% of the amount lent. Westpac front up 90% of the loan and another lender 7%. Provide the property market does not dramatically collapse, in a lot of cases bad loans will be recovered when the property is eventually sold.


I hope that helps.