EXPANDER AIMS FOR MORE THAN 15 PER CENT OF THE MORTGAGE MARKET
In 2013, Expander, a company active in the financial consultancy sector, saw revenues of more than PLN 100 million generate profits of a few percentage points. “This year we plan to increase revenues by more than 30 per cent and for our profits to hit the 10 per cent mark. The conditions we are currently facing are conducive to rapid and stable growth with better returns following significant investments made by the company in the past” – said Andrzej Oślizło, Expander’s President in a PAP interview.
“In 2012-2014 we doubled our sales. We see the potential for further growth in the coming years. We still see our company growing organically with further diversification of operations” – he added.
So far in 2014 sales of products other than mortgages generated more than a third of company revenues. The President announced that these products are to account for nearly half of the revenues.
“Despite mortgages’ ongoing domination of sales, other product groups, such as cash loans, investment options, insurance or commercial loans are lines which have been seeing increasingly better results“ – said Oślizło. “I expect the share of other products to grow as this group has vast potential. Two years down the line these will represent half our revenues. We forecast our cash loan sales this year to double the 2013 figure. We expect insurance sales to be several dozen times bigger” – he added.
The President announced that in June Expander’s share in the mortgage market amounted to nearly 11 per cent. “In June 2014 we saw record breaking mortgage market share figures – at nearly 11 per cent whereas two years ago it stood at approx. 5 per cent. In the long term we see our share in the mortgage market growing – we are aiming for more than 15 per cent of the market and a permanent leadership position.” – said Oślizło.
The President estimated that in 2014 the mortgage market will grow by 5-10 per cent. “That’s not insignificant, but one should not overlook, that such good figures are, to a large extent, the result of relatively low volumes at the end of last year” – said Oślizło In the president’s opinion the company has sufficient funds to ensure growth, and has no need to look elsewhere.
“Currently we are generating sufficient funds to be able to reinvest. Thus we do not need third party money to grow, we are self-sufficient. In future we plan to retain surplus profits for investment in order to consolidate Expander brand awareness and expand customer base” – said Oślizło. Over the last two years the company opened 30 of its current 82 branches. By the end of the year Expander expects that number to reach 90.
“We are looking for a few new branches, to have end up with 90 by the end of the year. We consider an optimal chain to comprise 90 – 100 branches, and thus further openings are foreseen” – said Oślizło.
In the first half of 2014 Expander participated in sales of mortgages amounting to PLN 1.86 billion, cash loans of PLN 82 million and investment options at PLN 204 million. In 2003 a 100% stake in Expander’s shares was acquired by GE Investments, part of the General Electric Corporation. In December 2007, the Innova Capital fund acquired 60% of company shares and in 2010 increased its commitment to become the sole owner of Expander. (PAP)