Dilosk founders raise stake above 50% as lender considers further growth

Two co-founders of Dilosk, an Irish non-bank mortgage lender, increased their combined stake in the business to more than 50 percent.

It comes after the company, which operates under the ICS Mortgages brand, more than doubled the size of its loan portfolio last year to 566 million euros.

The company, which was formed in 2013 as a rental lender, entered the homeowner market in 2019. Latest accounts show its mortgage portfolio was split into 56.8% rental loans and 43% home loans. owner-occupants. .

The value of loans and advances to customers reached € 566 million at the end of 2020 against € 251 million at the end of 2019, according to the accounts which have just been filed. This was despite a blow last year to the demand for homeowner home loans in the months when Covid restrictions were at their peak.

A Dilosk / ICS Mortgages filing with the Companies Office this week shows Fergal McGrath increased his stake in the company to 28.2%, while co-founder Oran McGrath increased his stake to 21.9%.

A spokesperson for ICS Mortgages said their increased participation is a testament to the two men’s confidence in the company and its future growth trajectory as a major mortgage provider.

This gives the two a combined controlling stake in the company, where other shareholders include Kevin Cooney and Ray McMahon.

The latest accounts also show that the lender has signed a letter of offer for long-term funding under the Future Growth Loan Scheme of the Strategic Banking Corporation of Ireland (SBCI).

The € 500 million SBCI scheme aims to reduce the cost of credit to various small and medium-sized enterprises thanks to a guarantee from the European Union.

In the case of Dilosk / ICS Mortgages, it is understood that program funds can be used to invest in the business, not to directly support mortgage loans.

Much of Dilosk’s funding comes from capital markets. The lender has raised € 1.3 billion in the markets since its inception, using funds backed by its mortgages to finance new loans.

The new accounts show an after-tax profit of € 672,882 in 2020 against a loss of € 5.7 million the previous year.

At the end of 2020, Dilosk / ICS Mortgages held 3,600 mortgage loans, geographically asymmetric to Dublin and to a lesser extent Cork. The loan book shows that 40% of mortgages contained only interest, with an average 4.11 pc rate being charged.

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