Resimac (ASX:RMC) share price surges up 17% today. Here’s why. // Motley Fool Australia

Resimac Group Ltd (ASX: RMC) shares rocketed up 17.5% to $1.92 a share this morning, after it provided the market with a trading update. The Resimac share price has retreated slightly to $1.91 at the time of writing, up 16.82%.

What was announced?

Resimac has provided the market with guidance on its FY21 first-half profit of between $48 million and $53 million. The company says the numbers will be achieved based on lower funding costs, cost controls, and growth in assets under management. 

Resimac says home loan settlements from July to October were $1.4 billion, with 65% being ‘prime’ loans,  and 35% ‘specialist’ loans. Its home loan assets under management were $12.7 billion, up from $12.4 billion in June. Around 4.4%…