Centrepoint Alliance is to seek more premium funding business in eastern Australia as it tries to rebalance its portfolio away from WA.

MD John de Zwart says the premium funding business’ distribution has historically been weighted towards the west.

“Business mix is being rebalanced, with future market share growth targeted from the eastern states,” he said in a presentation to analysts last week. “The business has strong risk management, with bad debts relatively benign.”

Centrepoint has increased its bank funding limit by 35% to $145 million, and extended it to January 2015.

“A second funding partner is being [sought] in conjunction with our existing lender NAB,” Mr de Zwart said.

“The operational platform is functioning well and providing consistent service and fast turnaround time. The platform has the ability to scale further, requiring additional investment.”

Centrepoint took the number of active brokers using its services to 269 last financial year, up from 228 the previous year.

The number of loans grew to 19,801 from 16,079, but average loan size fell 6% to $18,585 from $19,715.

Mr de Zwart says the smaller loans are more profitable, but this has been tempered by higher commissions for brokers.

Expenses for the premium funding business increased 5% to $11.2 million.