Bouris business expands to mortgages

A financial institution run by Mark Bouris has launched a mortgage and banking business with the backing of Macquarie Bank.

Yellow Brick Road Holdings Limited on Wednesday signed an agreement with Macquarie Bank, a subsidiary of Macquarie Group, to develop banking and wealth management products and services.

The agreement includes a new mortgage funding and distribution arrangement.

Yellow Brick Road's shares shot up six cents, or 25 per cent, to 30 cents on the news after coming out of a trading halt on Wednesday.

Yellow Brick Road, a wealth management business established in 2007, had been in talks with Macquarie about gaining access to the investment group's balance sheet to fund home and business loans.

Yellow Brick Road Holdings chief executive Matt Lawler said the group would initially offer aggressively priced mortgage products and more banking and wealth management products in 2013.

"Yellow Brick Road is taking its brand and branch distribution footprint to drive market share and establish much needed competition in financial services," Mr Lawler said in a statement.

Yellow Brick Road has 120 branches across Australia, and its major shareholders include Mr Bouris and owner of the Nine Network, the Nine Entertainment Company.

Yellow Brick Road provides home loans, commercial loans, financial planning, insurance, superannuation, investments, accounting and tax advice.

Macquarie Group shares closed 52 cents higher at $31.74.

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