Listed non-bank lender Homeloans Ltd has reported a sharp rise in interim earnings on the back of continued growth in its mortgage operations.In a late filing to the ASX on Wednesday, the company said it increased bottom line profit by 112 per cent to A$11.9 million.The rise in net profit is slightly distorted by the timing of the transformational merger between Homeloans and Resimac in the December half of 2016.The group posted an interim net profit of $5.6 million for the six months to the end of December 2016, but this only reflected a partial contribution from one of the merger partners for the period.Homeloans' senior management acknowledged that the latest half-year result was attributable to the "positive impact of the merger and supportive market conditions in the non-bank sector".Homeloans and other lenders not supervised by APRA were able to grow market share among investment borrowers last year as the regulator reined in the lending practices at deposits-funded rivals.The group settled $2.2 billion of loans in the December half - up 37 per cent on the previous corresponding period in 2016."This result certainly reinforces the success of our post-merger focus - that is, growing the loan book by expanding our distribution networks and enhancing our customer experience and service proposition," said joint managing director Scott McWilliam. "Assets continue to grow ahead of market, supported by strong principally funded volumes through our broker and direct channels."Directors said the outlook for the second half "remains positive", noting they expected solid settlement flows to drive the full year performance.Homeloans is one of many lenders to have increased rates on fixed mortgages this month as the impact of rising bond yields begins to flow through to its funding activities.Notwithstanding, the group revealed on Monday that it had shaved pricing on most variable rate products by an average of three basis points.Directors declared a 20 per cent rise in the interim dividend to 0.9 cents per share.