Liberty Financial Group Ltd · ASX:LFG
Liberty Financial — FY2025 Earnings Presentation
40 slides from Liberty Financial's earnings presentation, Aug 25, 2025
Slide 1: Liberty Financial Group FY25 Full Year Results
Liberty Financial Group FY25 Full Year Results 25 August 2025
Slide 2: Acknowledgement of Country
Acknowledgement of Country Liberty acknowledges the traditional owners of country throughout Australia. We acknowledge their continuing connections to the lands, waters, cultures and communities. We pay our respect to Elders past and present. In doing so we also acknowledge that sovereignty has neve
Slide 3: Presenting today
Presenting today James Boyle Peter Riedel Chief Executive Officer Chief Financial Officer |3
Slide 4: Agenda
Agenda 01 Overview 02 Results Analysis 03 Business Update 04 Outlook 05 Summary 06 Questions
Slide 5: Overview
01 Overview
Slide 6: Overview
Overview Delivered return to profit growth for FY25 and 2H25 NIM expansion in 2H25 from positive funding markets Lower impairment expense as credit risk moderates Effective cost management with stable cost to income ratio Portfolio stability through disciplined execution Investment grade balance she
Slide 7: Financial Highlights FY25
Financial Highlights FY25 % Underlying NPATA Net revenue NIM $145m ($132m) $604m ($583m) 2.49% (2.51%) +10% +4% (2bps) BDD Cost to income Distribution & Dividend 19bps (25bps) 27.1% (28.0%) 52c (25c) (6bps) (90bps) 108% |7 *Balances represent: FY25 (FY24) change between the periods. Distribution & d
Slide 8: Operating Highlights FY25
Operating Highlights FY25 Average financial assets New assets originated Impaired loans $14.7b ($14.1b) $5.1b ($5.7b) $341m ($309m) +4% (10%) +10% Average FTE Staff Broker NPS Customer NPS 524 (548) 83 (82) 58 (60) (4%) +1% (3%) |8 *Balances represent: FY25 (FY24) change between the periods; NPS=Net
Slide 9: Results Analysis
02 Results Analysis
Slide 10: Profit Performance Full Year
Profit Performance Full Year Underlying NPATA ($m) Statutory NPATA ($m) $145.0 $145.1 $132.0 $127.1 FY24 FY25 FY24 FY25 Increase in Underlying NPATA ( FY25 v FY24) explained by Impact of sale of MPRE • Higher net interest income driven by higher average portfolio ($12m) • FY24: lower statutory NPATA
Slide 11: Profit Performance Half Year
Profit Performance Half Year Underlying NPATA ($’m) Statutory NPATA ($'m) $71.4 $73.6 $71.5 $73.6 $62.4 $63.1 2H24 1H25 2H25 2H24 1H25 2H25 Increase in Underlying NPATA (2 H25 v 1H25) explained by Impact of sale of MPRE • Stable net interest income with increase in NIM (+4bps) • 2H24: higher statuto
Slide 12: Profit Drivers
Profit Drivers Total Revenue ($'m) Loan Impairment (bps) 13 $731.9 $759.8 $731.1 Total revenue reduced 4% (2H25 v Impairment stable (2H25 v 1H25) 1H25) driven by lower yield 10 9 as lower realised losses (3bps) following pass through of RBA rate offset by higher provisions with reductions increased
Slide 13: Revenue
Revenue Average Assets ($'b) Lending Income ($'m) Average assets stable (2H25 v $14.3 $14.7 $14.7 1H25) as commercial growth $46 $46 $43 offsets reduction in residential and motor Reduced lending income between Average assets +3% (2H25 v periods consistent with reduced 2H24) as commercial and person
Slide 14: Funding
Funding Cost of Funding Term Funding ($b) 6.14% 6.16% 10.3 2.1 10.3 5.86% 1.5 9.7 1.62% 1.82% 1.78% 1.71% (2.1) (2.1) 4.32% 4.38% 4.15% New New 2H24 1H25 2H25 Jun-24 Repaid Issues Dec-24 Repaid Issues Jun-25 181bps 146bps 173bps 122bps 167bps Funding benchmark 415bps in 2H25 (decrease of 23bps v 1H2
Slide 15: Portfolio Risk
Portfolio Risk +30 Day Delinquency +90 Day Delinquency 4.08% 2.32% 3.79% 3.85% 2.11% 2.06% 2H24 1H25 2H25 2H24 1H25 2H25 June delinquency always seasonally higher than December Late-stage delinquency largely stable with annual increase to 30- Early-stage delinquency stable with annual increase to 30
Slide 16: Loan Impairment
Loan Impairment 2H24 (13 bps) 2H25 (10 bps) 9 17 13 6 3 -12 -8 -5 Specific Specific Specific Specific Realised Provision Provision Collective Realised Provision Provision Collective Loss (Release) (Increase) Provision Loss (Release) (Increase) Provision 1H25 (9 bps) 15 Impairment expense 10bps in 2H
Slide 17: Loss Provisions
Loss Provisions Portfolio by Stage ($'m) Collective Provision Provisions by Nature ($'m) by Stage ($'m) $98 $97 $94 $14,638 $14,799 $14,667 $75 $70 $58 Total provisions at Jun-25 ($94m) $75 $70 $58 $14,103 $13,945 consistent with prior periods $13,950 $54 notwithstanding reallocation $50 $43 between
Slide 18: Expected Credit Loss
Expected Credit Loss ECL by Segment ECL Economic Scenarios ($m) $82 $69.9 ($1.1) ($8.5) ($2.7) $57.6 $16.8 $58 $47 $14.1 $43 $45.5 $37.0 ECL Movement (-) ($15m) ($11m) $24m Calculated 100% 100% 100% $7.6 $6.5 ECL upside baseline downside Expected Dec-24 Residential Secured Fin Serv Jun-25 Loss Econo
Slide 19: Operating Expenses
Operating Expenses Operating expenses ($m) 2H24 1H25 2H25 Personnel 47 45 48 Other 32 36 34 Cash expense FY25 increase 3.5% Cash expenses 79 81 82 Cost to income stable over the period due to effective cost management IP amortisation 6 6 6 Higher personnel costs in 2H25 reflect Total expenses 85 87
Slide 20: Distributions and Dividends
Distributions and Dividends 52c 45c Interim distribution 12 cents paid in Dec -24 for 5- 15c month earnings period to Nov-24 24c 5c Special dividend 5 cents paid in Dec-24 25c Final distribution 20 cents* for the 7-month 20c earnings period to 30-Jun-25 to be paid 29-Aug-25 13c Second special fully
Slide 21: Financial Position
Financial Position $m Jun-24 Jun-25 Cash 941 888 Strong liquidity position with total ($9.4b) and available Financial assets 14,638 14,660 ($4.5b) limits at 30-Jun-25 Stable balance sheet and leverage Loans to related parties 96 77 Underlying cash ROE 12.1% Other assets 631 618 Investment grade rati
Slide 22: Business Update
03 Business Update
Slide 23: Business Update
Business Update Disciplined lending with stable portfolio Competitive pressures and discharges impacting residential Commercial lending and portfolio growth remains strong Competition continues to impact motor finance Fin Services portfolio growth despite challenging environment Continued ongoing ef
Slide 24: Segment Loan Origination
Segment Loan Origination Residential ($'m) Secured ($'m) $1,701 Reduced loan origination reflects $985 $1,538 disciplined approach, highly $874 $1,351 Reduced loan origination reflects competitive environment and $753 continued competitive pressures in subdued consumer demand motor finance impacted
Slide 25: Segment Loan Portfolio
Segment Loan Portfolio Residential ($'m) Secured ($'m) $7,987 $7,949 $5,701 $5,848 $5,910 $7,752 Reduced portfolio as discharge and Discharge and amortisation rate amortisation rate increased to 38% increased to 23% (FY24 21%) (FY24 36%) and exceeding new Portfolio growth achieved from loan originat
Slide 26: Relative Value Drivers
Relative Value Drivers Net Interest Margin Cost to Income Ratio 2.49% 65.6% 61.5% 2.08% 1.98% 1.88% 1.88% 52.1% 52.8% 53.1% 51.7% 1.70% 46.9% 1.56% 1.57% 44.9% 45.7% 1.48% LFG Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Bank 6 Non-Bank 1 Non-Bank 2 LFG Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Bank 6 Non-Bank 1 Non
Slide 27: ESG, People and Culture
ESG, People and Culture AFR Best Places to Work 2025 AWEI Silver Employer 2025 Diversity Council Australia Inclusive Employer 2025 Murrup and Koorie Academy partnerships B Corp self-certification 135 (increase from 107 in FY23) 95% staff proud to work at Liberty | 27
Slide 28: Outlook
04 Outlook
Slide 29: Outlook
Outlook Environment supports origination and portfolio growth Delinquency to reduce as interest rate cycle normalises % NIM expansion expected to continue NIM, CTI and ROA peer outperformance reflects discipline Automation to maintain leading operational efficiency Ongoing investment in improving di
Slide 30: Summary
05 05 Summary Summary
Slide 31: Summary
Summary Return to profit growth % Leading peer NIM, CTI and ROA with bank-like capital Continued focus on exceptional service and cost to serve Strong liquidity and capital position to support growth Continuing investment in diversifying customer solutions Ongoing investment in digital customer solu
Slide 32: Questions
06 Questions
Slide 33: Appendix
Appendix
Slide 34: Who is LFG?
Who is LFG? Liberty Financial Durable Business Model Diversified Portfolio Started 1997 and only investment Advanced risk-management grade non-bank (BBB/stable/A-2) capabilities Pioneered specialty finance industry Proprietary technology supports in Australia and New Zealand operations $14.7b Over 5
Slide 35: Products and Service
Products and Service Residential Finance Financial Services Australian mortgages Personal loans • Personal loans in Australia • Prime and custom lending for residential owner occupier and investment properties SME loans • SME loans in Australia New Zealand mortgages • Prime and custom lending for re
Slide 36: Segment Performance
Segment Performance Closing Portfolio Net Contribution 5% 5% 6% 6% 6% 12% 10% 14% 11% 10% 35% 38% 39% 40% 41% 45% 54% 59% 60% 62% 60% 57% 55% 54% 53% 43% 36% 27% 29% 28% 2H23 1H24 2H24 1H25 2H25 2H23 1H24 2H24 1H25 2H25 Residential Secured Fin Services Residential Secured Fin Services Net Revenue 36
Slide 37: Reconciliation Statutory to Underlying
Reconciliation Statutory to Underlying $'m FY24 FY25 Statutory NPAT 115.3 133.3 IP amortisation 11.8 11.8 Statutory NPATA 127.1 145.1 MPRE sale-related adjustments Commission income (21.4) (1.7) Other income – gain on sale (0.8) (0.1) Commission expense 17.1 1.4 Personnel costs 0.9 - Other expenses
Slide 38: Statutory P&L
Statutory P&L $'m FY24 FY25 Interest income on financial assets measured at amortised cost 1,206.5 1,250.8 Interest income on financial assets measured at fair value 3.0 1.0 Effective yield fee income on financial assets measured at amortised cost 43.7 41.6 Other financial income 205.7 198.0 Other i
Slide 39: Disclaimer
Disclaimer The information provided in this presentation and any information supplied in connection with this No offer of securities presentation (“Presentation”) has been prepared by Liberty Financial Group Limited (ACN 125 611 574) This Presentation is not, and does not constitute, an offer to sel
Slide 40: Thank you
Thank you
Liberty Financial Group — FY2025 Earnings Presentation on 6ix