Pepper Money Ltd · ASX:PPM
Pepper Money — H1 2025 Earnings Presentation
31 slides from Pepper Money's earnings presentation, Aug 21, 2025
Slide 1: 2025 Half Year Results
INVESTOR PRESENTATION 2025 Half Year Results 21 August 2025
Slide 2: Acknowledgement of Country
PEPPER MONEY Acknowledgement of Country Pepper Money acknowledges Australia’s First Nations people as the Traditional Custodians of the land and their continuing connection to country, sea and water. We pay respect to their Elders past and present. 2 © Pepper Money © Pepper MoneyLimited. Limited.
Slide 3: Today's Presenters
PEPPER MONEY Today’s Presenters Mario Rehayem Therese McGrath Chief Executive Chief Financial Officer Officer Joined Pepper Over 20 years Previously held senior Joined Pepper Over 25 years Previously held senior Money in 2011, of experience positions in APRA Money in 2018 of international positions
Slide 4: 1H 2025 | Performance highlights
PEPPER MONEY 1H 2025 | Performance highlights Strong Returns Total Originations Mortgages Asset Finance Double $4.5bn $2.8bn $1.7bn Profitability Digit Volume Growth 38% on PCP 53% on PCP 19% on PCP NPAT¹ Profit Pre-Tax and Loan Loss Expense Total AUM Mortgages Asset Finance Servicing $47.0m $109.2m
Slide 5: Volume growth
BUSINESS UPDATE Volume growth Total Applications¹ ($bn) Total Originations ($bn) Total AUM² ($bn) 1.4 Half Year Full Year Half Year Full Year 30 Jun 31 Dec 1.4 21.0 $6.8bn 20.5 1.2 1.2 $20.1bn 20.0 1.0 1.0 $4.5bn 19.5 $11.4bn 0.8 $5.2bn 19.0 0.8 $19.3bn $19.1bn $7.0bn 18.5 0.6 0.6 18.0 0.4 $3.3bn 17
Slide 6: Mortgages | 1H 2025
BUSINESS UPDATE Mortgages | 1H 2025 Volume Income Credit Quality Originations by Product ($bn) Weighted Interest Rates¹ (%) Loan Loss Provision ($m) 2.8 31.5 2.3 0.1 +53% PCP 1.8 3.0 21.2 0.1 0.8 1H 2024 2H 2024 1H 2025 16.8 0.1 0.9 (31)% 28.5 2.2 3.1 Specific 1.0 1.3 1.9 (24)% Prime 7.7% 7.5% 7
Slide 7: Asset Finance | 1H 2025
BUSINESS UPDATE Asset Finance | 1H 2025 Volume Income Credit Quality Originations by Product ($bn) Weighted Interest Rates¹ (%) Loan Loss Provision ($m) 1.4 1.7 107.9 1.5 +19% PCP 89.3 95.7 0.8 1H 2024 2H 2024 1H 2025 39.2 0.7 0.7 +23% 37.4 42.1 Specific 0.4 0.4 0.4 8% 68.7 Tier A 9.6% 9.3% 8.8%
Slide 8: Loan & Other Servicing | 1H 2025
BUSINESS UPDATE Loan & Other Servicing | 1H 2025 Benefits of Loan & Targeted Whole Administration Loan Portfolio Other Servicing Segments Loan Sales of Loan Portfolios Acquisition Capital-light revenue stream Closing CAGR AUM ($bn) 111% Risk reduced – no credit losses PCP 90% 4.3 Defensive annuity s
Slide 9: Funding
BUSINESS UPDATE Warehouses Securitisation Whole Loan Sales / Whole Loan Sales Private Term issuances Funding $8.5bn⁷ $11.5bn³ total capacity 3 Public (PRS, Pepper A$12.9 bn+ total funding⁷ Across 33 transactions Platforms⁴ Prime, Sparkz) 26 (includes all 4 major 24 counter-parties funders domestic b
Slide 10: Scaled technology, process improvements – efficient growth
BUSINESS UPDATE Scaled technology, process improvements – efficient growth Credit: Settlements: Servicing: # Applications per Credit FTE¹ # Origination per Settlement FTE # AUM per Servicing² FTE 74% 109% 142 33% 117 127 325 110 272 82 208 223 Mortgages 156 1,169 1,197 1,161 1,065 1H 2023 2H 2023 1H
Slide 11: Financial Performance
FINANCIALS Financial Performance Volume Income Expenses / FTE Profit Originations ($bn) Net Interest Margin (%) Total Expenses ($m) Profit pre-Tax and Loan loss expense ($m) +38% 2% +1% +19% 2.73% 8% +8% 4.5 2.52% 2.58% 3.8 119.6 127.1 116.7 1.92% 2.03% 1.98% 3.3 13.8 15.3 12.3 1.7 9.8 1.5 1.72% 9.6
Slide 12: NIM Movement
FINANCIALS Total +6bps NIM Movement +11bps (5)bps 0.15% 0.02% (0.06%) (0.35%) 0.15% 0.15% Total NIM increased by 6 bps versus PCP 1.92% 2.03% 1.98% driven by portfolio mix, stabilisation of swap rates / BBSW and improved funding margins 1H 2024 Customer rate¹ BBSW / Funding 2H 2024 Customer rate¹ BB
Slide 13: Credit Performance | Loan Loss Provisions
FINANCIALS Credit Performance | Loan Loss Provisions Movement in Loan Book and Coverage Ratio Mortgages Collective Specific Movement versus PCP AUM Total Provisions Provisions¹ Provisions Coverage Ratio Collective Provisions Specific Provisions Coverage Ratio $ Billion $ Million Decreased by $14.8 m
Slide 14: Credit Performance | Loan Loss Expense
FINANCIALS Credit Performance | Loan Loss Expense Half Year Mortgages $ Million 1H 2025 2H 2024 1H 2024 90+ Day Arrears¹ as % of AUM Mortgages 1.89% 1.27% 1.30% 1.48% 1.47% 0.88% 0.86% 0.99% Specific (2.7) (1.1) (3.2) Collective³ 5.3 9.6 0.4 Mortgages loan loss expense 2.6 8.5 (2.8) Mortgages (exclu
Slide 15: Total Expenses
FINANCIALS Half Year % 1H 2025 vs Total Expenses $ Million 1H 2025 2H 2024 1H 2024 2H 2024¹ 1H 2024¹ Employee benefits expense (63.5) (61.0) (65.3) (4)% 3% Marketing expense (6.7) (7.8) (7.6) 14% 11% Technology expense (13.2) (13.1) (11.5) (1)% (15)% General and admin expense (8.6) (11.4) (9.1) 25%
Slide 16: Profit & Loss
FINANCIALS Half Year % 1H 2025 vs Profit & Loss $ Million 1H 2025 2H 2024 1H 2024 2H 2024 1H 2024 Interest income 637.5 703.7 732.4 (9)% (13)% Interest expense (480.2) (533.2) (561.5) 10% 14% Net interest income 157.3 170.4 170.9 (8)% (8)% Lending fee income 32.5 32.3 33.4 1% (2)% Lending expense (1
Slide 17: Financial Metrics
FINANCIALS Half Year % 1H 2025 vs 1H 2025 2H 2024 1H 2024 2H 2024 1H 2024 Financial Metrics Volume ($ Billion) Originations – Mortgages 2.8 2.3 1.8 21% 53% Originations – Asset Finance 1.7 1.5 1.4 15% 19% Total Originations 4.5 3.8 3.3 19% 38% AUM lending – Mortgages (closing) 9.5 10.2 11.3 (8)% (16
Slide 18: Capital Management
FINANCIALS Effective execution of our capital Capital Management | 1H 2025 management strategy supports higher shareholder returns Consistent reinvestment – Special Interim Share Corporate Debt technology and marketing Dividend Dividend buy back Facility $55.5m 6.4 cps +10% $27.5m Liquidity – covera
Slide 19: Sources and Uses of Cash
FINANCIALS Six months ended Sources and Uses of Cash $ Million 30 Jun 2025 Trust income 136.9 Corporate Cash Flow Origination fees 26.8 Key Movements: 31 December 2024 to 30 June 2025 Whole Loan Sale premium 18.5 Servicing and other income 7.5 Inflow Trust income Total income 189.7 Interest income d
Slide 20: Balance Sheet
FINANCIALS Balance as at Balance Sheet 30 Jun 2025 31 Dec 2024 30 Jun 2024 $ Million Cash and cash equivalents 999.9 1,226.2 1,106.3 Receivables 16.5 13.9 15.7 Key Movements: 31 December 2024 to 30 June 2025 3.8 21.0 64.6 Derivative financial assets Loans and advances 15,892.8 15,991.8 17,120.5 Asse
Slide 21: Outlook
PEPPER MONEY Outlook Conditions are improving and outlook is looking positive… Pepper Money is best positioned to capture growth… Consumer confidence Mortgages Asset Finance continues to customers customers still remain resilient experiencing Distribution New products – AI and technology improve: fo
Slide 22: Questions & Answers
Questions & Answers
Slide 23: Thank you
Thank you on behalf of all of Pepper Money Pepper Money Limited ABN 55 094 317 665. Australian Finance Services Licence 286655; Australian Credit Licence 286655 Pepper Asset Finance Pty Limited ACN 165 183 317; Australian Credit Licence 458899 © Copyright Pepper Money Limited. All rights reserved.
Slide 24: Appendices
Appendices
Slide 25: Addressable Market
APPENDIX Addressable Market June 2025 Mortgages Asset Finance $2,797bn $248bn Total Addressable ¹ Market (AUM) Conforming: 88% Consumer: $71bn⁴ Non-Conforming: 12%2 Commercial: $175bn⁵ ~0.3% ~2.5% Pepper Money’s ³ ⁶ Market Share (closing AUM) Consumer: ~2.5% Commercial: ~2.6%⁷ Targeted • First home
Slide 26: Systems growth
June 2025 Mortgages Asset Finance APPENDIX Systems growth $3,045bn $2,797bn ¹ $248bn Total Addressable Conforming: 88% Consumer: $76bn³ Market (AUM) Non-Conforming: 12%² Commercial: $172bn⁴ Mortgages⁵ AUM Walk Asset Finance AUM Walk Closing AUM (A$bn) Closing AUM (A$bn) 3.6x 21.4x System System Grow
Slide 27: Portfolio performance
APPENDIX Portfolio performance Mortgages Asset Finance Loan & Other Servicing Segment Originations 1H 2025 $2.8 billion $1.7 billion (vs PCP / 2H 2024) +53% PCP | +21% 2H 2024 +19% PCP | +15% 2H 2024 Originations Mix Prime Near Prime Specialist Tier A Tier B Tier C 1H 2025 70% 27% 3% 75% 22% 3% AUM
Slide 28: Glossary & Disclaimer
Glossary & Disclaimer
Slide 29: Glossary of Terms
PEPPER MONEY Glossary of Terms AUM – Lending (closing): Assets Under Management Net interest income: Interest charged on loans provided to 90+ days past due % closing Lending AUM: Loans where originated and serviced (securitised and Pepper Money balance borrowers (Mortgages and Asset Finance), incom
Slide 30: Disclaimer
PEPPER MONEY Disclaimer Summary information This Presentation contains summary information about Pepper Money Limited (ACN 094 317 665) (Pepper Money) and its Forward-looking information activities and is current only as at the date of this Presentation (unless specified otherwise). The material in
Slide 31: Pepper Money Limited licence information
Pepper Money Limited ABN 55 094 317 665. Australian Finance Services Licence 286655; Australian Credit Licence 286655 Pepper Asset Finance Pty Limited ACN 165 183 317; Australian Credit Licence 458899 © Copyright Pepper Money Limited. All rights reserved.