Resimac Group Limited · ASX:RMC
Resimac — H1 2025 Earnings Presentation
35 slides from Resimac's earnings presentation, Feb 25, 2025
Slide 1: 1H25 Results Presentation
RESIMAC GROUP LTD For personal use only 1H25 Results Presentation Susan Hansen, Interim CEO James Spurway, CFO Andrew Marsden, CTO
Slide 2: Today's presenters
Today's presenters. For personal use only Susan Hansen James Spurway Andrew Marsden | Interim Chief Executive Officer | Chief Financial Officer | Chief Treasury Officer Susan was appointed Interim CEO of Resimac James joined Resimac in May 2024 as CFO. Andrew joined Resimac’s Treasury team in in Jul
Slide 3: Our mission
Home Loan Asset Finance For personal use only Prime and Investment Specialist in Secured Equipment Business and Novated non-conforming property helping the business lending consumer leases Our home loans lender self-employed loans auto ENABLED BY mission. Core Competencies Strategy & Execution Our t
Slide 4: 1H25 highlights
Normalised Normalised Statutory operating profit1,2,3 NPAT1,2 NPAT $35.9m $15.0m $13.5m For personal use only vs. 2H24 $29.9m vs. 2H24 $17.1m vs. 2H24 $14.5m 1H25 Cost to income ratio1,2 Impairment expense Collective provision balance highlights. (Normalised) 53.1% $14.8m $54.3m vs. 2H24 57.9% vs. 2
Slide 5: 1H25 performance highlights
Growth in Asset Finance Number of account applications in Asset Finance business grew +10% in 1H25 with a corresponding 9% increase in AUM to $1.2b. Strong momentum in application and origination volumes continue to be maintained with AUM set to be bolstered by approximately $1.5b with the acquisiti
Slide 6: Westpac auto portfolio acquisition
Westpac auto portfolio acquisition. For personal use only Diversifying Driving growth Committed Acquired a list New novated Creating value the income with ~$1.5b to measured of 100,000 new and consumer with Operating and asset base addition to growth in Asset customers with auto footprint Profit for
Slide 7: Financial results overview
For personal use only Financial results overview.
Slide 8: 1H25 financial snapshot
1H25 financial snapshot. AUM continued to grow in both Operating profit growth driven by Provisioning increased due to increase NPAT down HoH reflecting For personal use only Home Loans and Asset Finance, increased AUM (income) and continued in arrears, financial assistance higher impairment expense
Slide 9: Financial results summary
Financial results Operating profit summary. $35.9m 20% improvement on 2H24 For personal use only 1H25 2H24 1H24 CHANGE CHANGE 1H25 vs. 2H24 1H25 vs. 1H24 FINANCIAL PERFORMANCE Normalised NPAT excl. Normalised operating income ($m) 76.6 71.0 77.8 5.6 (1.2) FV movement on derivatives Normalised opera
Slide 10: Profitability
Profitability. Key NPAT profit drivers Group NPAT (Normalised, $m)1,2 Walk: 2H24 to 1H25 For personal use only 1 H25 average Home Loan 3.1 0.3 AUM $0.2b higher than 2H24. 2.2 IM compression of 5bps to N 17.1 (1.1) 148bps in 1H25 attributed to an AUM growth focus 15.0 in Home Loans and Asset (6.6) Fi
Slide 11: Portfolio margin
Portfolio margin. Group margin - compression of 5bps, driven by lower yield in line Home Loan net interest margin1 (bps) For personal use only with AUM growth strategy in Home Loans and Asset Finance. 134 2 7 128 (8) (7) Dec-24 exit Home Loan margin - compression of 6bps, driven by lower yield in NI
Slide 12: Funding
Funding. The Group issued $2.0b in RMBS securities. For personal use only August 2024 - Non-conforming RMBS priced +135bps senior margin. October 2024 - Prime RMBS priced +110bps senior margin. Funding markets remain conducive for AUM growth. Australia RMBS & ABS issuance term profile ($b) Australia
Slide 13: Loan settlements
Loan settlements. Home Loan Asset Finance For personal use only Maintaining momentum in a competitive landscape. Organic growth continuing to be the driver of AUM growth. 1H25 1H25 Increase in active 1H25 1H25 Number of account settlements applications brokers submitting apps settlements application
Slide 14: Assets under management (AUM)
Assets under management (AUM). Home Loan Asset Finance For personal use only Portfolio continues to build momentum in a competitive Portfolio continues to experience strong growth supporting the landscape. Group’s AUM diversification strategy. 1H25 1H25 1H25 vs. 2H24 1H25 1H25 1H25 vs. 2H24 closing
Slide 15: Arrears
Arrears. Home Loan Asset Finance For personal use only 90+ days arrears by product (as % closing AUM)1 90+ days arrears (as % closing AUM) 2.32% 1.66% 1.79% 2.03% 0.46% 1.53% 0.42% 1.62% 0.36% 0.99% 1.40% 1.24% 0.81% 0.27% 0.27% 0.59% 0.69% 0.45% 0.45% 0.21% 0.20% 0.16% 0.38% 0.49% 0.11% 0.41% 0.46%
Slide 16: Arrears staging
Arrears staging. Home Loan Asset Finance For personal use only igher number of customers applying for financial assistance H Asset finance delinquencies have increased in line with the industry. due to cost of living / higher interest rates increasing Stage 2 et write-offs were $6.8m in 1H25 predomi
Slide 17: Prudent loan provisioning
Prudent loan provisioning. Home Loan Asset Finance For personal use only ollective provision increased by $1.3m reflecting rise in arrears C ollective provision increased by $6.9m primarily reflecting the C driven by more customers on financial assistance arrangements. increase in AUM, arrears and n
Slide 18: Questions and answers
For personal use only Questions and answers.
Slide 19: Thank you
For personal use only Thank you. Resimac Group Ltd ABN 55 095 034 003 Australian Credit Licence 247829 ASX:RMC
Slide 20: Appendices
For personal use only Appendices.
Slide 21: Strategic focus and outlook
For personal use only Strategic focus and outlook.
Slide 22: FY25 outlook
Competitive landscape Broker experience Funding & capital Competition to continue Continued focus on Funding and capital to normalise amongst removing friction positioned to leverage the banks, creating within the originations opportunities and opportunities in the and credit approval support AUM gr
Slide 23: FY25 priorities
Continue digital Developing our transformation, automation, people, building and For personal use only and operational efficiencies. retaining talent. Diversification into Asset Security, FY25 Finance by organic growth and potential acquisitions. compliance and governance. priorities. Focus on broke
Slide 24: Home Loan: building momentum
Home Loan: building momentum. Volume Portfolio composition Weighted average Dynamic LVR bands2,3 portfolio LVR1,3 % of total portfolio accounts For personal use only Settlements ($b) Loan type 2.4 2.4 2.4 1.9 1.4 Prime 63% 63.9% 1.6 1.3 41% 1.3 1.1 0-60% 59% 1.0 ● Owner occupied 59% 1.1 1.0 ● Invest
Slide 25: Asset Finance: strong growth
Asset Finance: strong growth. Volume Composition Credit quality For personal use only Settlements ($b) Settlements mix at 1H25 close Loan loss provisions ($m) 0.44 16.4 0.39 0.38 5% 9.4 0.27 ● Auto 21% ● Equipment 41% ● Secured business 2.2 1.0 ● Other 0.12 2H24 1H25 33% ● Collective ● Specific 1H23
Slide 26: Consolidated statement of profit or loss
1H25 1H24 Interest income 516.1 504.7 Interest expense (437.3) (412.2) Net interest income 78.8 92.5 Fee and commission income 5.7 2.6 Consolidated For personal use only Fee and commission expense (8.5) (16.7) Fair value gains on derivatives - 0.4 statement Fair value losses on derivatives (2. 9) (8
Slide 27: Consolidated statement of financial position
31-Dec-24 30-Jun-24 31-Dec-24 30-Jun-24 ● Assets ● Liabilities ● Equity Cash reconciliation ($m) Cash and bank balances 910.8 871.0 Cash at bank and on hand 37.8 53.9 Trade and other receivables 7.0 5.1 Cash collections account 872.9 817.1 Loans and advances to customers 14,333.4 14,097.5 Cash at ba
Slide 28: Consolidated statement of cash flows
1H25 1H24 ● Operating activities ● Investing activities ● Financing activities Interest received 535.3 511.5 Interest paid (445.1) (410.7) Receipts from loan fees and other income 11.9 12.4 Payments to suppliers and employees (98.9) (84.0) Consolidated (Payments)/receipts of net loans to/from borrow
Slide 29: Economic environment
Economic environment. Robust house price growth amid stabilising macroeconomic conditions with reducing inflation. For personal use only Housing credit ($b)1,2 Cash rate (%) +15% 4.35 4.35 4.35 +13% YoY YoY 60.8 58.1 54.8 48.7 50.8 +22% 50.5 48.8 44.1 YoY 32.4 4.10 30.8 26.5 22.8 Owner occupied Inve
Slide 30: Environmental, social and governance
For personal use only Environmental, social and governance
Slide 31: Environmental, social & governance
Environmental, social & governance. For personal use only As an ASX-listed entity funding Australian The ESG Committee aligns its focus with the communities, Resimac integrates ESG into United Nations Sustainable Development Goals, all aspects of our business. We recognise concentrating on: that res
Slide 32: Key ESG pillars
Key ESG pillars. For personal use only Resimac’s overarching Environmental, Social and Governance (ESG) purpose comprises the following key pillars: Passion Inclusion Accountability We incorporate We all play a part in We ensure our sustainability into understanding our services are ethical our orga
Slide 33: Environmental. Social. Governance.
Environmental. Social. Governance. We consider climate change, We focus on human capital Resimac’s governance energy efficiency, carbon (remuneration, diversity, equity, structure incorporates footprint reduction, waste and inclusion), human rights, a compliance and risk For personal use only treatm
Slide 34: Charitable partnerships aligned with our ESG goals
Charitable partnerships aligned with our ESG goals. For personal use only Sanctuary Housing: Resimac Carbon Positive: Resimac is funding community provides both financial and forests all over the country: volunteer support to Sanctuary Housing, a not-for-profit crisis Planting trees in urban centres
Slide 35: Important notice & disclaimer
Important notice Our & disclaimer. values. For personal use only The information in this presentation provides an overview of the results for the period ended 31 December 2024. It is general background information about the activities of Resimac Group Ltd ('Resimac') and is current as at the date of