Resimac Group Limited · ASX:RMC
Resimac — H1 2021 Earnings Presentation
23 slides from Resimac's earnings presentation, Feb 25, 2021
Slide 1: Resimac Group Ltd 1H21 Results Presentation
For personal Use Oonily =< resimac Resimac Group Ltd 1H21 Results Presentation
Slide 2: Performance Highlights
Performance Highlights SCOTT MCWILLIAM, CEO JASON AZZOPARDI, CFO
Slide 3: Our 1H21 performance highlights
STATUTORY NORMALISED1 NET INTEREST COST TO INCOME For personal use only NPAT NPAT INCOME RATIO (NORMALISED) Our 1H21 $50.5m $50.5m $122.1m 31.1% performance p 86% p 88% p 45% q 1,100bps highlights HOME LOAN HOME LOAN TOTAL INTERIM SETTLEMENTS AUM2 AUM DIVIDEND3 (v 1H20) $2.1b $12.9b $15.1b 2.4c q 9%
Slide 4: Our financial results summary
Our financial results summary For personal use only 1H21 vs 1H20 FINANCIAL PERFORMANCE 1H21 1H20 % change NPAT (statutory) p $50.5m $27.2m 86% NPAT (normalised) p $50.5m $26.9m 88% Normalised NPAT increased 88% driven by higher Assets Under Management (AUM) and Net Cost to income ratio q 31.1% 42.
Slide 5: Our earnings growth
Normalised NPAT increased 88% driven by higher net interest income Net interest income increased 45% driven by higher margins and assets under management For personal use only growth Our Net fee and commission expense increased 9% driven by higher broker commissions on increased AUM earnings
Slide 6: Our key metrics
Our key metrics For personal use only Revenue and earnings ($m) Cost to income ratio (%) 60 140 70% 122.1 60% 57.8% 120 55.4% 50 104.3 100 50% 40 84.3 42.1% 80 40% 34.6% 30 62.8 31.1% 55.1 60 30% 20 40 20% 10 20 10% 14.5 16.6 26.9 28.8 50.5 - - - 1H19 2H19 1H20 2H20 1H21 1H19 2H19 1H20 2H20 1H21 NPA
Slide 7: Our key metrics
Our key metrics For personal use only Home loan settlements ($b) Home loan AUM ($b) 14 12.9 12.4 2.5 0.4 12 11.3 0.5 10.2 0.5 2.0 0.7 0.6 3.5 9.4 3.2 10 0.6 0.7 0.6 2.9 0.5 8 2.6 1.5 2.3 0.6 $b $b 6 1.0 1.7 1.7 8.7 9.0 1.5 1.4 4 7.9 6.5 7.0 0.5 1.1 2 - - 1H19 2H19 1H20 2H20 1H21 1H19 2H19 1H20 2H20
Slide 8: Our group margins
Our group margins For personal use only Group net interest margin (bps) Home loan pricing decreased 20bps reflecting March 2020 RBA rate cut passed on to customers (11bps), and back book run-off (9bps) Funding costs increased 7bps driven by higher warehouse and RMBS pricing during height of COVI
Slide 9: Our funding program
Our funding program For personal use only The Group issued $3.3 billion of Australian and NZ Prime and Specialist RMBS in 1H21 RMBS and warehouse pricing increased materially in mid-2020, recently returning to below pre COVID-19 levels Warehouse capacity increased during 1H21 providing funding
Slide 10: Our home loan portfolio performance
Our home loan HOME LOAN SPECIFIC Jun 2019 Dec 2019 Jun 2020 Dec 2020 portfolio performance PROVISIONS $m For personal use only Prime 0.35 0.43 0.61 0.57 Specialist 3.26 3.40 3.37 3.61 Legacy 1.50 1.98 1.93 1.86 Specialist and Prime arrears remain below pre COVID-19 Other (incl. NZ) 0.47 0.51 0.15
Slide 11: Our home loan portfolio composition
Our home loan portfolio composition For personal use only Weighted average portfolio LVR Prime 66.5% | Specialist 68.9% Weighted average portfolio dynamic LVR* Prime 65.9% | Specialist 70.0% Loan purpose Loan type Geographic location Security 5% 6% 5% 8% 16% 33% 36% 40% 18% 60% 67% 78% 28% Inves
Slide 12: COVID-19 Impact
COVID-19 Impact SCOTT MCWILLIAM, CEO JASON AZZOPARDI, CFO
Slide 13: Hardship analysis summary
Resimac is pleased to report significant improvement in the number of customers in hardship payment deferrals For personal use only Approximately 500 customers representing $294m of loans remain in hardship payment Hardship deferrals at 31 December 2020 Of the $294m of loans in hardship paymen
Slide 14: Hardship analysis
Hardship analysis For personal use only Active payment deferrals at 30 Jun 20201 Active payment deferrals at 31 Dec 20201 35,000 33,200 25% 40,000 4.0% 22% 33,847 30,000 35,000 3.47% 3.5% 20% 25,000 30,000 3.0% 21,317 15% 25,000 2.5% 20,000 21,746 # 20,000 2.0% 15,000 1.55% 9% 10% 10% 15,000 1.5% 10
Slide 15: Strategic Priorities
Strategic Prionties SCOTT MCWILLIAM, CEO
Slide 16: Strategic priorities
Strategic priorities For personal use only End-to-end Digitalisation Utilise modern technologies and platforms to automate and build scale, drive efficiency and improve end-to-end customer experience. Home Loans The housing lending market in Australia and New Zealand combined is greater than $2 tril
Slide 17: Financial Results
Financial Results JASON AZZOPARDI, CFO
Slide 18: Consolidated Statement of Profit or Loss
CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE PERIOD ENDED 31 DECEMBER 2020 $m 1H21 1H20 Interest income 235.6 229.1 Interest expense (113.5) (144.8) For personal use only Net interest income 122.1 84.3 Fee and commission income 4.9 6.2 Fee and commission expense (17.8) (18.0) Other income 1.7 0.
Slide 19: Consolidated Statement of Financial Position
AS AT 31 DECEMBER 2020 CONSOLIDATED STATEMENT OF FINANCIAL POSITION $m 31 DEC 20 30 JUN 20 Cash reconciliation $m 31 DEC 20 30 JUN 20 Cash and bank balances 537.6 366.0 Cash at bank and on hand 28.6 27.8 Trade and other receivables 5.1 6.0 Cash collections account 507.5 336.7 For personal use only L
Slide 20: Consolidated Statement of Cash Flows
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 DECEMBER 2020 $m 1H21 1H20 Interest received 239.8 234.4 OPERATING ACTIVITIES Interest paid (106.3) (137.5) For personal use only Receipts from loan fees and other income 23.5 25.4 Payments to suppliers and employees (83.9) (81.0) Payments
Slide 21: Scott McWilliam and Jason Azzopardi
Scott McWilliam Jason Azzopardi Chief Executive Officer For personal use only Chief Financial Officer Scott is responsible for managing Jason joined the Resimac Group in the overall operations of the July 2018 as Chief Financial Officer. organisation, its people and Jason is also the Group Executive
Slide 22: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER The information in this presentation provides an overview This presentation has not been subject to auditor review of the results for the period ended 31 December 2020. It and all dollar values are in Australian dollars ($AUD), For personal use only is general backgroun
Slide 23: Thank you
Thank you a resimac AjUOeSN [euOsied 105