Slide 1: FY23 Results Presentation
RESIMAC GROUP LTD For personal use only FY23 Results Presentation Scott McWilliam, CEO Jason Azzopardi, CFO
Slide 2: FY23 highlights
Normalised NPAT1,2 Statutory (excl. FV gains / losses on derivatives) NPAT2 $73.7m $66.5m For personal use only FY23 Cost to Income Ratio3 Assets Under Management highlights. (Normalised) 43.6% $13.8b FY23 dividend Settlements fully franked $4.2b 8.0c 1 Excludes one-off item per reconciliation on sl
Slide 3: Economic environment
Economic environment Lower owner occupied and investor housing credit activity. RBA cash rate nearing peak. For personal use only Housing credit ($b)1,2 Cash rate (%) +13% 4.10 4.10 YoY 22.1 -20% 19.9 YoY 20.2 3.10 17.9 19.2 15.6 15.9 -15% 16.2 YoY 11.0 10.2 8.0 8.7 0.85 0.10 0.10 Owner Occupied Inv
Slide 4: Portfolio resilience
Portfolio resilience Risk of credit loss remains low despite higher arrears. For personal use only Repayment buffers1,2 Credit loss exposure based on arrears2,3 % of loans Loan value with Dynamic LVR >90% and no LMI ● Prime ● Specialist 3 33% $2.0m $0.6m $0.6m 23% 23% 2 # of Loans 1 9% 10% 1 2% 1 1
Slide 5: Home loan arrears
Home loan arrears Arrears increasing however portfolio quality is sound and remains conservatively provisioned. For personal use only SPECIFIC PROVISIONS2 $m JUN-21 DEC-21 JUN -22 DEC-22 JUN-23 90+ days arrears by product Prime 0.4 0.7 0.9 0.4 0.3 ● Prime ● Specialist 1.31% Specialist 3.0 3.1 1.5 1.
Slide 6: Performance highlights
For personal use only Performance highlights.
Slide 7: Financial results summary
Financial results Normalised NPAT excl. FV summary losses on derivatives $73.7m For personal use only FY23 1H23 2H23 FY22 CHANGE FY23 vs FY22 FINANCIAL PERFORMANCE Cost to income ratio NPAT (normalised)1 (excl. FV gains/losses on derivatives) $73.7m $40.7m $33.0m $86.0m (14%) 43.6% Driven by lower A
Slide 8: Settlements
Settlements Home loan settlements ($b) FY23 home loan For personal use only ● Prime ● Specialist settlements 2.1 0.8 1.7 $3.7b 0.7 0.6 1.6 0.7 1.9 1.7 1.7 1.4 1.4 FY23 asset finance 1.0 1.1 settlements 0.8 1H20 2H20 1H21 2H21 1H22 2H22 1H23 0.3 2H23 $0.5b Y23 home loan settlements $3.7b (-41% vs FY2
Slide 9: Home loan AUM
Home loan AUM Total home loan assets under Home loan AUM ($b) For personal use only management decreased 14% 11.3 12.4 12.9 13.8 14.6 15.3 14.7 13.1 to $13.1b. 0.3 0.3 0.3 0.4 0.4 5.9 0.3 0.5 5.0 6.1 Prime AUM decreased 0.5 3.5 3.8 5.8 3.2 23% to $7.0b driven by 2.9 low settlements combined 8.7 9.0
Slide 10: Home loan net interest margin
Home loan Net interest margin Home loan pricing margins decreased increased 5bps 258bps For personal use only Home loan net interest margin1 (bps) 258 Funding costs Interest rate swap increased receipts increased 11bps 9bps Driven by higher RMBS Reflecting steepening and warehouse pricing curve 181
Slide 11: Funding
Funding The Group continued to issue significant volume in RMBS in FY23 ($2.4b across Australia and New Zealand) albeit For personal use only lower than PCP reflecting utilisation of lower margin warehouses as settlements reduced. New asset finance warehouse secured with top tier global bank, provid
Slide 12: Home loan portfolio composition
Home loan portfolio Dynamic LVR bands2,3 composition % of total portfolio accounts For personal use only 53% 0-60% 64% Loan type Repayment type Weighted average portfolio LVR1,3 64% 26% 17% 39% Prime Specialist 63.0% 67.0% ● Owner ● P&I 60-70% 15% occupied ● I/O 61% 15% ● Investment 74% 20% 70-80% 1
Slide 13: Strategic focus and outlook
For personal use only Strategic focus and outlook.
Slide 14: Our key areas of focus
Our key areas of focus. For personal use only Asset Finance growth Home loan AUM Targeting $1b of settlements in FY24 driven by our new digital originations Pivoting to AUM growth platform and increased broker penetration. strategy in FY24. Operational efficiency Digital transformation Continue our
Slide 15: FY24 Outlook
FY24 OUTLOOK ess aggressive pricing from ADIs L and system activity to increase as DI v Non-Bank funding A advantages to decrease with TFF confidence returns. repayment being replaced by For personal use only higher wholesale funding COF, and BA Cash Rate peak expected in R APRA data indicating ADI
Slide 16: Financial results
For personal use only results. Financial
Slide 17: Consolidated statement of profit or loss
FY23 FY22 Consolidated Interest income Interest expense 902.1 (679.6) 490.7 (252.6) statement Net interest income 222.5 238.1 of profit or Fee and commission income 2.6 8.2 For personal use only Fee and commission expense (34.1) (40.5) loss ($m) Fair value (losses)/gains on derivatives Fair value wr
Slide 18: Consolidated statement of financial position
30-Jun-23 30-Jun-22 30-Jun-23 30-Jun-22 ● Assets ● Liabilities ● Equity Cash reconciliation ($m) Consolidated Cash and bank balances Trade and other receivables 1,085.4 3.5 932.8 5.7 Cash at bank and on hand Cash collections account 22.7 1,062.7 19.0 912.3 statement Loans and advances to customers 1
Slide 19: Consolidated statement of cash flows
FY23 FY22 ● Operating activities ● Investing activities ● Financing activities Consolidated Interest received Interest paid 900.8 (658.4) 500.5 (227.2) statement Receipts from loan fees and other income Payments to suppliers and employees 28.9 (160.9) 38.9 (180.7) of cash Receipts/(payments) of net
Slide 20: Scott McWilliam, CEO
Scott McWilliam CEO For personal use only Scott is responsible for managing the overall operations of the organisation, its people and resources, and ensures the implementation of the strategy agreed with the Board. Scott has over 25 years experience in the financial services sector. This includes h
Slide 21: Jason Azzopardi, CFO
Jason Azzopardi CFO For personal use only Jason joined the Resimac Group in July 2018 as Chief Financial Officer. Prior to Resimac, Jason held senior finance roles in private equity in London. Since relocating to Australia in 2011, Jason’s extensive retail banking experience includes senior leadersh
Slide 22: Environmental, social & governance
Environmental, social & governance For personal use only As an Australian ASX-listed entity with several licences providing funding for a number of Australian and New Zealand communities, Resimac is focused on integrating sustainability into all aspects of our business. Resimac acknowledges that its
Slide 23: Environmental
In conducting our business, we The social factors we consider Resimac has a strong Environmental Social Governance consider environmental factors as a business include human governance structure in such as climate change, energy capital (remuneration practices, place to ensure all regulatory efficie
Slide 24: Important notice & disclaimer
Important notice OUR VALUES & disclaimer For personal use only The information in this presentation provides an overview of the results for the year ended 30 June 2023. It is general Quality background information about the activities of Resimac Group Ltd ('Resimac') and is current as at the date of
Slide 25: Thank you
For personal use only Thank you. Resimac Group Ltd ABN 55 095 034 003 Australian Credit Licence 247829 ASX:RMC