Liberty Financial Group Ltd · ASX:LFG
Liberty Financial — H1 FY2026 Earnings Presentation
38 slides from Liberty Financial's earnings presentation, Feb 23, 2026
Slide 1: Liberty Financial Group FY26 Half Year Results
Liberty Financial Group FY26 Half Year Results 23 February 2026
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 |4
Slide 5: Overview
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Slide 6: Overview
Overview Continued profit growth momentum % NIM supported by positive funding markets Lower impairment expense as credit risk moderates Effective cost management lowers cost to income ratio Record originations from improved borrower demand Investment grade balance sheet with 13.8% cash ROE Acquisiti
Slide 7: Financial Highlights
Financial Highlights % Underlying NPATA Net revenue NIM $82.3m ($73.6m) $310.8m ($302.1m) 2.47% (2.50%) +12% +3% (3bps) BDD Cost to income Distribution 5bps (10bps) 26.4% (27.3%) 15c (12c^) (5bps) (90bps) +25% |7 *Balances represent: 1H26 (2H25) change between the periods ^Distribution represents: 1
Slide 8: Operating Highlights
Operating Highlights Financial assets New assets originated Impaired loans $14.8b ($14.7b) $3.1b ($2.3b) $283m ($341m) +1% +35% (17%) Average FTE Staff Broker NPS Customer NPS 498 (520) 90 (83) 58 (58) (4%) +8% (-%) |8 *Balances represent: 1H26 (2H25) change between the periods
Slide 9: Results Analysis
02 Results Analysis
Slide 10: Profit Performance
Profit Performance Underlying NPATA ($m) Statutory NPATA ($'m) $82.3 $82.3 $71.4 $73.6 $71.5 $73.6 1H25 2H25 1H26 1H25 2H25 1H26 Increase in Underlying NPATA ( 1H26 v 2H25) explained by Impact of sale of MPRE • Lower impairment expense as credit risk moderates ($6m) • 1H25: higher statutory NPATA by
Slide 11: Profit Drivers
Profit Drivers Total Revenue ($'m) Loan Impairment (bps) $759.8 10 $731.1 $712.2 9 Total revenue reduced 3% (1H26 Impairment lower 5bps (1H26 v v 2H25) and 6% (1H26 v 1H25) 2H25) and 4bps (1H26 v 1H25) driven by lower yield following 5 with stable realised losses and pass through of RBA rate lower p
Slide 12: Revenue
Revenue Average Assets ($'b) Lending Income ($'m) $14.7 $14.7 $14.7 Average assets stable as $46 $46 commercial growth offsets $43 reduction in residential and motor Record new originations $3.1b in Increase in income reflects 1H26 (v $2.3b 2H25 and $2.8b increase in new loan origination 1H25) as de
Slide 13: Funding
Funding Cost of Funding Term Funding ($b) 6.16% 5.86% 10.3 1.5 9.7 2.7 9.6 5.39% 1.78% 1.71% 1.68% (2.1) (2.8) 4.38% 4.15% 3.71% New New 1H25 2H25 1H26 Dec-24 Repaid Issues Jun-25 Repaid Issues Dec-25 173bps 122bps 167bps 114bps 163bps Funding benchmark 371bps in 1H26 (decrease of 44bps v 2H25 1H26
Slide 14: Delinquency
Delinquency +30 Day Delinquency +90 Day Delinquency 4.08% 2.32% 3.85% 2.06% 3.28% 1.91% 1H25 2H25 1H26 1H25 2H25 1H26 Early-stage delinquency improved in 1H26 as customers used Late-stage delinquency improved in 1H26 as customers used additional capacity from rate reductions to reduce arrears additi
Slide 15: Loss Provisions
Loss Provisions Portfolio by Stage ($'m) Collective Provision Provisions by Nature ($'m) $14,814 by Stage ($'m) $14,799 $14,667 $97 $94 $97 $70 $58 $60 Increase in 1H26 balance as a $14,103 $14,205 $58 $60 result of the acquisition of Moula $13,945 $70 $50 ($7m) $43 $47 Excluding Moula, decrease in
Slide 16: Loan Impairment
Loan Impairment 1H25 (9 bps) 1H26 (5 bps) 15 13 12 9 -17 -3 -11 -4 Specific Specific Specific Specific Realised Provision Provision Collective Realised Provision Provision Collective Loss (Release) (Increase) Provision Loss (Release) (Increase) Provision 2H25 (10 bps) 17 13 Impairment expense 5bps i
Slide 17: Operating Expenses
Operating Expenses Operating expenses ($m) 1H25 2H25 1H26 Personnel 45 48 45 Cash expense stable across periods Other 36 34 37 Lower cost to income over the periods due to higher net revenue supported by Cash expenses 81 82 82 stable operating expenses Lower personnel costs in 1H26 reflects IP amort
Slide 18: Distribution and Dividends
Distribution and Dividends 52c 20c Interim Q1 distribution 7.5 cents paid in Oct-25 Interim Q2 distribution 7.5 cents paid in Dec-25 LTM distribution and special dividends (50 cents) 25c equates to 12.1% yield based on security price of 20c $4.14 (31-Dec-25) 13c 15c Interim Q3 distribution 7.5 cents
Slide 19: Financial Position
Financial Position $m Jun-25 Dec-25 Cash 888 923 Financial assets 14,660 14,802 Strong liquidity position with total ($9.4b) and available ($4.3b) limits at 31-Dec-25 Loans to related parties 77 - Stable balance sheet and leverage Other assets 618 643 Underlying cash ROE 13.8% Investment grade ratin
Slide 20: Business Update
03 Business Update
Slide 21: Business Update
Business Update Record group new loan origination Higher residential originations offset by elevated discharges Commercial lending and portfolio growth remains strong Competition continues to impact motor finance Fin Services portfolio growth despite challenging environment Acquisition of Moula to d
Slide 22: Segment Loan Origination
Segment Loan Origination Residential ($'m) Secured ($'m) $1,851 $1,006 $1,701 $874 $1,351 $753 Growth in loan origination reflects Growth in new residential loan record SME and SMSF loan origination given strong demand origination 1H25 2H25 1H26 1H25 2H25 1H26 Fin Services ($'m) Group ($'m) $241 $3,
Slide 23: Segment Loan Portfolio
Segment Loan Portfolio Residential ($'m) Secured ($'m) $7,949 $5,848 $5,910 $6,124 Continued strong SME and SMSF $7,752 Reduced portfolio as higher $7,635 portfolio growth more than offset discharges and amortisation the small decline in the motor exceeded new loan origination finance portfolio Annu
Slide 24: Relative Value Drivers
Relative Value Drivers 2.47% Net Interest Margin Cost to Income Ratio 64.7% 63.0% 2.04% 2.05% 58.7% 1.94% 1.92% 53.2% 53.6% 1.74% 50.5% 1.64% 49.6% 1.55% 1.54% 44.8% 45.9% 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 25: Outlook
04 Outlook
Slide 26: Outlook
Outlook Environment supports continued differentiation % Increasing interest rates may impact delinquency Favourable funding markets will continue to support NIM Continuing NIM, CTI and ROA peer outperformance Automation to maintain leading operational efficiency Ongoing investment in improving digi
Slide 27: Summary
05 Summary
Slide 28: Summary
Summary Continued profit growth momentum % 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 cust
Slide 29: Questions
06 Questions
Slide 30: Appendix
Appendix
Slide 31: 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 Over 500 prof
Slide 32: 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 33: Segment Performance
Segment Performance Closing Portfolio Net Contribution 5% 6% 6% 6% 7% 10% 14% 11% 10% 15% 38% 39% 40% 41% 41% 54% 60% 62% 59% 54% 57% 55% 54% 53% 52% 36% 27% 29% 28% 31% 1H24 2H24 1H25 2H25 1H26 1H24 2H24 1H25 2H25 1H26 Residential Secured Fin Services Residential Secured Fin Services Net Revenue 35
Slide 34: Expected Credit Loss
Expected Credit Loss ECL by Segment ECL Economic Scenarios ($m) $6.3 $60.4 $57.6 ($0.3) ($3.2) $81 $14.1 $20.4 $60 $51 $46 $37.0 $33.8 ECL Movement (-) ($14m) ($9m) $21m $6.5 Calculated 100% 100% 100% $6.2 ECL upside baseline downside Expected Jun-25 Residential Secured Fin Serv Dec-25 Loss Economic
Slide 35: Reconciliation Statutory to Underlying
Reconciliation Statutory to Underlying $'m 1H25 2H25 1H26 Statutory NPAT 65.6 67.7 76.4 IP amortisation 5.9 5.9 5.9 Statutory NPATA 71.5 73.6 82.3 Commission income (1.9) 0.2 - Commission expense 1.5 (0.1) - Personnel costs - - - Other expenses – operating expenses 0.2 - - Other expenses - impairmen
Slide 36: Statutory P&L
Statutory P&L $'m 1H25 2H25 1H26 Interest income on financial assets measured at amortised cost 639.6 611.2 584.7 Interest income on financial assets measured at fair value 0.4 0.6 0.2 Effective yield fee income on financial assets measured at amortised cost 21.5 20.1 21.1 Other financial income 99.
Slide 37: 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 38: Thank you
Thank you Thank you
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