Resimac Group Limited · ASX:RMC
Resimac — H1 FY2020 Earnings Presentation
23 slides from Resimac's earnings presentation, Feb 26, 2020
Slide 1: ASX Release: HY20 Investor Presentation
26 February 2020 For personal use only ASX RELEASE HY20 Investor Presentation Resimac Group Ltd (ASX: RMC, “Resimac”) today announced its financial results for the six months ended 31 December 2019. The Investor Presentation of the financial results authorised by the Board of Resimac is attached. Ch
Slide 2: 1H20 Results Presentation
For personal use only Resimac Group Ltd 1H20 RESULTS PRESENTATION FEBRUARY 2020
Slide 3: Performance Highlights
For personal use only PERFORMANCE HIGHLIGHTS ScoD McWilliam, CEO Jason Azzopardi, CFO
Slide 4: 1H20 Performance Highlights (vs 1H19)
1H20 PERFORMANCE HIGHLIGHTS (vs 1H19) For personal use only $27.2m $26.9m $84.3m 42.1% STATUTORY NORMALISED* NET INTEREST COST TO INCOME NPAT NPAT INCOME RATIO (NORMALISED) 44% 85% 53% 1,570bps $2.4b $11.3b $14.2b 26.0% HOME LOAN HOME LOAN ASSETS TOTAL ASSETS UNDER RETURN ON SETTLEMENTS UNDER MANAGE
Slide 5: Financial Results Summary
PERFORMANCE HIGHLIGHTS FINANCIAL RESULTS SUMMARY For personal use only § 1,570bps reducVon in Cost to Income RaVo driven by revenue growth and conVnued cost discipline. § SeDlement volumes increased driven by a recovering housing market and FY19 macro headwinds easing. § Fully franked interim divide
Slide 6: Earnings Growth
PERFORMANCE HIGHLIGHTS EARNINGS GROWTH For personal use only § Significant earnings growth with normalised NPAT increasing 85% driven by Net Interest Income (+53%). § Cost to income raVo decreased significantly driven by higher Net Interest Income partly offset by digital and technology transformaVon c
Slide 7: Revenue & Earnings, Cost to Income Ratio
PERFORMANCE HIGHLIGHTS REVENUE & EARNINGS COST TO INCOME RATIO For personal use only 68.2% 100 30 70.0% 84.3 25 65.0% 61.7% 80 62.8 26.9 57.8% 55.1 20 60.0% 55.4% 60 51.0 51.6 55.0% $m $m 42.2 15 40 16.6 50.0% 14.5 10 45.0% 42.1% 20 12.9 13.3 5 10.5 40.0% 0 0 H2 17 H1 18 H2 18 H1 19 H2 19 H1 20 35.0
Slide 8: Group Margin
PERFORMANCE HIGHLIGHTS GROUP MARGIN For personal use only GROUP NET INTEREST MARGIN (BPS) BBSW (SPREAD OVER CASH) 87 183 45 39 RBA CASH RATE 40 JUN 19: 1.25% 148 JUL 19: 1.00% 35 OCT 19: 0.75% 30 30 26 3 25 (55) 20 15 12 9 10 5 - 1H19 Home Loan Lower Cost BBSW 1H20 1H18 2H18 1H19 2H19 1H20 Pricing o
Slide 9: Funding Program
PERFORMANCE HIGHLIGHTS FUNDING PROGRAM For personal use only § During 1H20, the Group remained acVve in the global capital markets with $2.5b of 5 year RMBS issued across 3 transacVons in domesVc, Asia Pacific & Japan (“APJ”) and US jurisdicVons § Resimac’s USD 144a programme conVnues to develop dept
Slide 10: Home Loan Portfolio Performance
PERFORMANCE HIGHLIGHTS HOME LOAN PORTFOLIO PERFORMANCE For personal use only ARREARS (%) LOAN PROVISIONS Dec 2019 BPS Coverage $m ($m) of AUM Prime 5.2 7bps Specialist / Near Prime 9.7 35bps RHG 3.2 69bps Other (incl. NZ) 1.4 24bps Total Provisions 19.5 17bps RESIDENTIAL MORTGAGES PILLAR 3 TOTAL PAS
Slide 11: Home Loan Portfolio Composition
PERFORMANCE HIGHLIGHTS HOME LOAN PORTFOLIO COMPOSITION For personal use only 5% 2% § Weighted average porwolio LVR – Prime GEOGRPHIC LOCATION NSW 66.3%; Specialist 68.8% LOAN PURPOSE 8% VIC 41% 38% Owner Occupied 17% QLD § Geographical spread of 59% Investment Only WA porwolio reflecVve of SA Austral
Slide 12: Strategic Priorities & Outlook
For personal use only STRATEGIC PRIORITIES & OUTLOOK ScoD McWilliam, CEO
Slide 13: Strategic Priorities: Digital Automation
STRATEGIC PRIORITIES DIGITAL AUTOMATION For personal use only Increased scalability to Digital AutomaYon support growth strategy Workflow management system (Salesforce) Increased se&lements New Direct channel online OPTIMAL experience and applicaVon CUSTOMER Increased life of loan launched (Athena pa
Slide 14: Strategic Priorities: Asset Class Diversification
STRATEGIC PRIORITIES ASSET CLASS DIVERSIFICATION For personal use only Purchased 60% of IA Group with opVon to acquire remaining 40% within 2 years. Strategic ObjecYve Market Opportunity Synergies DiversificaVon from the DisrupVon of incumbent Funding - IA’s flexible residenVal mortgage asset finance p
Slide 15: Strategic Priorities: Growth in Market Share
STRATEGIC PRIORITIES GROWTH IN MARKET SHARE For personal use only Broker Channel Growth Direct Channel Growth Ongoing brand awareness, educaVon and Redesigned online experience, including broker engagement focus applicaVon process opVmisaVon Enhanced broker and borrower experience Process efficiency t
Slide 16: FY20 Outlook
FY20 OUTLOOK For personal use only § We expect the housing market recovery to conVnue, driving compeVVon resulVng in low new business rates to consumers. § Consumer trends towards the Broker channel and lenders outside of the Big4 conVnues. December and January applicaVon volumes were strong in a tr
Slide 17: Financial Results
For personal use only FINANCIAL RESULTS Jason Azzopardi, CFO
Slide 18: Consolidated Statement of Profit or Loss
CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE HALF YEAR ENDED 31 DECEMBER 2019 For personal use only 1H20 $m 1H19 $m Interest income 229.1 217.0 Interest expense (144.8) (161.9) Net interest income 84.3 55.1 Fee and commission income 6.2 11.8 Fee and commission expense (18.0) (15.7) De-recogniVon
Slide 19: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 For personal use only $m 31 DEC 19 30 JUN 19 $m 31 DEC 19 30 JUN 19 Assets Cash reconciliaYon Cash and bank balances 412.4 224.8 Cash at bank and on hand 11.3 10.6 Trade and other receivables 6.5 10.7 Cash collecVons account 391.1 2
Slide 20: Consolidated Statement of Cash Flows
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2019 For personal use only $m 1H20 $m 1H19 $m Cash flows from operaYng acYviYes Interest received 234.4 215.2 Interest paid (137.5) (155.3) Receipts from loan fees and other income 25.4 18.1 Payments to suppliers and employees (
Slide 21: Scott McWilliam and Jason Azzopardi
For personal use only Sco& McWilliam Jason Azzopardi Chief ExecuVve Officer Chief Financial Officer ScoD has over 20 years’ experience in the financial services sector. Jason joined the Resimac group in July 2018 as Chief Financial This includes holding senior roles in debt capital markets for Officer. Pri
Slide 22: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER The informaVon in this presentaVon provides an overview of the results for the half year ended 31 December 2019. It is general For personal use only background informaVon about the acVviVes of Resimac Group Ltd and is current as at the date of the presentaVon, 26 Februa
Slide 23: For personal use only
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