Latitude Group Holdings Ltd. · ASX:LFS
Latitude — H1 2025 Earnings Presentation
36 slides from Latitude's earnings presentation, Jun 30, 2025
Slide 1: 1H25 Results Presentation
1H25 Results Presentation For the half year ended 30 June 2025 LATITUDE GROUP HOLDINGS LIMITED ABN 83 604 757 391
Slide 2: Important Notice & Disclaimers
Important Notice & Disclaimers Important notice and disclaimer The following important notice and disclaimer applies to this presentation (“Presentation”) and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any information contained in
Slide 3: Important Notice & Disclaimers
Important Notice & Disclaimers Information and liability To the maximum extent permitted by law, LFS and related bodies corporate and each of their respective directors, officers, employees, partners, agents, and management (together, the “Beneficiaries”) exclude and expressly disclaim: • all duty a
Slide 4: Agenda
Agenda 1 First Half 2025 Highlights 2 Financial Performance 3 Management Outlook
Slide 5: First Half 2025 Highlights
First Half 2025 Highlights Bob Belan – Managing Director & CEO
Slide 6: Half Year 2025 Snapshot – Key Business Drivers
Half Year 2025 Snapshot – Key Business Drivers Momentum in key growth drivers continues, strong result achieved. New Customer Total Card Total Card Purchase New Personal & Auto Accounts Opened Transactions (#) Volume ($) Loan Origination Market Share Growth 146k 28m $3.5b $783m Accelerating Personal
Slide 7: Half Year 2025 Snapshot – Key Financial Metrics
Half Year 2025 Snapshot– Key Financial Metrics Financial momentum continued in 1H25 Interest Net Interest Total Operating Risk Adjusted Income Income Income Income Funding Raised $1.5 billion $588m $396m $408m $278m Mix shift from private to public vehicles 17.3% 11.7% 12.0% 8.2% Favourable pricing
Slide 8: Money: Receivables at record highs, whilst margins rise
Money: Receivables at record highs, whilst margins rise 1 Brilliant Basics (Revenue Management) Record high new origination Rising portfolio yield supporting Receivables reach new record volume achieved in 1H25 NIM growth momentum high of $3.2bn +8% YoY / 5% HoH with increase in variable Surgical pr
Slide 9: Pay: New originations and volume delivering growth
Pay: New originations and volume delivering growth 1 Brilliant Basics (Revenue Management) LFS Card value propositions LFS Card usage & purchase Delivering growth in LFS Card resonating to capture increased credit volume is accelerating purchase volumes and receivables demand Applications +14% YoY a
Slide 10: OpEx re-engineering now embedded and enabling additional investment in growth initiatives
OpEx re-engineering now embedded and enabling additional investment in growth initiatives 2 Brilliant Basics (Operating Leverage) Disciplined cost management delivering Expense base re-engineering unlocking capacity operational efficiencies for incremental strategic & growth investments Cash OpEx Co
Slide 11: Funding Program Highlights
Funding Program Highlights 3 Optimised Balance Sheet CoF Optimisation Momentum across LFS’ ABS programme continues Size of public ABS programme grows as Raised $1.0bn of new funding in public ABS1 investor following expands1 Continued programmatic issuance in 1H25 with 2 public term transactions
Slide 12: Financial Performance
Financial Performance Guillaume Leger – CFO
Slide 13: First Half 2025 Financial Snapshot
First Half 2025 Financial Snapshot 1H25 financial outcomes continue to improve Strong financial position Increasing margins Profit growth continues supporting return of capital to shareholders Total Operating Income % Cash NPAT ($m) DPS (cents) Unfranked Unfranked 4.0 12.02% 46 11.74% 38 10.93% 3.0
Slide 14: First Half 2025 Financial Snapshot
First Half 2025 Financial Snapshot 1H25 financial performance was underpinned by strong foundational improvements Growing volumes & Risk adjusted margins Improving OpEx efficiency receivables continue to grow while investing in growth New Loan Origination & Purchase Volumes ($m) Net Charge Offs Cash
Slide 15: Strong topline performance
Strong topline performance Robust volume momentum is powering receivables’ rebound Volume growth continues +12% YoY, (4%) HoH Delivering receivables growth ($m) ($Bn) 17 4,247 370 7.7 6.9 6.5 6.4 7.0 6.3 6.2 31 24 3,805 1H19 1H20 1H21 1H22 1H23 1H24 1H25 Interest 5.2 4.7 4.4 4.4 4.5 4.7 5.2 Bearing
Slide 16: Operating income margin evolution
Operating income margin evolution Asset pricing actions driving lift in operating margins, while funding costs have reduced Strategic/competitive repricing initiatives actioned across PL/Auto and Considered pricing actions GO/Gem APR’s ↓ Key HoH drivers 17.7% 17.7% 16.2% 16.9% Revenue 15.7% Margin e
Slide 17: Credit performance within range
Credit performance within range Delinquency and losses performing in line with historical norms Quality of new customer Delinquency trends performing in line with pre-Covid long-term norms originations remains strong Pre-Covid COVID stimulus Cyber peak Money charge off methodology change 3 Money A&N
Slide 18: Credit loss profile
Credit loss profile Charge offs trending within historical ranges, while prudent provisioning is maintained Historical Net Charge Offs & Provision Coverage Rates 5.50% 6% 4.62% 4.46% 4.42% 4.42% 5% Net Charge Off Rate 4.35% 4.29% 4.29% 4.28% 4.24% 4.25% 4.23% 4.20% 4.21% 4.21% 4.21% (Rolling 12 mont
Slide 19: Risk adjusted return expansion reflects effective risk-return optimisation
Risk adjusted return expansion reflects effective risk- return optimisation enabled by pricing and funding levers RAI yield up 77bps YoY to 8.2% Interest Rate Sensitivity 34bps Interest Expense benefit1 75bps 74bps 8.2% (32)bps • Revenue yield ↑ through considered pricing actions since ~$10m p/a (31
Slide 20: Operational efficiency gains supporting improved profitability
Operational efficiency gains supporting improved profitability Positive Jaws Ratio ($m) 19% 19% Jaws +16% YoY in 1H25: Operating Income +19% YoY vs. 11% Cash Opex +3% YoY 1 16% 5% Jaws momentum strengthens ability 9% to drive: 3% 2% • Margin expansion -3% • Fund growth initiatives • Path toward sust
Slide 21: Outlook
Outlook Bob Belan – Managing Director & CEO
Slide 22: Outlook
Outlook 1. Macroeconomic tailwinds to support asset growth Latitude continues to progress organic growth opportunities. We’re likely to benefit from further central bank cash rate reductions which should lift consumer sentiment and consumption, supporting demand across our core products and segments
Slide 23: Company Overview
Company Overview
Slide 24: Unique and successful business model with differentiated core capabilities
Unique and successful business model with differentiated core capabilities proven across the full economic cycle. Our Core Segments Latitude Makes It Possible Consumer lending & payment specialists With financing solutions in the moments that matter PERSONAL VEHICLE DEPOSIT Engender loyalty and grow
Slide 25: Unparalleled scale, reach & expertise distinguish LFS franchise
Unparalleled scale, reach & expertise distinguish LFS franchise across consumer lending landscape AU Personal loans and cards portfolio ranking1 14.0 $bn SCALE Big 4 Bank $7.0bn total customer balances2 Non-Bank Lenders 12.0 $7.1bn in total purchases on cards annually2 Regional/Mid-sized Bank Mutual
Slide 26: Our Strategy & Our Leaders
Latitude Our Strategy & Our Leaders Executive Team Company priorities & resource allocation guided by a clear and focused Corporate Strategy led by a globally experienced executive team Path to Full Potential Strategy SIMPLIFY – OPTIMISE – MAXIMISE Bob Belan MD & CEO Guillaume Leger CFO ------------
Slide 27: Meeting the needs of consumers and merchant-partners
Meeting the needs of consumers and merchant-partners Engaged CUSTOMERS looking for great experiences… Cross-generational & diverse High Quality Customer Base • 63% Millennials & Gen X and 32% Boomers 2% 7% 5% • 66% city, 34% rural 12% • 48% female, 52% male CASUAL CONTRACTORS Engaged, loyal & lo
Slide 28: Appendices
Appendices
Slide 29: ESG Half-Year 2025 highlights
ESG Half-Year 2025 highlights $1m+ donated to charity partners via Carbon emissions platform selected to workplace giving since August 2017 strengthen climate reporting. Launched our inaugural Reconciliation Supported vulnerable customers through Action Plan approval of 19.5k+ hardship applications
Slide 30: Macro environment conditions reverting to historical levels
Macro environment conditions reverting to historical levels, playing to Latitude’s advantage Household Savings returning to normalised levels … Retail Sales (YoY) showing modest growth … 25.0 25.0% 20.0 20.0% • After COVID driven 15.0% 15.0 surge and sharp 10.0% • Modest growth drawdown, 5.0% starti
Slide 31: Funding Platform & Approach
Funding Platform & Approach Continued active funding programme with 2 term transactions totaling $1.0b in 1H 20252 Cost 58 63% Investors Diverse Funding Platform Effective Investors Offshore to A&NZ Prudent capital management • 3 transactions completed in 1H25: approach • 2 public transactions $1.0b
Slide 32: Funding: cash rate scenario sensitivity
Funding: cash rate scenario sensitivity Strong potential for margin expansion as rates reduce with 25bps change = $10m pre-tax benefit1 Easing cycle in Australia and New Zealand is underway Sensitivity Summary 6.0% 6.0% and Outlook NZ Cash Rate 5.0% 5.0% • 25bps rates = ~$10m interest expense (pre-t
Slide 33: Delinquency performance over time
Delinquency performance over time Delinquencies (30+ days past due) by product, Australia Delinquencies (30+ days past due) by product, New Zealand 9% Shift to Shift to 8% 9% 180 days1 180 days1 8% Mar’23 7% Mar’23 cyber incident 7% cyber incident 6% 6% 5% 5% 4% 4% 3% 3% 2% 2% 1% 1% 0% 0% 2008 2009
Slide 34: Results Summary
Results Summary 1H25 2H24 1H24 HoH YoY New Volume ($m) 4,247 4,418 3,805 (4%) 12% Gross receivables ($m) 6,962 6,748 6,378 3% 9% AGR ($m) 6,842 6,565 6,287 4% 9% Cash PBT ($m) 93 89 67 6% 40% Cash NPAT ($m) 46 38 27 20% 69% Statutory NPAT ($m) 40 22 9 84% 341% Cash EPS (cents) 4.44 3.70 2.63 19% 69%
Slide 35: Summary profit & loss statement
Summary profit & loss statement ($m) 30-Jun-25 31-Dec-24 30-Jun-24 HoH Change YoY Change 1H25 2H24 1H24 %/bps %/bps Interest income 588.4 565.9 508.6 4% 16% Interest expense (192.3) (198.2) (187.8) 3% (2%) Net interest income 396.1 367.7 320.8 8% 23% Other income 11.6 19.7 21.0 (41%) (45%) Total ope
Slide 36: Cash NPAT to Statutory NPAT 1H25
Cash NPAT to Statutory NPAT 1H25 1H25 Restructuring Asset Decommissioned Cash NPAT Remediations Stat NPAT ($'m) costs impairment facilities Net interest income 396.1 - - - - 396.1 Other income 11.6 - - - - 11.6 Total operating Income 407.7 - - - - 407.7 Net charge offs (130.1) - - - - (130.1) Risk a
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