Liberty Financial Group Ltd · ASX:LFG
Liberty Financial — H1 FY2025 Earnings Presentation
38 slides from Liberty Financial's earnings presentation, Feb 24, 2025
Slide 1: Liberty Financial Group FY25 Half Year Results
Liberty Financial Group FY25 Half Year Results For personal use only 24 February 2025
Slide 2: Acknowledgement of Country
Acknowledgement of Country For personal use only 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 tha
Slide 3: Presenting today
Presenting today For personal use only James Boyle Peter Riedel Chief Executive Officer Chief Financial Officer |3
Slide 4: Agenda
Agenda For personal use only 01 Overview 02 Results Analysis 03 Business Update 04 Outlook 05 Summary 06 Questions
Slide 5: Overview
For personal use only 01 Overview
Slide 6: Overview
Overview For personal use only Profit growth in a highly competitive environment NIM stable throughout 1H25 Continued portfolio growth through diversification Strong balance sheet with 12% underlying cash ROE Customer hardship stabilising Strong broker and customer net promoter scores Continued inve
Slide 7: Financial Highlights
Financial Highlights For personal use only % Underlying NPATA Net revenue NIM $71.4m ($62.4m) $302.2m ($290.5m) 2.46% (2.47%) +14% +4% (1bps) BDD Cost to income Distribution 9bps (13bps) 26.9% (27.3%) 17c (13c) (4bps) (40bps) +31% |7 *Balances represent: 1H25 (2H24) change between the periods
Slide 8: Operating Highlights
Operating Highlights For personal use only Average financial assets New assets originated Impaired loans $14.7b ($14.3b) $2.8b ($2.8b) $304m ($309m) +3% +1% (1%) Average FTE Staff Broker NPS Customer NPS 528 (541) 85 (87) 52 (61) (2%) (2%) (15%) |8 *Balances represent: 1H25 (2H24) change between the
Slide 9: Results Analysis
For personal use only 02 Results Analysis
Slide 10: Profit Performance
Profit Performance Underlying NPATA ($'m) Statutory NPATA ($'m) $69.6 $71.4 $71.5 For personal use only $62.4 $64.0 $63.1 1H24 2H24 1H25 1H24 2H24 1H25 Increase in Underlying NPATA (1H25 v 2H24) explained by • Higher net interest income with growth in average assets and stable NIM ($7m) • Lower impa
Slide 11: Profit Drivers
Profit Drivers For personal use only Total Revenue ($'m) Loan Impairment (bps) Increased write-offs (4bps) given $759.8 challenging environment for $707.8 $731.9 13 Total revenue growth +7% (1H25 v 12 personal loan borrowers 1H24) and +4% (1H25 v 2H24) Stable new specific provisions 9 driven by incr
Slide 12: Revenue
Revenue For personal use only Average Assets ($'b) Lending Income ($'m) Average asset growth 7% (1H25 v $14.3 $14.7 1H24) and 3% (1H25 v 2H24) $46 $46 $13.8 $44 driven by Secured and Financial Services segments Movement in lending income New originations $2.8b in 1H25 between periods largely consist
Slide 13: Funding
Funding For personal use only Cost of Funding Term Funding ($'b) 6.14% 6.16% 5.82% 10.4 1.5 10.3 2.1 10.3 1.62% 1.82% 1.78% 1.79% (1.6) (2.1) 4.03% 4.32% 4.38% New New 1H24 2H24 1H25 Dec-23 Repaid Issues Jun-24 Repaid Issues Dec-24 179bps 162bps 181bps 146bps 176bps Average funding benchmark cost 43
Slide 14: Portfolio Risk
Portfolio Risk For personal use only +30 Day Delinquency +90 Day Delinquency 3.79% 3.85% 2.11% 2.06% 3.14% 1.45% 1H24 2H24 1H25 1H24 2H24 1H25 Later-stage delinquency stabilised in 1H25 as interest Early-stage delinquency stabilised in 1H25 as interest rates stable since Nov-23 rates stable since No
Slide 15: Loan Impairment
Loan Impairment For personal use only 1H24 (12 bps) 1H25 (9 bps) 7 15 5 5 9 -5 -11 -4 Specific Specific Specific Specific Realised Provision Provision Collective Realised Provision Provision Collective Loss (Release) (Increase) Provision Loss (Release) (Increase) Provision 2H24 (13 bps) 9 Impairment
Slide 16: Loss Provisions
Loss Provisions Collective Provision For personal use only Portfolio by Stage ($'m) Provisions by Nature ($'m) by Stage ($'m) $14,799 $98 $97 Increase in specific provisions $14,638 $75 $88 $71 $70 reflecting continued Secured $14,025 segment portfolio growth $75 $70 $14,103 $71 Decrease in collecti
Slide 17: Expected Credit Loss
Expected Credit Loss For personal use only ECL by Segment ECL Economic Scenarios ($m) $75.4 $0.4 ($7.1) $126 $1.2 $69.9 $15.6 $16.8 $70 $44 $51 $52.6 $45.5 ECL Movement (-) ($26m) ($19m) $56m Calculated 100% 100% 100% $7.2 $7.6 ECL upside baseline downside $- $- Expected Jun-24 Residential Secured F
Slide 18: Operating Expenses
Operating Expenses For personal use only Operating expenses ($m) 1H24 2H24 1H25 Personnel 47 47 45 Lower personnel costs reflect lower Other 37 32 36 FTE offsetting wage inflation Cash expenses 84 79 81 Other expenses return to run-rate in 1H25 IP amortisation 6 6 6 Higher net revenue and effective
Slide 19: Distribution
Distribution For personal use only 45c Interim distribution 12 cents paid in Dec-24 for 24c 5-month earnings period to Nov-24 25c Special dividend 5 cents paid in Dec-24 17c LTM distribution of 30c equates to yield of 9% 13c 5c based on security price of $3.32 (31-Dec-24) 21c 12c 12c Final distribut
Slide 20: Financial Position
Financial Position For personal use only $m Jun-24 Dec-24 Cash 941 905 Financial assets 14,638 14,800 Strong liquidity position with total ($8.9b) and available ($4.4b) limits at 31-Dec-24 Loans to related parties 96 43 Stable balance sheet and leverage Other assets 631 607 Annualised underlying cas
Slide 21: Business Update
For personal use only 03 Business Update
Slide 22: Business Update
Business Update For personal use only Higher group originations with continued portfolio growth Higher residential originations but discharges still impacting Continued growth in SME and SMSF lending Strong competition impacting motor finance Fin Services growth despite challenging environment Conti
Slide 23: Segment Loan Origination
Segment Loan Origination For personal use only Residential ($'m) Secured ($'m) $1,701 $1,125 $1,510 $1,538 $985 22% decrease in 1H25 v 1H24 and 1H25 originations 13% higher than $874 11% decrease in 1H25 v 2H24 1H24 and 11% higher than 2H24 reflecting improving credit growth Increased competitive en
Slide 24: Segment Loan Portfolio
Segment Loan Portfolio For personal use only Residential ($'m) Secured ($'m) $7,987 $5,701 $5,848 $7,874 $7,949 $5,307 Continued growth in Secured loan Despite increasing originations portfolio with strong SME and SMSF portfolio growth continues to be portfolio growth more than impacted by higher th
Slide 25: Relative Value Drivers
Relative Value Drivers For personal use only 2.46% Net Interest Margin Cost to Income Ratio 66.8% 61.5% 2.08% 1.93% 1.88% 1.92% 52.3% 52.5% 53.1% 1.71% 50.7% 48.6% 1.57% 1.56% 1.56% 44.5% 45.2% 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
Slide 26: Outlook
For personal use only 04 Outlook
Slide 27: Outlook
Outlook For personal use only Environment supports & challenges portfolio growth Stable ongoing customer hardship support % NIM stable with possible expansion Continuing NIM, CTI & ROA peer outperformance Automation to improve operational efficiency Investment in broker and customer digital experien
Slide 28: Summary
For personal use only 05 05 Summary Summary
Slide 29: Summary
Summary For personal use only Diverse customer solutions driving portfolio growth % Leading peer NIM, CTI & 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 solut
Slide 30: Questions
For personal use only 06 Questions
Slide 31: Appendix
For personal use only Appendix
Slide 32: Who is LFG?
Who is LFG? For personal use only Liberty Financial Durable Business Model Diversified Portfolio Started 1997 and only investment Advanced risk-management grade non-bank (BBB/stable/A-3) capabilities Pioneered specialty finance industry Proprietary technology supports in Australia and New Zealand op
Slide 33: Products and Service
Products and Service Residential Finance Financial Services For personal use only 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
Slide 34: Segment Performance
Segment Performance For personal use only Closing Portfolio Net Contribution 4% 5% 5% 6% 6% 14% 12% 10% 14% 11% 32% 35% 38% 39% 40% 41% 45% 54% 59% 60% 64% 60% 56% 55% 54% 45% 43% 36% 29% 27% 1H23 2H23 1H24 2H24 1H25 1H23 2H23 1H24 2H24 1H25 Residential Secured Fin Services Residential Secured Fin S
Slide 35: Reconciliation Statutory to Underlying
Reconciliation Statutory to Underlying For personal use only $'m 1H24 2H24 1H25 Statutory NPAT 58.1 57.2 65.6 IP amortisation 5.9 5.9 5.9 Statutory NPATA 64.0 63.1 71.5 MPRE sale-related adjustments Commission income (12.1) (9.3) (1.9) Other income – gain on sale - (0.8) - Commission expense 9.7 7.5
Slide 36: Statutory P&L
Statutory P&L $'m 1H24 2H24 1H25 For personal use only Interest income on financial assets measured at amortised cost 590.8 615.7 639.6 Interest income on financial assets measured at fair value 1.5 1.4 0.4 Effective yield fee income on financial assets measured at amortised cost 21.5 22.2 21.5 Othe
Slide 37: Disclaimer
Disclaimer The information provided in this presentation and any information supplied in connection with this No offer of securities For personal use only presentation (“Presentation”) has been prepared by Liberty Financial Group Limited (ACN 125 611 574) This Presentation is not, and does not const
Slide 38: Thank you
For personal use only Thank you
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