Pepper Money Ltd · ASX:PPM
Pepper Money — CY2025 Earnings Presentation
35 slides from Pepper Money's earnings presentation, Feb 19, 2026
Slide 1: Full Year Results
INVESTOR PRESENTATION 2025 Full Year Results 19 February 2026
Slide 2: Acknowledgement of Country
P E P P E R MO N E Y Acknowledgement of Country Pepper Money acknowledges Australia’sFirst Nations peopleas the TraditionalCustodiansof the landand their continuingconnectionto country, seaandwater.We pay respectto their Elders pastandpresent. 2 © Pepper © PepperMoney MoneyLimited. Limited.
Slide 3: Today's Presenters
PEPPER MONEY Today’s Presenters Mario Rehayem Therese McGrath Chief Executive Officer Chief Financial Officer JOINED PEPPER MONEY IN 2011 JOINED PEPPER MONEY IN 2018 APPOINTED CEO IN 2017 Over 25 years Previously held senior positions in Over 30 years Previously held senior positions in of experienc
Slide 4: CY2025 Performance highlights
INVESTOR PRESENTATION CY2025 | Performance highlights Originations Mortgages Asset Finance Total Public Securitisations Whole Loan Sales Record Record Originations $10.3bn $6.8bn $3.5bn Funding $7.0bn $3.5bn $3.5bn +47% versus PCP¹ +66% versus PCP +20% versus PCP +35% versus PCP AUM Mortgages Asset
Slide 5: Volume growth
BUSINESS UPDATE Volume growth Total Applications¹($bn) Total Originations ($bn) AUM ($bn) Half Year Full Year 1.8 1.4 Half Year Full Year 24.0 Opening 30 Jun 31 Dec 1.6 $21.8bn $7.4bn $16.4bn 1.2 22.0 1.4 $10.3bn $20.1bn 1.0 $4.5bn 20.0 $19.1bn 1.2 $5.2bn $11.4bn 0.8 18.0 1.0 $17.0bn $16.7bn $18.3bn
Slide 6: Mortgages | CY2025
BUSINESS UPDATE Mortgages | CY2025 Volume Income Credit Quality Originations by Product ($bn) Weighted Interest Rates¹ (%) C overage Ratio³ 6.8 0.2 +66% PCP CY2024 CY2025 0.28% 0.21% 0.18% 0.18% 4.1 1.7 ▪ (17)% 0.2 1.9 4.9 Prime 7.6% 6.8% 2.0 ▪ (11)% CY2024 CY2025 ▪ +148% N ear Prime 7.9% 7.2% Prime
Slide 7: Asset Finance | CY2025
BUSINESS UPDATE Asset Finance | CY2025 Volume Income Credit Quality Originations by Product ($bn) Weighted Interest Rates¹ (%) C overage Ratio³ 1.86% 1.70% 1.71% 2.9 3.5 CY2024 CY2025 1.57% +20% PCP 1.4 1.7 ▪ +20% Prime 9.5% 8.6% 0.9 0.8 0.8 0.9 ▪ +19% CY2024 CY2025 ▪ +21% N ear Prime 11.5% 10.4% Co
Slide 8: Loan & Other Servicing | CY2025
BUSINESS UPDATE Loan & Other Servicing | CY2025 Benefits of Loan & Targeted Whole Administration Loan Portfolio Other Servicing Segments Loan Sales of Loan Portfolios Acquisition Capital- light revenue stream CAGR Servicing AUM 89% December Close ($bn) PCP Risk reduced– no credit losses 56% 5.1 Defe
Slide 9: Funding
BUSINESS UPDATE Funding Public Term Non- Prime Commercial Auto ABS Whole Loan Warehouses Securitisations conforming RMBS Real Estate Sales⁴ RMBS $13.3bn total capacity 25 domestic and international investors $ 44.8 bn³ $26.9bn $10.9bn $0.5bn $6.4bn $ 10.2bn Across 68 transactions Across 37 transacti
Slide 10: Scaled technology, process improvements – efficient growth
BUSINESS UPDATE Scaled technology, process improvements – efficient growth Credit: Settlements: # Applications per Credit FTE¹ # Origination per Settlement FTE Servicing CAGR CAGR 30 % 51% # AUM per Servicing FTE ² 321 768 CAGR 239 13% Mortgages 189 467 339 1,227 1,152 CY2023 CY2024 CY2025 CY2023 CY
Slide 11: Environmental, Social and Governance (ESG)
BUSINESS UPDATE Environmental, Social and Governance (ESG) Environmental Social Published inaugural Customers Our People Pepper Giving Climate governance approach and responsibilities Sustainability Report¹ and Partners under AASB S2 including: Climate risk and opportunity management approach 30+ ch
Slide 12: Financial Performance
FINANCIALS Financial Performance Volume Income Pro-forma Expenses / FTE Pro-forma Profit Originations ($bn) Net Interest Margin (%) Total Expenses ($m) Profit pre-Tax and Loan Loss Expense ($m) +47% +2% +13% 2.85% 2.55% 246.7 242.0 10.3 2.05% 29.2 22.5 1.97% 3.5 19.4 16.4 7.0 1.65% 11.3 3.5 2.9 1.54
Slide 13: NIM Movement
Total FINANCIALS Total NIM Movement +10bps (5)bps +15bps 0.15% 0.24% (0.35%) 0.15% (0.41%) 0.32% Total NIM increased by 10 bps versus 2H 2024 2.13% driven by improved funding margins and 2.03% 1.98% stabilisation of swap rates / BBSW. 2H 2024 Customer BBSW / Funding 1H 2025 Customer BBSW / Funding 2
Slide 14: Credit Performance | Loan Loss Expense
FINANCIALS Credit Performance | Loan Loss Expense Calendar Year Mortgages $ Million CY2025 CY2024 90+ Day Arrears² as % of AUM Mortgages 1.89% 1.83% 1.47% Specific (4.5) (4.2) 1.46% Collective¹ 4.3 10.0 Mortgages loan loss expense (0.2) 5.8 Mortgages (excluding WLS) Mortgages (including WLS) Asset F
Slide 15: Credit Performance | Loan Loss Provisions
FINANCIALS Credit Performance | Loan Loss Provisions Movement in Loan Book and Coverage Ratio Mortgages Collective Specific AUM Total Provisions Provisions¹ Provisions Coverage Ratio Collective Provisions As at Specific Provisions $ Billion $ Million Decreased by $(4.3) million on Increased by $1.5
Slide 16: Total Pro-forma Expenses
FINANCIALS Total Pro-forma Expenses C alendarYear % CY2025 vs $ Million CY2025 CY2024 CY2024¹ FTE Movement (#) Employee benefits expense (132.1) (126.3) (5)% Period close Marketing expense (14.7) (15.4) 4% Technology expense (26.4) (24.6) (7)% (2) % Other expense (29.9) (31.8) 6% Operating Expense (
Slide 17: Pro-forma Profit & Loss
FINANCIALS Calendar Year % CY2025 vs Pro-forma $ Million CY2025 CY2024 CY2024 Interest income 1,275.6 1,436.1 (11)% Profit & Loss Interest expense (940.0) (1,094.7) 14% Net interest income 335.6 341.4 (2)% Lending fee income 68.0 65.6 4% Lending expense (30.2) (29.5) (2)% Whole loan sales gain 66.0
Slide 18: Financial Metrics (Pro-forma)
FINANCIALS Calendar Year % CY2025 vs CY2025 CY2024 CY2024 Financial Metrics Volume ($ Billion) Originations – Mortgages 6.8 4.1 66% (Pro-forma) Originations – Asset Finance 3.5 2.9 20% Total Originations 10.3 7.0 47% AUM lending – Mortgages (closing) 10.2 10.2 0% AUM lending – Asset Finance (closing
Slide 19: Capital Management | CY2025
FINANCIALS Capital management strategy driving Capital Management | CY2025 material uplift in shareholder returns Corporate Debt Shareholder Returns Special Dividend Interim Dividend Final Dividend Corporate Debt Facility Medium-Term Notes Debt retired Debt retired in February $27.5m in September $4
Slide 20: Sources and Uses of Cash / Corporate Cash Flow
FINANCIALS $ Million Movement Sources and Uses of Cash Trust income 296.9 C orporate Cash Flow Origination fees 58.2 Whole Loan Sale premium 85.9 Key Movements: 31 December 2024 to 31 December 2025 Servicing and other income 18.9 Total income 459.8 Inflow Outflow Operating expense (218.1) Trust inco
Slide 21: Balance Sheet
Balance as at FINANCIALS $ Million 31 December 2025 31 December 2024 Balance Sheet Cash and cash equivalents 1,267.0 1,226.2 Receivables 25.2 13.9 Derivative financial assets 40.7 21.0 Key Movements: 31 December 2024 to 31 December 2025 Loans and advances 16,854.0 15,991.8 Other financial assets 15.
Slide 22: Pepper Money – well positioned
PEPPER MONEY Pepper Money Pepper – well Money… positioned well positioned Outlook Markets response to higher interest Scaled efficient core businesses, rates will be key and growing capital light annuity stream Pepper Money has demonstrated capabilities Market growth– Mortgages: New products – stron
Slide 23: Non-Binding and Conditional Proposal
PEPPER MONEY Non-Binding and Conditional Proposal • Pepper Money hasreceived a confidential, non - binding and conditional proposal to acquire 100% of the shares in Pepper Money under a scheme of arrangement (“Indicative Proposal”) from Challenger Limited (“Challenger”) under which Challenger and Pe
Slide 24: Questions & Answers
Questions & Answers
Slide 25: Thank you
Thank you on behalf of all of Pepper Money Pepper Money Limited ABN 55 094 317 665. Australian Finance Services Licence 286655; Australian Credit Licence 286655 Pepper Asset Finance Pty Limited ACN 165 183 317; Australian Credit Licence 458899 © Copyright Pepper Money Limited. All righ ts reserved.
Slide 26: Appendices
Appendices
Slide 27: Addressable Market
APPENDIX Addressable Market Mortgages Asset Finance December 2025 Total Addressable Market (AUM) $2,893 bn ¹ $251bn Conforming: 88% Consumer: $77bn⁴ Non- Conforming: 12%2 Commercial: $174bn⁵ ³ ⁶ Pepper Money’s Market Share (closing AUM) ~0.4 % ~2.6% Consumer: ~2.5% Commercial: ~2.6%⁷ Targeted • Firs
Slide 28: Systems growth and AUM walk
December 2025 Mortgages Asset Finance APPENDIX Systems growth $3,144bn $2,893bn¹ $251bn Total Addressable Conforming: 88% Consumer: $77bn³ Market (AUM) Non- Conforming: 12%² Commercial: $174bn⁴ Mortgages⁵ AUM Walk Asset Finance AUM Walk Closing AUM (A$bn) Closing AUM (A$bn) 6.7x 8.5 x Growth⁶ System
Slide 29: Mortgages | Half on half comparison CY2025
BUSINESS UPDATE Mortgages | Half on half comparison CY2025 Volume Income Credit Quality Originations by Product ($bn) Weighted Interest Rates¹ (%) C overage Ratio³ 4.0 2.8 +46% vs 1H 2025 1H 2024 2H 2024 1H 2025 2H 2025 0.24% 0.28% 0.21% 0.18% 0.18% 0.1 2.3 1.8 0.9 0.1 0.1 0.1 0.8 ▪ +34% Prime 7.7%
Slide 30: Asset Finance | Half on half comparison CY2025
BUSINESS UPDATE Asset Finance | Half on half comparison CY2025 Volume Income Credit Quality Originations by Product ($bn) Weighted Interest Rates¹ (%) C overage Ratio³ 1.8 1.4 1.7 1H 2024 2H 2024 1H 2025 2H 2025 1.71% 1.86% 1.5 1.57% 1.70% +6% vs 1H 2025 0.8 0.8 0.7 0.7 0.4 0.5 ▪ (4)% Tier A 9.6% 9.
Slide 31: NIM Movement
Total FINANCIALS Total +5bps NIM Movement (3)bps +8bps 0.57% (0.53%) (0.07%) 0.26% (0.49%) Total NIM increased by 8 bps versus CY2024 0.31% driven by improved funding margins and 2.00% 1.97% 2.05% stabilisation of swap rates / BBSW, net of customer rate. CY2023 Customer BBSW / Funding CY2024 Custome
Slide 32: Glossary & Disclaimer
Glossary & Disclaimer
Slide 33: Glossary of Terms
PEPPER MONEY Glossary of Terms AUM – Lending (closing): Assets Under Management Employee benefits expense/Total operating income: Total Operating Income: Includes net interest income, originated and serviced (securitised and Pepper Money balance Employee benefits expense divided by total operating i
Slide 34: Disclaimer
PEPPER MONEY Disclaimer Summary information This Presentation contains summary information about Pepper Money Limited (ACN 094 317 665) (Pepper Money) and its Forward- looking information activities and is current only as at the date of this Presentation (unless specified otherwise). The material in
Slide 35: Pepper Money Limited ABN 55 094 317 665. Australian
Pepper Money Limited ABN 55 094 317 665. Australian Finance Services Licence 286655; Australian Credit Licence 286655 Pepper Asset Finance Pty Limited ACN 165 183 317; Australian Credit Licence 458899 © Copyright Pepper Money Limited. All rights reserved.