Resimac Group Limited · ASX:RMC
Resimac — FY2024 Earnings Presentation
35 slides from Resimac's earnings presentation, Aug 29, 2024
Slide 1: FY24 Results Presentation
RESIMAC GROUP LTD For personal use only FY24 Results Presentation Susan Hansen, Interim CEO James Spurway, CFO Andrew Marsden, CTO
Slide 2: Today's presenters
Today's presenters. For personal use only Susan Hansen James Spurway Andrew Marsden | Interim Chief Executive Officer | Chief Financial Officer | Chief Treasury Officer Susan was appointed Interim CEO of James joined Resimac in May 2024 as CFO. Andrew joined Resimac’s Treasury team in Resimac in Jul
Slide 3: Our mission
Home Loan Asset Finance For personal use only Prime and Awarded Specialist in Secured Equipment Business and non-conforming investment helping the business lending consumer Our home loans property lender self-employed loans auto ENABLED BY mission. Core Competencies Strategy & Execution Our team of
Slide 4: FY24 highlights
Normalised Statutory Return on equity1,2 NPAT1,2 NPAT (Normalised NPAT) $43.1m $34.8m 10.4% For personal use only vs. FY23 $73.7m vs. FY23 $66.5m vs. FY23 18.6% FY24 Cost to income ratio1,2 Home Loan AUM Asset Finance AUM highlights. (Normalised) 53.1% $12.9b $1.1b vs. FY23 43.6% vs. FY23 $13.1b vs.
Slide 5: FY24 performance highlights
Growth in Asset Finance Settlements in the Asset Finance business grew +60% YoY from $0.5b in FY23 to $0.8b in FY24. Target of $1b AUM achieved, with strong momentum in origination volumes maintained in FY25. For personal use only Home Loan AUM The Home Loan portfolio experienced eight consecutive m
Slide 6: Financial results overview
For personal use only Financial results overview.
Slide 7: FY24 financial snapshot
FY24 financial snapshot. After a challenging 1Q24, home NIM compression persists, Disciplined opex management with NPAT down YoY reflects NIM For personal use only loan volumes recovered, supporting new funding pricing is increase in provisioning to reflect headwinds and average Home Loan the AUM gr
Slide 8: Financial results summary
Financial results summary. Normalised NPAT excl. FV losses on derivatives $43.1m For personal use only FY24 1H24 2H24 FY23 CHANGE FY24 vs. FY23 Driven by average Home Loan FINANCIAL PERFORMANCE AUM $1.8b lower in FY24 and $11.6m loan impairment NPAT (normalised)1 (excl. FV gains/losses on derivative
Slide 9: Profitability
Profitability. Key NPAT profit drivers Group NPAT (Normalised, $m)1,2 Walk: FY23 to FY24 For personal use only Y24 average Home Loan AUM F 73.7 $1.8b lower than FY23, reflecting NIM protection strategy and not competing with major bank lenders offering cash backs and low rates. (16.9) 1.9 IM compres
Slide 10: Portfolio margin
Portfolio margin. Group margin - down (12bps), driven by higher Home Loan cost of Asset Finance net interest margin1 (bps) For personal use only funds partly offset by higher Asset Finance margin. 183 Jun-24 exit NIM 375bps Home Loan margin - down (22bps), driven by higher cost of funds 324 28 368 (
Slide 11: Funding
Funding. The Group continued to issue significant volume in securities in 2H24 ($1.85b). For personal use only $750m Prime RMBS deal priced in May 2024 at 115bps senior margin. $750m Specialist RMBS deal priced in April 2024 at 135bps senior margin. $350m ABS transaction was priced in March 2024 at
Slide 12: Loan settlements
Loan settlements. Home Loan Asset Finance For personal use only Regaining growth momentum since 2Q24 with competition easing. Organic growth continuing to be driver of AUM growth. FY24 FY24 settlements Increase in active FY24 FY24 settlements Application settlements increased brokers submitting apps
Slide 13: Assets under management (AUM)
Assets under management (AUM). Home Loan Asset Finance For personal use only Home Loan growth returning, post intense competition backdrop. Asset Finance continues strong growth trajectory. FY24 Consecutive months 2H24 vs. 1H24 FY24 Settlement balance 2H24 vs. 1H24 closing AUM of AUM growth AUM incr
Slide 14: Arrears
Arrears. Home Loan Asset Finance For personal use only 90+ days arrears by product (as % closing AUM)1 90+ days arrears (as % closing AUM) 1.62% 1.31% 1.24% 0.63% 0.70% 0.69% 0.57% 0.46% 0.38% 0.45% 0.42% 0.11% 0.15% 0.20% 0.06% 0.07% 0.14% Jun-20 Jun-21 Jun-22 Jun-23 Dec-23 Jun-24 Jun-21 Jun-22 Jun
Slide 15: Prudent loan provisioning
Prudent loan provisioning. Home Loan Asset Finance For personal use only Conservatively provisioned Home Loan portfolio. ollective provision aligned to loss expectations and in line C with industry bench marks. ess than $20m of loan balances with no LMI, dynamic L LVR >90%, and 31+ days in arrears a
Slide 16: Strategic focus and outlook
For personal use only Strategic focus and outlook.
Slide 17: FY25 outlook
Competitive landscape Broker experience Funding & capital Competition to potentially Continued focus on Funding and capital normalise amongst the removing friction positioned to leverage banks with TFF ceasing, within the originations opportunities and creating opportunities and credit approval supp
Slide 18: FY25 priorities
Continue digital Developing our transformation, automation, people, building and For personal use only and operational efficiencies. retaining talent. Diversification into Asset Security, FY25 Finance by organic growth and potential acquisitions. compliance and governance. priorities. Focus on broke
Slide 19: Questions and answers
For personal use only Questions and answers.
Slide 20: Thank you
For personal use only Thank you. Resimac Group Ltd ABN 55 095 034 003 Australian Credit Licence 247829 ASX:RMC
Slide 21: Appendices
For personal use only Appendices.
Slide 22: Home Loan: building momentum
Home Loan: building momentum. Volume Portfolio composition Credit quality For personal use only Settlements ($b) Loan type Loan loss provisions ($m) 6.3 42.5 38.3 4.7 4.8 40.2 3.8 4.3 36.6 1.3 1.5 3.7 40% 2.4 3.4 3.3 2.6 ● Owner occupied 2.5 ● Investment 1.9 60% 1.1 1.8 1.7 0.5 FY20 FY21 FY22 FY23 F
Slide 23: Asset Finance: strong growth
Asset Finance: strong growth. Volume Composition Credit quality For personal use only Settlements ($b) Settlements mix at Jun-24 close Loan loss provisions ($m) 0.8 3.4 11.6 7.9 4% 0.5 ● Auto 25% ● Equipment 41% 2.7 0.4 2.2 ● Secured business 0.7 1.5 ● Other FY23 FY24 30% ● Collective - base + model
Slide 24: Other business updates
Other business updates. Ceasing originations in New Zealand For personal use only esimac announced in June 2024 that it would cease new originations in the New Zealand market from R 1 July 2024. he business was not meeting the Group's return-on-capital threshold while consideration was given to T Ne
Slide 25: Group performance snapshot
FY24 FY23 △ YoY(%) Volume ($b) Originations - Home Loan 4.3 3.7 16% Originations - Asset Finance1 0.8 0.5 60% Group For personal use only Total originations 5.1 4.2 22% performance AUM closing - Home Loan 12.9 13.1 (2%) snapshot ($m) AUM closing - Asset Finance 1.1 0.6 83% Total AUM closing 14.0 13.
Slide 26: Consolidated statement of profit or loss
FY24 FY231 Interest income 995.3 902.1 Interest expense (835.7) (679.6) Net interest income 159.6 222.5 Fee and commission income 6.6 2.6 Consolidated For personal use only Fee and commission expense (16.0) (34.1) Fair value gains on derivatives 0.4 - statement Fair value losses on derivatives Fair
Slide 27: Consolidated statement of financial position
30-Jun-24 30-Jun-231 30-Jun-24 30-Jun-23 ● Assets ● Liabilities ● Equity Cash reconciliation ($m) Cash and bank balances 871.0 1,085.4 Cash at bank and on hand 53.9 22.7 Trade and other receivables 5.1 3.5 Cash collections account 817.1 1,062.7 Loans and advances to customers 14,097.5 13,735.6 Cash
Slide 28: Consolidated statement of cash flows
FY24 FY23 ● Operating activities ● Investing activities ● Financing activities Interest received 1,036.1 900.8 Interest paid (834.6) (658.4) Receipts from loan fees and other income 28.7 28.9 Payments to suppliers and employees (168.9) (160.9) (Payments)/receipts of net loans to/from borrowers (153.
Slide 29: Economic environment
Economic environment. Robust house price growth amid stabilising macroeconomic conditions, although persistent inflation. For personal use only Housing credit ($b)1,2 Cash rate (%) +14.5% -9.9% 4.35 4.35 4.35 4.35 YoY YoY 20.2 4.10 4.10 18.2 19.2 18.2 16.8 +33.3% 17.1 15.6 15.9 YoY 11.6 8.7 9.5 8.0
Slide 30: Environmental, social and governance
For personal use only Environmental, social and governance
Slide 31: Environmental, social & governance
Environmental, social & governance. For personal use only As an ASX-listed entity funding Australian The ESG Committee aligns its focus with the communities, Resimac integrates ESG into United Nations Sustainable Development Goals, all aspects of our business. We recognise concentrating on: that res
Slide 32: Key ESG pillars
Key ESG pillars. For personal use only Resimac’s overarching Environmental, Social and Governance (ESG) purpose comprises the following key pillars: Passion Inclusion Accountability We incorporate We all play a part in We ensure our sustainability into understanding our services are ethical our orga
Slide 33: Environmental. Social. Governance.
Environmental. Social. Governance. We consider climate change, We focus on human capital Resimac’s governance energy efficiency, carbon (remuneration, diversity, equity, structure incorporates footprint reduction, waste and inclusion), human rights, a compliance and risk For personal use only treatm
Slide 34: Charitable partnerships aligned with our ESG goals
Charitable partnerships aligned with our ESG goals. For personal use only Sanctuary Housing: Resimac provides Carbon Positive: Customers can both financial and volunteer support choose tree-planting projects to Sanctuary Housing, a not-for-profit during loan settlements, with crisis accommodation su
Slide 35: Important notice & disclaimer
Important notice Our & disclaimer. values. For personal use only The information in this presentation provides an overview of the results for the period ended 30 June 2024. It is general background information about the activities of Resimac Group Ltd ('Resimac') and is current as at the date of the