Slide 1: Resimac Group Ltd 1H22 Results Presentation
1H For personal use only 22 Resimac Group Ltd 1H22 Results Presentation
Slide 2: Our businesses
Our businesses For personal use only DIREC T VIA BROKERS & LEADING AUSTRALIAN LEADING NZ TO CUSTOMER DIREC T TO CUSTOMER NON-BANK LENDE R VIA BROKERS NON-BANK LENDER VIA BROKERS & WHOLE SALE PARTNERS New brand launch backed with December quarter settlements & DIREC T TO CUSTOMER increasing above
Slide 3: Performance highlights
For personal use only Performance highlights. SCOTT MCWILLIAM, CEO JASON AZZOPARDI, CFO
Slide 4: 1H22 key highlights (vs 1H21)
1H22 key highlights (vs 1H21) For personal use only NET PROFIT NET INTEREST COST TO AFTER TAX (NPAT) INCOME INCOME RATIO $53.5m $124.3m 33.4% 6% 2% 230bps HOME LOAN ASSETS HOME LOAN INTERIM DIVIDEND UNDER MANAGEMENT SETTLEMENTS FULLY FRANKED $14.6b $3.5b 4.0c 13% 63% 67% 4
Slide 5: Financial results summary
Financial results summary For personal use only 1H22 1H21 CHANGE 6% Increase in 2% Increase in FINANCIAL PERFORMANCE Net Profit Net Interest After Tax Income NPAT (statutory) $53.5m $50.5m 6% (Driven by higher Net Interest (Driven by AUM growth, Income and lower impairments) partly offset by lower m
Slide 6: Profitable growth
Profitable growth For personal use only NET PROFIT AFTER TAX (NORMALISED) ($m) COST TO INCOME RATIO (NORMALISED) 60 70% 50 60% 53.5 53.5 50.5 50% 57.8% 55.4% 40 40% 30 42.1% 28.8 30% 34.6% 33.1% 33.4% 20 26.9 31.1% 20% 10 14.5 16.6 10% - - 1H19 2H19 1H20 2H20 1H21 2H21 1H22 1H19 2H19 1H20 2H20 1H21
Slide 7: Settlements
Settlements For personal use only 1H22 settlements increased 63%, driven by 190% growth in Specialist, where our flexible Near Prime products resonate strongly with customers and brokers. Prime settlements were 2% lower than 1H21 driven by aggressive price competition and increased consumer pref
Slide 8: Home loan AUM
Home loan AUM For personal use only Home loan assets under management increased 13% compared to 31 December 2021 (c1.8x system growth1). ew Zealand increased 20% to $0.8b as Resimac continues its trajectory as the leading NZ non-bank lender. N pecialist AUM increased 45% driven by record 1H22 set
Slide 9: Home loan margins
Home loan margins For personal use only GROUP NET INTEREST MARGIN (bps) 211 5 205 2 1H22 Net BBSW / BKBM 9 191 Interest Margin 1H22 (13) (1) decreased average (22) 14bps 4bps 1H22 funding costs Home loan pricing decreased decreased 9bps 22bps (Driven by benefits of lower (Driven by higher yield back
Slide 10: Funding
Funding For personal use only The Group issued $3.8b of Australian and NZ Prime and Specialist RMBS in 1H22. RMBS pricing bottomed in 2H21, however new issuance margins remain lower than historical averages. AUSTRALIA RMBS ISSUANCE TERM PROFILE ($b) AUSTRALIA RMBS SENIOR MARGIN (bps) 4.0 180 165
Slide 11: Home loan portfolio composition
Home loan portfolio composition For personal use only WEIGHTED AVERAGE WEIGHTED AVERAGE PORTFOLIO LVR PORTFOLIO DYNAMIC LVR* Prime Specialist Prime Specialist 65.6% 68.2% 60.0% 65.3% *Dynamic LVR = LVR based on latest CoreLogic individual property valuations. LOAN PURPOSE LOAN TYPE GEOGRAPHIC LOCATI
Slide 12: Home loan portfolio performance
Home loan portfolio DYNAMIC LVR BANDS (% of total portfolio accounts) performance For personal use only LVR <60% ARREARS (%) 2.25% LVR 60%-70% 1.96% 1.78% 1.56% 1.56% 1.60% 1.50% LVR 70%-80% 1.38% 1.35% 0.76% 0.83% 0.84% 0.72% 0.75% 0.70% 0.69% 0.68% 0.66% 0.79% LVR 0.68% 0.65% 0.59% 80%-90% 0.60% 0
Slide 13: Home loan portfolio performance
Home loan portfolio performance JUN 2020 DEC 2020 JUN 2021 DEC 2021 For personal use only HOME LOAN SPECIFIC PROVISIONS $m Prime 0.6 0.6 0.4 0.7 Specialist 3.4 3.6 3.0 3.1 Legacy 1.9 1.9 1.8 1.2 Other (incl. NZ) 0.2 0.0 0.2 0.1 Lower Specific Provisions Total specific provisions 6.1 6.1 5.4 5.1 $5.1
Slide 14: Hardship analysis
Hardship analysis For personal use only COVID-19 customer impacts managed well with the number of customers in hardship decreasing materially. ACTIVE PAYMENT DEFERRALS AT 31 DECEMBER 20201 ACTIVE PAYMENT DEFERRALS AT 31 DECEMBER 20211 40,000 4.0% 40,000 1.00% 36,358 3.47% 0.91% 0.90% 35,000 33,847
Slide 15: Strategic priorities
For personal use only Strategic priorities. SCOTT MCWILLIAM, CEO
Slide 16: Strategy update
Strategy update For personal use only 1H22 Home Loan Resimac Asset New origination platform settlements Finance originations providing material scale $3.5b platform Phase 1 benefits for application roll out process live on track for $8b FY24 target Q1 FY23 Dec 2022 December quarter Asset Rolled out
Slide 17: Resimac Asset Finance
Resimac Asset For personal use only Finance Distribution COMMERCIAL Channels CONSUMER AUTO & BROKERS Addressable AUTO EQUIPMENT Leverage existing Resimac market Aggregator relationships DIRECT Opportunity Instant digital approval to customer via $120b+ PROPERTY INSURANCE car dealers or rate comparis
Slide 18: Financial results
For personal use only results. Financial
Slide 19: Consolidated Statement of Profit or Loss
1H22 1H21 CONSOLIDATED STATEMENT OF PROFIT OR LOSS ($m) FOR THE PERIOD ENDED 31 DECEMBER 2021 Interest income 241.7 235.6 For personal use only Interest expense (117.4) (113.5) Net interest income 124.3 122.1 Fee and commission income 5.3 4.9 Fee and commission expense (19.9) (17.8) Other income 6.6
Slide 20: Consolidated Statement of Financial Position
31-DEC-21 30-JUN-21 Cash reconciliation ($m) 31-DEC-21 30-JUN-21 CONSOLIDATED STATEMENT OF FINANCIAL POSITION ($m) AS AT 31 DECEMBER 2021 Cash and bank balances 963.8 619.8 Cash at bank and on hand 84.4 50.6 Trade and other receivables 4.8 4.6 Cash collections account 877.9 567.7 Loans and advances
Slide 21: Consolidated Statement of Cash Flows
1H22 1H21 CONSOLIDATED STATEMENT OF CASH FLOWS ($m) FOR THE PERIOD ENDED 31 DECEMBER 2021 Interest received 246.7 239.8 OPERATING ACTIVITIES Interest paid (108.1) (106.3) For personal use only Receipts from loan fees and other income 21.5 23.5 Payments to suppliers and employees (97.6) (83.9) Paymen
Slide 22: Scott McWilliam, Chief Executive Officer
Scott For personal use only McWilliam CHIEF EXECUTIVE OFFICER CHIEF EXECUTIVE OFFICER Scott is responsible for managing the overall operations of the organisation, its people and resources, and ensures the implementation of the strategy agreed with the Board. Scott has over 25 years’ experience in t
Slide 23: Jason Azzopardi, Chief Financial Officer
Jason For personal use only Azzopardi CHIEF FINANCIAL OFFICER CHIEF FINANCIAL OFFICER Jason joined the Resimac Group in July 2018 as Chief Financial Officer. Prior to Resimac, Jason held senior finance roles in private equity in London. Since relocating to Australia in 2011, Jason’s extensive retail
Slide 24: Environmental, social and governance
Environmental, social and governance For personal use only As an Australian ASX Listed entity with several licences providing funding for a number of Australian and New Zealand communities, Resimac is focusing on integrating sustainability into all aspects of our business. Resimac acknowledges that
Slide 25: About our business units
About our business units For personal use only Resimac has expanded its operations both in Australia and New Zealand by completing acquisitions and making investments into complementary businesses. These acquisitions and investments provide for a broader and more diversified distribution model which
Slide 26: Our values; Important notice & disclaimer
Our values For personal use only INTEGRITY & QUALITY PASSION RESPECT AGILITY PROFESSIONALISM ACCOUNTABILITY IMPORTANT NOTICE & DISCLAIMER The information in this presentation provides an overview of the results for the period ended 31 December 2021. It is general background information about the act
Slide 27: Thank you
For personal use only Thank you.