Resimac Group Limited · ASX:RMC
Resimac — H1 2023 Earnings Presentation
25 slides from Resimac's earnings presentation, Feb 24, 2023
Slide 1: Resimac Group Ltd 1H23 Results Presentation
For personal use only RESIMAC GROUP LTD 1H23 Results Presentation Scott McWilliam, CEO Jason Azzopardi, CFO
Slide 2: 1H23 key metrics (vs 1H22)
1H23 key metrics (vs 1H22) For personal use only Statutory1 Normalised2 Normalised NPAT Cost to Income Ratio3 NPAT NPAT (excl. FV gains / losses on derivatives) (Normalised) $38.9m $37.5m $40.7m 42.2% 27% 30% 17% 700bps Home loan Home loan Asset Finance 1H23 dividend AUM settlements settlements full
Slide 3: Economic environment
Economic environment For personal use only Housing credit ($b) Cash rate % 4.10 22.2 +18% -30% 3.10 19.1 -28% 16.2 1.85 15.6 11.0 0.85 7.9 0.25 0.10 0.10 0.10 Owner Occupied 1 Investor Loans 1 External Refinances 2 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Aug-22 Dec-22 Jun-23 (FC4) ● Dec 21 ● Dec 22 Big f
Slide 4: Portfolio resilience
Portfolio resilience For personal use only Repayment buffers1, 2 Credit loss exposure based on arrears3 % of loans ahead on repayments (incl. redraw and offset) Loan value with Dynamic LVR >90% and No LMI 10 37% 9 $6.4m $2.1m $1.8m 8 7 21% 21% 1 # of Loans 6 5 4 9% 10% 3 6 2 2 4 1 2% 0 1 31 to 60 61
Slide 5: Home loan arrears
Home loan arrears For personal use only 90+ days arrears by product 90+ days arrears by repayment type 1.91% 0.97% ● Prime ● Specialist ● Principal & interest ● Interest only 0.74% 1.21% 0.65% 0.65% 1.05% 0.80% 0.85% 0.71% 0.76% 0.69% 0.42% 0.46% 0.60% 0.57% 0.66% 0.80% 0.34% 0.35% 0.39% 0.39% 0.33%
Slide 6: Home loan portfolio performance
Home loan JUN 2021 DEC 2021 JUN 2022 DEC 2022 portfolio SPECIFIC PROVISIONS $m For personal use only Prime 0.4 0.7 0.9 0.4 performance Specialist 3.0 3.1 1.5 1.2 Legacy (incl. RHG) 1.8 1.2 1.8 0.9 Other (incl. NZ) 0.2 0.1 0.0 0.0 Specific provisions reduced further to $2.5m driven Total specific pro
Slide 7: Performance highlights
For personal use only Performance highlights.
Slide 8: Financial results summary
Financial results Normalised NPAT excl. FV summary For personal use only losses on derivatives $40.7m 1H23 2H22 1H22 CHANGE CHANGE 1H23 vs 1H22 1H23 vs 2H22 FINANCIAL PERFORMANCE Cost to income ratio NPAT (statutory)1 $38.9m $48.6m $53.5m (27%) (20%) 42.2% Driven by higher operating NPAT (normalised
Slide 9: Settlements
Settlements For personal use only Home loan settlements ($b) ● Prime ● Specialist 2.1 1H23 0.8 1.7 home loan 0.7 0.6 1.6 0.7 settlements $2.4b 1.9 1.7 1.7 1.4 1.4 1.1 0.8 1H20 2H20 1H21 2H21 1H22 2H22 1H23 1H23 settlements $2.4b (-32% vs 1H22) reflecting a 30%1 decrease in system purchase activity.
Slide 10: Home loan AUM
Home loan AUM For personal use only Total home loan assets under Home loan AUM ($b) ● Prime ● Specialist ● Other management of $14.7b 11.4 12.6 13.1 13.8 14.6 15.3 14.7 increased 1%, driven by 0.4 0.3 0.3 Specialist increasing 23% to 0.4 0.5 0.4 5.0 5.9 6.1 $6.1b, partly offset by Prime 0.5 3.8 decr
Slide 11: Home loan net interest margin
Home loan Net interest margin increased Home loan pricing increased margins For personal use only 4bps 197bps Driven by repricing in line with RBA tightening cycle Home loan net interest margin1 (bps) 197 Funding costs Interest rate swap increased receipts increased 191 8bps 8bps 3 171 8 175 Driven
Slide 12: Funding
Funding For personal use only The Group issued $1.2b of Australian and New Zealand Prime and Specialist RMBS in 1H23, reflecting utilisation of lower margin warehouses as settlements reduced. RMBS pricing increased in 1H23, albeit appear to have peaked. 2H23 non-bank deals have upsized and priced ti
Slide 13: Home loan portfolio composition
Home loan portfolio Dynamic LVR bands2,3 % of total portfolio accounts composition For personal use only 52% 0-60% 52% Loan type Repayment type Weighted average portfolio LVR1 62% 26% 17% 39% Prime Specialist 63.5% 66.6% ● Owner ● P&I 60-70% 17% occupied ● I/O 61% 16% ● Investment 74% 18% 70-80% 19%
Slide 14: FY23 outlook
For personal use only FY23 outlook Prime home loan AUM expected to decrease in 2H23, Asset finance AUM remains on track for targeted $1b driven by lower system purchase activity and big four of annualised settlements by FY24, supported by a targeting refinances with aggressive interest rates new dig
Slide 15: Financial results
For personal use only results. Financial
Slide 16: Consolidated statement of profit or loss
HY23 HY22 Consolidated Interest income Interest expense 419.4 (302.2) 241.7 (117.4) statement For personal use only Net interest income 117.2 124.3 of profit or Fee and commission income Fee and commission expense 1.1 (16.8) 5.3 (19.9) loss ($m) Fair value (losses)/gains on derivatives (4.5) 6.1 Fai
Slide 17: Consolidated statement of financial position
31-Dec-22 30-Jun-22 31-Dec-22 30-Jun-22 ● Assets ● Liabilities ● Equity Cash reconciliation ($m) Consolidated Cash and bank balances Trade and other receivables 1,161.0 5.7 932.8 5.7 Cash at bank and on hand Cash collections account 11.8 1,147.7 19.0 912.3 statement For personal use only Loans and a
Slide 18: Consolidated statement of cash flows
HY23 HY22 ● Operating activities ● Investing activities ● Financing activities Consolidated Interest received Interest paid 409.1 (280.5) 246.7 (108.1) statement For personal use only Receipts from loan fees and other income 16.2 21.4 Payments to suppliers and employees (91.3) (97.6) of cash Receipt
Slide 19: Scott McWilliam, CEO
Scott McWilliam For personal use only CEO 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 the financial services sector. This includes
Slide 20: Jason Azzopardi, CFO
Jason Azzopardi For personal use only CFO 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 banking experience includes senior leadersh
Slide 21: Environmental, social & governance
Environmental, social & 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 focused on integrating sustainability into all aspects of our business. Resimac acknowledges that its
Slide 22: Environmental, Social, Governance
Environmental In conducting our business, The social factors we Resimac’s governance Social Governance we consider environmental consider as a business structure incorporates factors such as climate include human capital compliance and risk For personal use only change, energy efficiency, (remunerat
Slide 23: About our business units
About our For personal use only Leading Australian Direct to Customer Via Brokers, Leading NZ Non-Bank business Non-Bank Lender Wholesale Partners & Lender via Brokers & via Brokers & Direct to Customer Direct to Customer Wholesale Partners units Providing a full suite of home loan solutions homeloa
Slide 24: Important notice & disclaimer
Important notice OUR VALUES & disclaimer For personal use only The information in this presentation provides an overview of the results for the period ended 31 December 2022. It is Quality general background information about the activities of Resimac Group Ltd ('Resimac') and is current as at the d
Slide 25: Thank you
For personal use only Thank you.