Liberty Financial Group Ltd · ASX:LFG
Liberty Financial — H1 2021 Earnings Presentation
30 slides from Liberty Financial's earnings presentation, Feb 25, 2021
Slide 1: Half Year Results
For personal use only Liberty Financial Group Click to edit Master text styles Half Year Results FEBRUARY 2020
Slide 2: Presenting today
Presenting today… For personal use only Click to edit Master text styles James Boyle Peter Riedel Chief Executive Officer Chief Financial Officer 2
Slide 3: Agenda
Agenda For personal use only Click to edit Master text styles 01 Business Update 02 Financial Update 03 Q&A
Slide 4: Business Update
For personal use only Click to edit Master text styles Business Update
Slide 5: Liberty Financial business overview
Business For personal use only Click to edit Master text styles Liberty Financial Durable Business Model Diversified Portfolio Started 1997 and only investment Advanced risk-management grade (BBB-/stable/A-3) non-bank capabilities Pioneered specialty finance industry Proprietary technology supports
Slide 6: Strategy
Strategy For personal use only ClickPurpose to edit Master text styles Focus Capabilities Tec ng hn ici ol erv og S y Helping more k Management Customer Experience Risk Adjusted Returns people get Culture financial Ris is D tr ib ng u tio di n Fu n Customer Choice Free-Thinking Values Fair Learning
Slide 7: Financial Highlights
Financial Highlights For personal use only Click to edit Master text styles % Underlying NPATA Total revenue NIM $117.7m ($74.3m) $433.1m ($433.2) 3.07% (2.50%) +58% +0% +57bps BDD Cost to income Underlying ROA 0bps (1bps) 21.4% (24.4%) 2.0% (1.3%) -1bps -300bps +70bps * Balances represent: 1H21 (1H
Slide 8: Business Highlights
Business Highlights For personal use only Click to edit Master text styles Return to growth in loan originations and average assets Ongoing growth in revenue and net profit Continuing strength in Return on Assets COVID portfolio risk exposure effectively managed Strong capital and liquidity position
Slide 9: Business Highlights
Business Highlights For personal use only Click to edit Master text styles Average financial assets New assets originated COVID arrangements $12.0b ($11.5b) $2.0b ($1.8b) $262m ($1,133m) +4% +11% -77% Staff Broker NPS Customer NPS 454 (438) 75 (63) 54 (49) +4% +19% +10% * Balances represent: 1H21 (1
Slide 10: Prospectus Forecast
Prospectus Forecast For personal use only Click to edit Master text styles Key Metric 1H21 FY21 Avg Earning Assets $12.0b $11.9b Key metrics tracking to or above FY21 forecast Underlying FY21 NPATA is expected to be in excess Total revenue $433m $838m of $200m given the difference between the curren
Slide 11: Financial Update
For personal use only Click to edit Master text styles Financial Update
Slide 12: Financial Highlights
Financial Highlights For personal use only Click to edit Master text styles % Underlying NPATA Total revenue NIM $117.7m ($74.3m) $433.1m ($433.2) 3.07% (2.50%) +58% +0% +57bps BDD Cost to income Underlying ROA 0bps (1bps) 21.4% (24.4%) 2.0% (1.3%) -1bps -300bps +70bps * Balances represent: 1H21 (1H
Slide 13: Profit Performance
Profit Performance For personal use only Underlying NPATA ($’m) Statutory NPATA ($’m) Click to edit Master text styles 117.7 88.9 85.9 74.3 66.3 74.3 19.6 66.3 1H20 2H20 1H21 1H20 2H20 1H21 Growth in underlying NPATA One-time IPO costs explains difference between 1H21 • 58% compared to 1H20 underlyi
Slide 14: Profit Drivers
Profit Drivers For personal use only Total Revenue ($’m) BDD (bps) Click to edit Master text styles Stable revenue 1H21 v 1H20 27 2H20 BDD driven by 23bps increase 433.2 419.1 433.1 Revenue growth 3% 1H21 v 2H20 in collective provision for COVID Growth trajectory returned in 1H21 realised losses (4b
Slide 15: Revenue
Revenue For personal use only Average Assets ($’b) Non-Interest Income ($’m) Click to edit Master text styles 12.0 117 11.7 Average asset growth 4% 1H21 v Strong growth 1H21 v 1H20 (15%) 11.5 102 100 1H20 and v 2H20 (17%) New financial asset origination Growth in aggregation networks and $2.0b (v$1.
Slide 16: Cost of Funds
Cost of Funds For personal use only Cost of Funds (bps) Total Financing ($’b) Click to edit Master text styles 326 0.5 0 12.3 11.8 267 217 229 225 210 97 42 7 30 Jun Term W’Sale 31 Dec 1H20 2H20 1H21 2020 Issues Mov’t 2020 Reduction in total cost of funds correlated with reduction in Issued $2.3b in
Slide 17: BDD
BDD For personal use only 1H20 (1 bps) 1H21 (0 bps) Click to edit Master text styles 14 (16) 4 (9) 7 (4) (1) 6 Realised Specific Specific Collective Realised Specific Specific Collective Loss Provision Provision Provision Loss Provision Provision Provision (Release) (Increase) (Release) (Increase) 2
Slide 18: Cost to Income
Cost to Income For personal use only $’m 1H20 2H20 1H21 Click to edit Master text styles Increase in commissions paid to brokers Fees and commissions (gross) 93.2 94.5 106.3 consistent with increase in commission income earned from lenders Fees and commissions (net) 8.7 5.2 11.2 Growth in net fees a
Slide 19: COVID
COVID For personal use only Click toCOVID edit Master textcustomers impacted styles making +30 day Delinquency (%) partial payments ($’m) 8.41 1,133 (10%) 3.92 887 532 (4%) 262 (2%) 2.63 462 240 232 68 29 6 1 2 Jun 20 Sep 20 Dec 20 1H20 2H20 1H21 Material reduction in customers impacted by COVID bot
Slide 20: Loss Provisions
Loss Provisions For personal use only Provisions by Nature ($’m) Specific provisions at Dec-20 ($22m) Portfolio by Stage ($’m) Collective Provision by Stage ($’m) consistent with Jun-20 Click to edit Master 12,020 text styles 77 77 Collective provisions at Dec-20 11,573 11,712 56 54 ($55m) consisten
Slide 21: Segments
Segments For personal use only Average Assets ($’m) Net Revenue ($’m) Click to edit Master text styles 11,749 11,991 294 11,509 255 Average asset growth in all 236 Strong growth in 1H21 net 8,530 segments in 1H21 v 1H20 and 2H20 111 revenue in all segments v 1H20 8,450 97 8,525 As expected, stronger
Slide 22: Financial Position
Financial Position For personal use only $’m Click to edit Master text stylesJun 20 Dec 20 Liberty Financial corporate rating BBB- (Stable) affirmed Cash 498 771 by S&P on 27 Oct 20 and again on 25 Nov 20 following IPO announcement Financial assets 11,659 11,976 Loans previously funded on balance sh
Slide 23: Questions
For personal use only Click to edit Master text styles Questions
Slide 24: Appendix
For personal use only Click to edit Master text styles Appendix
Slide 25: Profit or Loss
Profit or Loss For personal use only $’000 1H21 1H20 Click to edit Master text styles Finance income 422,106 423,245 Fee, commission and other income 11,029 9,920 Total revenue 433,135 433,165 Finance expense (236,441) (280,544) Bad and doubtful debts 260 (975) Personnel expenses (56,701) (33,472) O
Slide 26: Reconciliation Statutory to Pro-Forma
Reconciliation Statutory to Pro-Forma For personal use only Click to edit Master text styles $’m 1H21 1H20 Statutory NPAT 83.0 74.3 IP Amortisation 5.9 - Statutory NPATA 88.9 74.3 Non-recurring personnel costs 20.1 - IPO offer costs 12.4 - Tax effect of adjustments (3.7) - Adjustments 28.8 - Underly
Slide 27: Balance Sheet
Balance Sheet For personal use only $’000 Dec 20 Jun 20 Cash text Click to edit Master and styles cash equivalents 770,890 498,467 Financial assets 11,976,226 11,658,874 Intangible assets 293,695 299,937 Loans to related parties 236,518 325,871 Other assets 275,767 252,917 Total assets 13,553,096 13
Slide 28: Products & Services
Products & Services For personal use only Residential Finance Financial Services Australian mortgages Personal loans Click to edit Master text styles • Personal loans in Australia • Prime and custom lending for residential owner occupier and investment properties SME loans • SME loans in Australia N
Slide 29: Disclaimer
Disclaimer For personal use only The information provided in this presentation and any information supplied in connection with this presentation (“Presentation”) has been prepared by Liberty Financial Group Limited (ACN 125 611 574) (“Company”) and Liberty Fiduciary Ltd (ACN 119 884 623) as the resp
Slide 30: Thank you
For personal use only Click to edit Master text styles Thank you
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