Resimac Group Limited · ASX:RMC
Resimac — FY2022 Earnings Presentation
33 slides from Resimac's earnings presentation, Aug 26, 2022
Slide 1: Resimac Group Ltd FY22 Results Presentation
FY 22 For personal use only Resimac Group Ltd FY22 Results Presentation
Slide 2: Overview
OVERVIEW BUILD For personal use only Record annual home loan settlements ($6.3b) TOWARDS Home loan portfolio over $15b, up 11% D iversified and digitally enabled home loan FY22 normalised NPAT $104.4m (excluding and asset finance lender delivering higher non-cash FV gain on interest rate swap
Slide 3: FY22 key highlights (vs FY21)
FY22 key highlights (vs FY21) For personal use only STATUTORY1 NORMALISED2 NORMALISED2 NPAT COST TO INCOME NPAT NPAT (EXCL. FV GAINS ON INTEREST RATE SWAPS) RATIO (NORMALISED) $102.1m $104.4m $86.2m 33.4% 5% Flat 16% 130bps HOME LOAN HOME LOAN ASSET FINANCE FY22 DIVIDEND AUM SETTLEMENTS SETTLE
Slide 4: Economic outlook
Economic outlook For personal use only UNEMPLOYMENT RATE % (Calendar year average) CASH RATE % 6.5 3.05 2.95 5.2 5.1 1.85 3.8 3.8 0.85 0.25 0.10 0.10 0.10 2019 2020 2021 2022 JUN 2023 SPOT JUN-20 DEC-20 JUN-21 DEC-21 JUN-22 AUG-22 DEC-22 JUN-23 (July YTD) (FC)1 (FC)2 (FC)2 HOUSING CREDIT GROWTH % (F
Slide 5: Resimac resilience throughout cycles
Resimac resilience throughout cycles For personal use only NORMALISED NPAT GROWTH DESPITE HIGHER BBSW1 NET INTEREST MARGIN % 32bps 2.07% 87% 1.91% 86% 1.81% 21bps 1.64% 1.53% 61% 5bps Normalised NPAT Growth 18% (Flat) (6bps) Average (11bps) BBSW Above Cash Rate FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY2
Slide 6: Portfolio resilience
Portfolio resilience For personal use only REPAYMENT BUFFERS1, 2 NET SERVICEABILITY RATIO (NSR)2 % of loans ahead on repayments (incl. redraw and offset) % of all home loans originated 40% 30% 35% 30% 36% 20% 25% 21% 20% 25% 20% 19% 10% 10% 9% 10% 0% 0.5% 0% Overdue On time 0-3 months 3-12 months 1-
Slide 7: Profitable growth
Profitable growth For personal use only NET PROFIT AFTER TAX (NORMALISED) ($m) 104.0 104.4 55.6 31.1 FY19 FY20 FY21 FY22 Collective Provision COST TO INCOME RATIO (NORMALISED) macroeconomic overlay increased 56.6% 37.9% 32.1% 33.4% $9.0m in 2H22 FY19 FY20 FY21 FY22 NET PROFIT AFTER TAX (NORMALISED)
Slide 8: Performance highlights
For personal use only Performance highlights. SCOTT MCWILLIAM, CEO JASON AZZOPARDI, CFO
Slide 9: Financial results summary
Financial results summary For personal use only Normalised NPAT $104.4m FY22 1H22 2H22 FY21 CHANGE FINANCIAL PERFORMANCE 2H22 NPAT Lower Driven by $9.0m increase NPAT (statutory)* $102.1m $53.5m $48.6m $107.6m (5%) NPAT (normalised) * $104.4m $53.5m $50.9m $104.0m Flat to Collective Provision overla
Slide 10: Settlements
Settlements For personal use only FY22 settlements of $6.3b increased 30% driven by success of Specialist offering, partly offset by lower Prime settlements. 2H22 settlements decreased 20% driven by seasonality and short-term impact of new origination system roll out. In addition to macroecono
Slide 11: Home loan AUM
Home loan AUM For personal use only Home loan assets under management increased 11% to $15.3b driven by Specialist AUM increasing 55% to $5.9b. New Zealand increased 12% to $0.9b (AU$0.8b) where Resimac continues to pursue higher yield market share opportunities. Home Loan AUM Direct to consum
Slide 12: Home loan margins
Home loan margins For personal use only HOME LOAN NET INTEREST MARGIN (bps) 250 Home loan pricing FY22 Funding costs decreased decreased 207 200 13 30bps 13bps (30) (9) 181 (Driven by higher yield back (Driven by lower 150 book run-off and competitive CY21 RMBS new business pricing) issuance) NIM do
Slide 13: Balance sheet
For personal use only Balance sheet. SCOTT MCWILLIAM, CEO JASON AZZOPARDI, CFO
Slide 14: Balance sheet
Balance sheet For personal use only Strong Balance Sheet providing platform for growth and provisioned for economic uncertainty. FUNDING PROVISIONING CAPITAL Onshore and offshore banking partners Credit quality continues to improve Continue a capital efficient model providing warehouse facil
Slide 15: Funding
Funding For personal use only The Group issued $5.8b of Australian and NZ Prime and Specialist RMBS in FY22. RMBS pricing decreased materially in CY21, driving 13bps reduction in FY22 funding costs. RMBS pricing increased in CY22 to pre-COVID levels. The Group will utilise large warehouse limi
Slide 16: Home loan portfolio performance
Home loan portfolio DEC 2020 JUN 2021 DEC 2021 JUN 2022 performance HOME LOAN SPECIFIC PROVISIONS $m For personal use only Prime 0.6 0.4 0.7 0.9 Specialist 3.6 3.0 3.1 1.5 Legacy 1.9 1.8 1.2 1.8 Lower Specific Provisions Other (incl. NZ) 0.0 0.2 0.1 0.0 $4.2m Total specific provisions 6.1 5.4 5.1 4.
Slide 17: Portfolio analysis
For personal use only Portfolio analysis. SCOTT MCWILLIAM, CEO JASON AZZOPARDI, CFO
Slide 18: Home loan portfolio composition
Home loan portfolio DYNAMIC LVR BANDS3 (% of total portfolio accounts) composition 45% For personal use only LVR <60% 45% 52% WEIGHTED AVERAGE REPAYMENT TYPE 26% PORTFOLIO LVR1 16% LOAN TYPE LVR 38% 17% Prime 60%-70% 62% 74% 64.4% 17% Specialist 19% 67.6% 1 LVR based on current loan balance and LVR
Slide 19: Home loan arrears
Home loan arrears For personal use only 90+ DAYS ARREARS BY PRODUCT 90+ DAYS ARREARS BY REPAYMENT TYPE 2.0% 1.5% 1.25% 1.66% 1.00% 1.22% 1.09% 1.0% 0.99% 0.98% 0.91% 0.7% 0.65% 0.74% 0.58% 0.56% 0.62% 0.71% 0.79% 0.39% 0.37% 0.40% 0.65% 0.39% 0.31% 0.31% 0.43% 0.25% 0.25% 0.27% 0.16% 0.11% 0.11% 0.1
Slide 20: Strategic priorities
For personal use only Strategic priorities. SCOTT MCWILLIAM, CEO
Slide 21: FY23 outlook
FY23 outlook For personal use only H ome loan AUM - Prime AUM growth subdued driven by fierce competition and lower system Asset finance AUM - remain on track for targeted growth. We expect continued growth in Specialist $1b of annual settlements by FY24 supported by a AUM as we pursue higher mar
Slide 22: The opportunity
The For personal use only opportunity CONSUMER ADDRESSABLE MARKET SECURED SME VEHICLE EQUIPMENT BUSINESS LOANS FINANCE & LEASING over $50b INSURANCE CONSUMER PREMIUM FUNDING AUTO COMMERCIAL ADDRESSABLE MARKET over $100b 22
Slide 23: Financial results
For personal use only results. Financial
Slide 24: Consolidated statement of profit or loss
FY22 FY21 CONSOLIDATED STATEMENT OF PROFIT OR LOSS ($m) FOR THE YEAR ENDED 30 JUNE 2022 Interest income 490.7 467.6 Interest expense (252.6) (224.9) For personal use only Net interest income 238.1 242.7 Fee and commission income 8.2 9.9 Fee and commission expense (40.5) (35.2) Other income 28.6 8.0
Slide 25: Consolidated statement of financial position
30-JUN-22 30-JUN-21 Cash reconciliation ($m) 30-JUN-22 30-JUN-21 CONSOLIDATED STATEMENT OF FINANCIAL POSITION ($m) AS AT 30 JUNE 2022 Cash and bank balances 932.8 619.8 Cash at bank and on hand 19.0 50.6 Trade and other receivables 5.7 4.6 Cash collections account 912.3 567.7 Loans and advances to c
Slide 26: Consolidated statement of cash flows
FY22 FY21 CONSOLIDATED STATEMENT OF CASH FLOWS ($m) FOR THE YEAR ENDED 30 JUNE 2022 Interest received 500.5 478.2 OPERATING ACTIVITIES Interest paid (227.2) (211.9) Receipts from loan fees and other income 38.9 49.8 For personal use only Payments to suppliers and employees (180.7) (167.7) Payments o
Slide 27: 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 th
Slide 28: 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 29: 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 30: Resimac's ESG strategy alignment
Resimac's ESG OFFERINGS OPERATING MODEL For personal use only strategy Delivering lending solutions that are flexible and technology-enabled, with a superior Supported by a fit-for-purpose and service experience to customers and brokers technology-enabled operation model/s. who are strong advocates
Slide 31: 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 32: Our values; Important notice and 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 30 June 2022. It is general background information about the activit
Slide 33: Thank you
For personal use only Thank you.