Humm Group Limited · ASX:HUM
Humm — H1 2025 Earnings Presentation
24 slides from Humm's earnings presentation, Feb 18, 2025
Slide 1: 1H25 Interim Results for the half-year ended 31 December 2024
@hunmgroup FOR THE HALF-YEAR ENDED 31 DECEMBER 2024 Stuart Grimshaw CEO | Adrian Fisk CFO 18 February 2025, Authorised for release by the hummgroup Board of Directors retest ees INTERIM RESULTS Level 1, 121 Harrington Street, The Rocks, Sydney NSW 2000
Slide 2: Disclaimer
1H25 INTERIM RESULTS // 18 FEBRUARY 2025 DISCLAIMER No recommendation, offer, invitation or advice and its related bodies corporate, directors, officers, employees, advisers and agents disclaim all This presentation is not a financial product or investment advice or recommendation, offer or liabilit
Slide 3: Agenda
1H25 RESULTS // FEBRUARY 2025 01 HIGHLIGHTS 02 FINANCIALS AGENDA 03 SUMMARY 04 APPENDICES 3
Slide 4: Highlights
01 HIGHLIGHTS
Slide 5: Strong Performance
1H25 INTERIM RESULTS // 18 FEBRUARY 2025 STRONG PERFORMANCE 01 02 03 04 05 06 $29.8m 11.0c 10.9% 52.4% Credit losses 1.25c Cash profit cash earning ROCE3, Cost to income maintained at Fully franked (after tax), per share2, up 122% ratio 18% historic low of interim up 119% up 124% on pcp reduction 1.
Slide 6: Group Key Performance Metrics
1H25 INTERIM RESULTS // 18 FEBRUARY 2025 GROUP KEY PERFORMANCE METRICS INCREASED SHAREHOLDER VALUE DELIVERING COST EFFICIENCY 10.9% Commencement of savings program $97.4m Cash profit 8.1% Inflation-adjusted $96.5m (after tax) 6.3% operating expenses1 ROCE4 4.9% 3.5% $29.8m Operating $92.0m $22.3m ex
Slide 7: Capital Management and Shareholder Distributions
1H25 INTERIM RESULTS // 18 FEBRUARY 2025 CAPITAL MANAGEMENT AND SHAREHOLDER DISTRIBUTIONS CAPITAL MANAGEMENT ACTIVITIES ROCE (%) AND CASH EARNING PER SHARE (CENTS) 12.0% 11.0¢ 12.2 12.0 11.8 40.00 $37.5m 11.6 11.4 11.2 11.0 10.8 10.6 10.4 10.2 10.0 35.00 LTIP Purchase 10.0% 9.8 9.6 9.4 $6.1m 8.1¢ 9.
Slide 8: Growth from Technology and Transformation Initiatives
1H25 INTERIM RESULTS // 18 FEBRUARY 2025 GROWTH FROM TECHNOLOGY AND TRANSFORMATION INITIATIVES To be executed within our CAPEX and OPEX envelope TRANSFORMING OUR PLATFORMS MODERNISING INFRASTRUCTURE LENDING STATUS: IMPLEMENTATION TOWARDS SOFTWARE CARDS STATUS: PREPARATION AS A SERVICE CUSTOMER X STA
Slide 9: Financials
O2 | FINANCIALS
Slide 10: Hummgroup Financial Performance
1H25 INTERIM RESULTS // 18 FEBRUARY 2025 HUMMGROUP FINANCIAL PERFORMANCE HUMMGROUP ($M) 1H24 2H24 1H25 1H25 vs 1H24 1H25 vs 2H24 STRONG PERFORMANCE ACROSS ALL METRICS Net interest income 122.7 128.7 130.6 6% 1% • 119% increase in Cash profit (after tax) to $29.8m. Net operating income 152.6 158.5 16
Slide 11: Commercial
1H25 INTERIM RESULTS // 18 FEBRUARY 2025 COMMERCIAL HUMMGROUP ($M) 1H24 2H24 1H25 1H25 1H25 CONTINUED MOMENTUM IN COMMERCIAL BUSINESS vs 1H24 vs 2H24 • Cash profit (after tax) up 35% from 1H24. Net interest income 45.2 48.6 51.2 13% 5% • Assets under management grew 18% from pcp. Net operating incom
Slide 12: Consumer Finance
1H25 INTERIM RESULTS // 18 FEBRUARY 2025 CONSUMER FINANCE ($M) 1H24 2H24 1H25 1H25 1H25 IMPROVED RESULTS WITH STABLE NIM vs 1H24 vs 2H24 • Cash profit (after tax) up 154% from pcp. Net interest income 77.5 80.1 79.4 2% (1%) • Receivables up 10% from pcp. • Net interest income up 2% from pcp. Net ope
Slide 13: Portfolio Net Interest Margin Remains Stable in 1H25
1H25 INTERIM RESULTS // 18 FEBRUARY 2025 PORTFOLIO NET INTEREST MARGIN (“NIM”) REMAINS STABLE IN 1H25 ` • Portfolio NIM2 held constant at 5.5% from pcp. • 1H25 exit NIM2 of 5.4% as Commercial business targeting premium assets following market competition. 1. After impact of Forward Flow arrangement.
Slide 14: Credit Risk Management
1H25 INTERIM RESULTS // 18 FEBRUARY 2025 CREDIT RISK MANAGEMENT NET LOSS1 TO ANR 1H24 2H24 1H25 1H25 1H25 NET LOSSES vs 1H24 vs 2H24 • Group net loss/ANR remain at historical Commercial 0.5% 0.7% 0.8%2 30bps 10bps low level of 1.8%. PosPP 3.1% 2.9% 2.2% (90bps) (70bps) • Commercial net loss /ANR inc
Slide 15: Differentiated Funding Platform
1H25 INTERIM RESULTS // 18 FEBRUARY 2025 DIFFERENTIATED FUNDING PLATFORM UNLOCKS GROWTH RELATIVE TO COMPETITORS FORWARD FLOW ARRANGEMENT DELIVERS NEW REVENUE • Diversified funding base with mix of warehouse funding, mezzanine STREAMS WITH A CAPITAL LITE FOOTPRINT funding, private placements, term de
Slide 16: Summary
O03 | SUMMARY
Slide 17: Outlook – Foundation Set for Profitable Growth
1H25 INTERIM RESULTS // 18 FEBRUARY 2025 OUTLOOK – FOUNDATION SET FOR PROFITABLE GROWTH Strong and Continued Ongoing cost Focus on Strong stable balance improvement in management technology performance sheet with credit quality as that delivers investments to driving warehouse receivables savings to
Slide 18: Appendices
O04 | APPENDICES
Slide 19: To Be the Provider of Finance for Bigger Purchases
1H25 INTERIM RESULTS // 18 FEBRUARY 2025 TO BE THE PROVIDER OF FINANCE FOR BIGGER PURCHASES CONSUMER FINANCE ANZ leading provider The bigger POSITIONING of specialist asset finance buy now pay later CORE EXPERTISE ASSETS UNDER $3.2b1 $2.1b MANAGEMENT >> Instant credit decisioning Logistics // Engine
Slide 20: Executing Cost Efficiency
1H25 INTERIM RESULTS // 18 FEBRUARY 2025 EXECUTING COST EFFICIENCY 1 ` 1H25 1H25 IMPROVED OPERATING LEVERAGE (COST TO INCOME RATIO2) OPERATING EXPENSES ($M) 1H24 2H24 1H25 vs 1H24 vs 2H24 Marketing 6.8 4.0 5.1 (1.7) 1.1 Employment 44.4 43.9 46.2 1.8 2.3 64.0% 64.0% Professional and outsourced operat
Slide 21: Flexicommercial: Credit Quality – Strong Asset Diversification
1H25 INTERIM RESULTS // 18 FEBRUARY 2025 flexicommercial: CREDIT QUALITY – STRONG ASSET DIVERSIFICATION ASSET CATEGORY SECTOR CONCENTRATION GEOGRAPHICAL CONCENTRATION DIVERSE CUSTOMER BASE ` WEIGHTED AVERAGE CREDIT RISK RATING BROAD BASED EXPOSURE AND DIVERSIFICATION Credit worthiness rated from 10
Slide 22: Consumer Business Segment Update
1H25 INTERIM RESULTS // 18 FEBRUARY 2025 CONSUMER BUSINESS SEGMENT UPDATE GROWTH IN RECEIVABLES ($M) AND YIELD1 (%) HIGHER PRODUCT YIELD1 (%) 20.6% 21.2% 19.6% 19.3% 20.1% 18.6% 6 6 0 2 4 .0 % 4 3 0 2 1 .0 % 6 4 0 2 1 .0 % 4 2 0 1 8 .0 % 6 2 0 1 8 .0 % Cards Cards 4 1 0 1 5 .0 % 6 0 1 5 .0 % NZ AU 4
Slide 23: Business Metrics
1H25 INTERIM RESULTS // 18 FEBRUARY 2025 BUSINESS METRICS FLEXICOMMERCIAL (AU/NZ) 1H24 2H24 1H25 HUMM AUSTRALIA3 1H24 2H24 1H25 Volume (A$m) 761.5 772.9 770.4 Total volume (A$m) from continuing products 354.7 365.8 376.8 5 Assets under management 2,702.2 2,987.7 3,178.4 Closing loans and advances (A
Slide 24: Thank You
enmms | THANK YOU