Humm Group (HUM) investor relations material

Executive summary

• Statutory profit after tax for 1H26 was $13.9m, up 13% sequentially but down 49% year-over-year, reflecting higher credit losses, absence of prior period one-off benefits, and increased litigation and regulatory costs.

• Assets under management reached $5.4b, up 1.3% year-over-year but down 2% sequentially, with Commercial AUM up and Consumer AUM down.

• Interim dividend of 1.50 cents per share declared, payable in March 2026.

• The group remains focused on profitable growth, credit discipline, and technology investment, with operational momentum in core portfolios.

Financial highlights

• Net interest income rose to $134.4m, with net interest margin stable at 5.5%.

• Cost-to-income ratio was 57.4%, impacted by $8.3m in irregular items; would have been 52.5% excluding these.

• Net credit loss to ANR was 2.0%, up 15bps year-over-year, with Commercial losses peaking and expected to normalize.

• Return on equity improved to 5.4% from 4.8% in 2H25.

• Annualised statutory EPS was 5.6c, up 15% sequentially but down 46% year-over-year.

Outlook and guidance

• Commercial net credit losses expected to moderate in 2H26 as portfolio seasoning effects subside.

• Technology investment costs are expected to subside after the current phase, with transformation costs likely to decrease toward the second half of FY27.

• New regulated hybrid Point-of-Sale product in Australia and expanded Forward Flow arrangement expected to enhance profitability and returns.

• Focus remains on cost management, credit quality, and technology transformation.