Liberty Financial Group (LFG) H1 2025 earnings summary

Executive summary

• Achieved profit growth in a highly competitive environment, with stable net interest margin (NIM) and continued portfolio diversification.

• Strong balance sheet with 12% underlying cash ROE and stabilizing customer hardship.

• Maintained high broker and customer net promoter scores, with ongoing investment in digital customer experience.

• Liberty Financial Group Trust reported an increase in net assets attributable to unitholders of $41,000 for the six months ended 31 December 2024, up from $9,000 in the prior corresponding period.

• The Trust's principal activity is investing in securitised and warehouse trusts, with no significant changes in operations or state of affairs during the period.

Financial highlights

• Underlying NPATA rose 14% to $71.4m compared to 2H24; net revenue up 4% to $302.2m.

• NIM stable at 2.46%; cost to income ratio improved to 26.9% from 27.3% in 2H24.

• Distribution increased 31% to 17c; average financial assets grew 3% to $14.7b.

• Net profit after distribution expense was $41,000, up from $9,000 year-over-year.

• A distribution of 12 cents per unit was paid on 13 December 2024, consistent with the prior year.

Outlook and guidance

• Portfolio growth supported by stable environment, with ongoing customer hardship support.

• NIM expected to remain stable with possible expansion; continued outperformance in NIM, CTI, and ROA versus peers.

• Focus on automation and digital investment to improve operational efficiency.

• No forward-looking statements or guidance were provided due to potential prejudice to the Trust.