Liberty Financial Group (LFG) H2 2025 earnings summary

Executive summary

• Returned to profit growth in FY25 and 2H25, supported by NIM expansion and lower impairment expense as credit risk moderated.

• Maintained portfolio stability through disciplined execution and effective cost management, with a stable cost to income ratio.

• Achieved investment grade balance sheet with 12% cash ROE and strong broker/customer net promoter scores.

Financial highlights

• Underlying NPATA rose 10% to $145m (from $132m); net revenue up 4% to $604m (from $583m) year-over-year.

• NIM at 2.49% (down 2bps); cost to income ratio improved to 27.1% (down 90bps); BDD at 19bps (down 6bps).

• Distribution and dividend totaled 52c (up 108%), including a special dividend.

• Average financial assets increased 4% to $14.7b; new assets originated fell 10% to $5.1b.

• Impaired loans increased 10% to $341m; average FTE staff decreased 4% to 524.

Outlook and guidance

• Environment expected to support origination and portfolio growth, with delinquency to reduce as interest rates normalize.

• NIM expansion anticipated to continue, with ongoing investment in digital experiences and automation to maintain operational efficiency.