Resimac Group (RMC) H1 2025 earnings summary

Executive summary

• Despite macroeconomic headwinds in Australia, including slow GDP growth and rising insolvencies, the business achieved resilient growth in home loans and asset finance, with AUM reaching $14.2 billion at 31 December 2024.

• Strategic focus on digitalization, automation, and innovation led to efficiency gains and improved customer and broker experiences.

• Leadership transition is underway, with Pete Lirantzis set to become CEO following the Westpac auto bankbook migration.

• Statutory NPAT was $13.5 million, down from $14.5 million in 2H24, reflecting higher impairment expenses.

• Interim fully-franked dividend of 3.5 cents per share declared, matching the prior interim dividend.

Financial highlights

• Normalized NPAT for H1 FY2025 was $15 million, down from $17.1 million in 2H24, mainly due to higher impairment expenses.

• Operating profit before impairments and tax rose over 20% to $35.9 million.

• Cost-to-income ratio improved to 53.1% from 57.9% in 2H24.

• Loan impairment expense increased to $14.8 million from $5.5 million in 2H24, driven by higher arrears and write-offs.

• Assets under management (AUM) reached $14.2 billion, up 2% since June 2024 and 6% year-over-year.

Outlook and guidance

• Acquisition of the Westpac auto portfolio expected to add $1.4–$1.6 billion in AUM and contribute $6–12 million to operating profit in FY2025–26.

• Anticipated interest rate cuts in 2025 are expected to provide tailwinds for funding costs and net interest margin.

• Focus remains on sustainable growth, cost control, and further digital transformation.