Resimac Group (RMC) H1 2025 earnings summary

Executive summary

• Operating profit before impairment expense and tax rose 20% to $35.9 million compared to 2H24, driven by AUM growth and cost discipline.

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

• Asset under management (AUM) reached $14.2 billion, up 2% since June 2024 and 6% year-over-year, with home loans at $13.0 billion and asset finance at $1.2 billion.

• Origination volumes grew 5.6% to $2.8 billion; application volumes surged 39% to $5.0 billion.

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

Financial highlights

• Normalised NPAT for H1 FY2025 was $15.0 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.

• Interim fully-franked dividend of 3.5 cents per share declared, consistent with prior periods.

Outlook and guidance

• Acquisition of the Westpac auto portfolio expected to add $1.5 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.