Resimac Group (RMC) H2 2024 earnings summary

Executive summary

• FY24 normalized NPAT was AUD 43.1 million, down 41–42% year-over-year, with statutory NPAT at AUD 34.8 million, reflecting NIM compression and lower average home loan AUM.

• Fully franked dividend of 7 cents per share for FY24, down from 8 cents in FY23, with a normalized payout ratio of 65%.

• Asset finance AUM grew to AUD 1.1 billion, up 76–83% year-over-year, while home loan AUM closed at AUD 12.9 billion, down 1.9–2%.

• Home loan settlements increased to AUD 4.3 billion, up 16% year-over-year; asset finance settlements rose to AUD 0.8 billion, up 60%.

• Broker numbers increased by 28% compared to FY23, supporting growth and diversification.

Financial highlights

• Net interest margin declined by 12 basis points to 1.56% for FY24, with group NIM compression due to higher funding costs.

• Cost-to-income ratio increased to 53.1% in FY24 from 43.6% in FY23, despite a 3.3% reduction in operating expenses.

• Loan impairment expenses rose significantly to AUD 11.6 million, reflecting asset finance portfolio growth and seasoning.

• Return on equity (normalized) declined to 10.4% from 18.6%.

• Dividend yield was 8.14%.

Outlook and guidance

• Home loan AUM expected to continue growing, supported by low discharges and increasing settlements.

• Asset finance growth to be pursued through new channels, products, and cautious expansion.

• Focus on digital transformation, operational efficiency, and broker experience to support scalable growth.

• Anticipation of lower funding costs and improved NIM in FY25 as market competition eases and RMBS pricing improves.

• Commenced FY25 with a strong balance sheet, stable funding, and enhanced technology platforms.