Resimac Group (RMC) H2 2025 earnings summary

Executive summary

• Normalised operating profit before impairment and tax rose 13% to $78.6 million for FY25, with 2H25 up 19% sequentially and 43% over 2H24.

• Return on equity increased to 12.5% in 2H25 from 7.2% in 1H25.

• Successfully acquired and integrated the $1.5 billion Westpac Consumer Auto portfolio, adding nearly 100,000 customers and diversifying the asset base.

• Leadership transition completed with a new CEO and strategic focus on operational efficiency, technology, and customer experience.

• Dividends totaled 19.0c per share ($75.4m), including a 12.0c special dividend, and 4.7 million shares were repurchased.

Financial highlights

• Normalised NPAT (excluding derivative fair value movements) was $39.7 million, down from $43.1 million in FY24 due to higher impairment expenses.

• Statutory NPAT was $34.6 million, nearly flat year-over-year.

• Cost to income ratio (normalised) increased by 0.5 percentage points to 53.6% due to acquisition and integration costs.

• AUM grew to $15.9 billion, up 14% year-over-year, driven by both home loans and asset finance.

• Origination volumes reached $5.8 billion, up 14% year-over-year.

Outlook and guidance

• FY26 priorities include operational efficiency, technology investment (AI, automation), and a back-to-core focus on home loans.

• Expect gradual increase in asset finance margins as the acquired auto portfolio amortizes.

• Anticipate further cost base reduction as the Westpac portfolio runs off over the next two years.

• Market expects further RBA rate cuts in 2026, providing tailwinds for funding costs.

• Strategic review and investment in talent, service, security, compliance, and governance are key FY26 themes.