This article is from the Australian Property Journal archive
NON-bank lender Resimac has reported a weaker full year profit result due to challenging macroeconomic conditions and rising funding costs.
Resimac reported a normalised net profit after tax of $43.1 million for FY24, down 42%) on FY23 and a statutory NPAT of $34.8 million down 47% on FY23.
Although the group’s originations rose by 21% to $5.1 billion, its home loans book decreased by 1.9% or $0.2 billion to $12.9 billion. Asset Finance increased by $0.5 billion to $1.1 billion.
The board has declared a fully franked final dividend of 3.5 cents per ordinary share. The full year dividend is 7.0 cents per ordinary share, reflecting a payout ratio of 65% on a normalised basis.
Interim CEO Susan Hansen said Resimac has progressed on its strategic objectives in an economically challenging environment.
“Despite a year-on-year decrease in normalised NPAT due to net interest margin pressures and lower average AUM balances, the group was able to achieve 4% AUM growth in the second half of the year.
“The group remains dedicated to being Australia’s preferred non-bank lender through a broker and customer-centric growth strategy,” she added.
“The asset finance business underscores our diversification strategy and remains a priority. It has shown remarkable growth, with AUM increasing by 76% in FY24 and originations rising by 60% year-on-year to $0.8 billion. The acquisition of Sonder has strengthened our distribution and product capabilities,” she continued.
Meanwhile Hansen said the group has achieved positive outcomes in capital markets to reduce funding costs from new deals, but it will take time for the savings to reflect on its books.
“We’ve seen improved new issuance margins with senior Prime notes down 30 basis points and non-conforming notes down 46 basis points. Our cost discipline and investment in technology, reduced operating costs by 3.3%, despite an increase in our cost-to-income ratio to 53.1%. The group remains committed to executing its digital transformation roadmap which includes key platform upgrades and automation enhancements.
“We have commenced FY25 with a strong Balance Sheet, a stable funding platform, improved technology, an increasing broker network and a great team of capable and committed people,” Hansen concluded.
