Insignia Financial (IFL) investor relations material

Executive summary

• UNPAT increased 6% to AUD 132 million for 1H 2026, driven by higher average FUMA, cost reductions, and completion of NAB separation.

• Statutory NPAT swung to AUD 78.8 million from a loss of AUD 16.8 million in 1H25, reflecting improved operations and absence of new remediation provisions.

• EBITDA rose 6.5% to AUD 238.2 million, with base OpEx down 6.4% to AUD 449.2 million due to ongoing cost-out initiatives.

• Entered Scheme Implementation Deed with CC Capital at AUD 4.80 per share, a 57% premium to prior close, with shareholder vote expected in 1H26.

• Significant progress made on 2030 strategy, including brand revitalization, AI investments, and operational efficiency.

Financial highlights

• Net revenue rose 1.8% to AUD 718.2 million, supported by a 6% increase in average FUMA to AUD 339 billion.

• Cost-to-income ratio improved to 63% from 68%, reflecting ongoing cost reduction efforts.

• Free cash flow turned positive at AUD 52 million, compared to -AUD 239 million in 1H 2025.

• Group net revenue margin fell from 43.8 to 42 basis points due to pricing and product mix.

• Closing FUMA reached AUD 341.97 billion, up from AUD 326.77 billion a year ago.

Outlook and guidance

• Master Trust margin guidance raised to 51.5-52.5 bps; Wrap margin guidance lowered to 27-28 bps.

• FY26 guidance maintained: group net revenue margin 40.5–41.5 bps, opex AUD 880–890 million, reinvestment opex ~AUD 80 million.

• Acceleration in reinvestment spend expected in 2H 2026; cost guidance unchanged.

• FY 2026 priorities include Master Trust migration, sustaining MLC brand momentum, product innovation, and AI scaling.

• No interim dividend declared due to the pending scheme; special dividend possible if scheme not effective by July 2026.