Humm Group (HUM) H1 2025 earnings summary

Executive summary

• Cash profit after tax rose 119% year-over-year to $29.8m, with statutory profit up 555% to $27.3m and EPS up 124% to 11.0c per share.

• Return on cash equity improved 122% to 10.9% year-over-year.

• Fully franked interim dividend of 1.25c per share declared, up 67% year-over-year, representing a 6.0% annualised return.

• Assets under management grew 14% year-over-year to $5.3b, with a 19% two-year CAGR and strong credit quality maintained.

• Strong cost management delivered $15.6m in annual cost savings and improved cost-to-income ratio to 52.4%.

Financial highlights

• Net interest income increased 6% year-over-year to $130.6m; net operating income up 6% to $162.3m.

• Credit impairment charge fell 30% year-over-year to $33.8m; net loss to average net receivables (ANR) at a record low of 1.8%.

• Operating expenses reduced by 13% year-over-year to $85.1m, with cost-to-income ratio improving from 64% to 52.4%.

• Gross cost savings of $36.6m since program inception, with $4.8m delivered in the current period.

• Annualised cash EPS rose 124% to 11.0c.

Outlook and guidance

• Focus on profitable growth, operational efficiency, and technology transformation, with continued investment in credit quality and customer experience.

• CapEx expected to reach $20m for the full year, in line with previous guidance.

• Quarterly market updates to resume, with a Q3 trading update planned for April–May 2025.

• Launch of a hybrid loan product in Australia expected to expand offerings and improve profitability.

• LTIP expenses to remain elevated until June 2026, impacting operating expenses.