Resimac Group (RMC) H2 2025 earnings summary

Executive summary

• Delivered strong FY25 results with 13% growth in normalised operating profit to $78.6 million, and early signs of recovery in profit and AUM growth after a challenging post-COVID period.

• Successfully acquired and integrated the $1.5 billion Westpac Consumer Auto portfolio, adding nearly 100,000 customers and diversifying the asset base, contributing $4.5 million to operating profit.

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

• Dividends totaled $0.19 per share ($75.4 million), including a $0.12 special dividend, and 4.7 million shares were repurchased.

• Home Loan settlements grew 14% to $4.9 billion, Asset Finance settlements up 13%, and AUM for both segments increased.

Financial highlights

• Normalised net profit after tax (excluding derivative fair value movements) was $39.7 million, $3.4 million below FY24 due to higher impairment expenses.

• Normalised operating profit before impairments and tax rose 13% to $78.6 million year-over-year.

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

• Total dividend of $0.19 per share, including a $0.12 special dividend; total payout ratio (excluding special dividend) at 80%.

• Assets under management (AUM) grew to $15.9 billion, up $1.8 billion since December 2024.

Outlook and guidance

• FY26 priorities include operational efficiency, technology investment (AI, automation), and a back-to-core focus on home loans, with a CEO-led strategic review and investment in talent.

• 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.

• Technology, data, and AI will underpin future initiatives.