Solvar (SVR) H2 2026 earnings summary

Executive summary

• FY 2026 marked a reset year, achieving profit guidance with normalized NPAT of $36.1 million and normalized EPS up 14.7%, driven by improved earnings quality and diversification into commercial lending.

• Australian business returned to growth, with the loan book closing at $920.3 million, and commercial lending loan book grew 88.2% year-over-year to $109.8 million.

• Strategic reduction and completed exit from New Zealand, including a successful sale of the post write-off loan book, reducing complexity and supporting capital returns.

• Regulatory matters with ASIC concluded, supporting operational stability and strengthened compliance frameworks.

• Surplus capital from New Zealand run-down enabled share buybacks and special dividends.

Financial highlights

• Normalized NPAT reached $36.1 million, up 7.5% year-over-year; statutory NPAT was $29.5 million, down 6.2%.

• Normalized EPS increased 14.7% to 19.0 cents per share; statutory EPS up 0.1% to 15.5 cents.

• Group loan book reached $953.4 million, up 10.5% in Australia; group originations in Australia rose 21.0% to $470.7 million.

• Group interest income was $193.4 million; Australian income flat, New Zealand declining.

• Fully franked dividends totaled 19.5 cents per share, including a 7.5 cent special dividend.

Outlook and guidance

• Double-digit loan book and interest income growth expected in FY27, with the loan book on track to exceed $1 billion.

• Continued investment in technology, automation, and AI to drive origination efficiency and productivity.

• Focus on disciplined capital allocation, margin stability, and long-term shareholder value creation.

• Special dividends likely to continue in line with the rundown of the New Zealand loan book.