Resimac Group FY24 Trading Update

Resimac Group Limited (ASX: $RMC) has released its unaudited FY24 trading update, reporting total settlements of $5.1bn, comprising of $4.3bn in Home Loan settlements and $0.8bn in Asset Finance settlements. The Assets Under Management (AUM) closed at $14.0bn, with Home Loans accounting for $12.9bn and Asset Finance $1.1bn. The company anticipates further AUM growth momentum in FY25.

Executive Commentary

The intense competition in FY23, driven by cash back offers and attractive refinance rates from major lenders, led to a 13% reduction in average Home Loans AUM for FY24. However, the competition has abated in 2H24, resulting in Resimac Group Home Loans experiencing growth for 8 consecutive months. The company expects this growth momentum to continue into FY25. Arrears and hardships remain low across all product segments, reflecting the underlying credit quality of the book supported by strong collections and recovery capability. Provisions for doubtful debts increased in FY24, with collective provision coverage for the Asset Finance book increasing to 84bps to align with loss expectations. The company anticipates unaudited normalised NPAT in the range of $42m - $44m for FY24, subject to finalization, with further details to be provided in the investor release and call on 29th August 2024.

Summary of FY24 Trading Update

Resimac Group Limited (ASX: $RMC) has reported a total settlements increase to $5.1bn for FY24, with AUM closing at $14.0bn. The company foresees further AUM growth momentum in FY25 despite the intense competition in FY23, which led to a reduction in average Home Loans AUM. The company's arrears and hardships remain relatively low across all product segments, reflecting the underlying credit quality of the book. Provisions for doubtful debts increased in FY24, with the company expecting unaudited normalised NPAT in the range of $42m - $44m for FY24. Resimac Group anticipates continued growth and is poised for further increase in FY25.