Pepper Money's Capital Management Strategy

Pepper Money Limited (ASX: $PPM) has announced its decision to undertake an on-market buy-back of up to 10% of the ordinary shares currently on issue as part of its capital management strategy. The Share Buy-Back is set to commence from 2 April 2024 for a period of up to 12 months. Additionally, the company has increased its dividend payout ratio to 30.0 - 60.0% of Pro-forma Net Profit After Tax from 30.0 - 40.0%.

Executive Commentary on Capital Management

Pepper Money's Chair, Mike Culhane, emphasized that the on-market share buy-back and the increased dividend payout ratio reflect the company's disciplined capital management and commitment to enhancing shareholder value. CEO Mario Rehayem highlighted the company's strategic approach to balancing growth and value management, aiming to optimize returns to shareholders and generate value and returns through capital deployment.

Summary of Pepper Money's Announcement

Pepper Money (ASX: $PPM) has announced an on-market share buy-back and an increase in the dividend payout ratio as part of its capital management strategy. The company aims to provide flexibility around the capital required to grow and fund the business while delivering strong returns to shareholders. The Share Buy-Back will be conducted over a 12-month period, and the timing and the number of shares purchased will depend on market conditions and other capital considerations. Pepper Money's ambitions include optimizing returns to shareholders and generating value through capital deployment.