Resimac Group (ASX:RMC) Announces 1H25 Trading Update
Financial Performance
Resimac Group reported a normalised net profit after tax of $15.0 million for the first half of 2025, a 12% decrease from $17.1 million in the previous period. The reduction was mainly due to increased collective provisioning in the asset finance business.
Asset Finance Portfolio
The asset finance portfolio experienced higher arrears and net write-offs of $6.5 million, up from $2.9 million. Consequently, the Group raised its provisioning coverage for Home Loans and Asset Finance by $8.2 million (18%) to $54.3 million.
Operating Profit
Operating profit before impairment expenses increased by 20% to $35.9 million, driven by growth in Assets Under Management, higher net interest and fee income, and disciplined cost control.
Future Outlook
Management expects not to meet NPAT consensus for FY25 but remains confident in achieving operating profit consensus and capitalising on positive settlements and AUM growth.
Executive Comments
Susan Hansen, Interim Chief Executive Officer, commented, “Despite the decrease in our first-half normalised net profit after tax, primarily attributed to increased provisioning within our asset finance business. We remain confident in the overall financial position and performance of our operations. The sustained growth in assets under management (AUM) and operating profit reflects the resilience of our business model and the ongoing diversification of our balance sheet. We are proactively addressing challenges within the asset finance portfolio by implementing strategies aimed at enhancing our collections and recoveries performance. The financial guidance in this release is unaudited and may be subject to change. The Group will provide a more detailed update on its financial performance at the release of its first half results on 25th February 2025.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.