Rising Impairments Challenge Resimac Despite Strong FY25 Growth

Strong Organic Growth and Strategic Acquisition

Resimac Group Ltd reported a solid FY25 financial year, showcasing a 14% increase in home loan settlements, reaching $4.9 billion, alongside a 27% surge in asset finance assets under management (AUM) to $2.5 billion. This growth was further amplified by the acquisition of Westpac's $1.5 billion auto portfolio, which brought approximately 100,000 new customers and contributed $4.5 million to operating profit.

The acquisition not only diversified Resimac's asset finance portfolio but also positioned the company to capitalize on expanding market opportunities in consumer auto and novated leases.

Financial Performance and Dividend Policy

Normalised operating profit improved by 13% compared to FY24, reaching $78.6 million, with the second half of FY25 (2H25) showing a 19% increase over the first half. Return on equity (ROE) notably rose to 12.5% in 2H25 from 7.2% in 1H25, signaling enhanced capital efficiency.

Despite higher impairment expenses, which rose to $22.6 million due to portfolio growth and acquisition impacts, Resimac maintained a stable statutory net profit after tax (NPAT) of $34.6 million. The company declared a fully franked dividend of 19.0 cents per share, including a 12.0 cent special dividend, underscoring its commitment to returning capital to shareholders.

Funding Strength and Operational Investments

Resimac's funding strategy remains robust, with aggregate bond issuance exceeding $50 billion in FY25. The diversified funding model includes strong relationships with both domestic and international banking partners, supporting the company’s strategic AUM growth ambitions.

Operationally, the company invested in technology, compliance, and customer experience enhancements, particularly focusing on digital platforms and broker networks. These investments contributed to a slight increase in the cost-to-income ratio to 53.6%, reflecting strategic spending to underpin future growth.

ESG Commitments and Community Engagement

Resimac continues to integrate Environmental, Social, and Governance (ESG) principles into its business operations. The company is preparing for mandatory climate-related disclosures starting FY26 and has expanded governance committee responsibilities to include climate impact oversight.

Community initiatives remain a priority, with ongoing support for programs such as Sanctuary Housing, The Station, and Food Ladder, aligning with Resimac’s focus on health, education, and climate action. The company’s partnership with Carbon Positive Australia has resulted in the planting of over 46,000 trees, offsetting nearly five million kilograms of carbon.

Looking Ahead, FY26 Priorities

For FY26, Resimac plans targeted investments in its home loan business to sharpen market positioning and enhance customer and broker experiences. Talent development and retention are also key focuses, alongside maintaining rigorous security, compliance, and governance standards.

CEO Pete Lirantzis is leading a comprehensive review of the Group’s strategy to ensure alignment with long-term growth opportunities amid evolving market conditions.