Non-bank lender Resimac sees opportunities ahead despite profit slide

The non-bank lender suffered a bruising first quarter that contributed to a near-50 per cent fall in profit for the year.

Non-bank lender Resimac’s profit fell 47 per cent through fiscal 2024.

Resimac has posted a near-50 per cent slide in net profit as it was hit by lower assets under management and squeezed margins.

For the 12 months through to June 30, the non-bank lender posted a net profit of $34.8m, down from $66.5m the year prior.

Normalised net profit, which strips out one-off items and excludes the impact of derivatives, dropped to $43.1m, down from $73.7m in 2023.

Home loan assets under management fell to $12.9bn, down from $13.1bn the year prior, after a bruising first quarter due to heightened competition among lenders. But the home loan portfolio saw eight consecutive months of asset growth from November to June, helping to offset the decline suffered earlier in the year.

Net interest margin – a key measure of profitability – fell 12 basis points to 1.56 per cent.

With the challenging year in the rearview mirror, the lender sees opportunities in the prime home loan market in the coming year.

“Resimac has progressed on its strategic objectives in an economically challenging environment. The stabilisation of the home loans portfolio and the significant growth of the asset finance segment suggest improved performance in fiscal 2025,” interim chief executive Susan Hansen said.

“Together with the cessation of the RBA’s Term Funding Facility and major banks’ reducing generous incentives, we have been able to capitalise on opportunities with targeted product offerings, leading to a sustained increase in broker applications and home loan settlements,” she added.

Resimac boosted its active broker numbers through the year, seeing a 28 per cent jump compared to the year prior, which Ms Hansen said reflected the lender’s commitment to improving broker partnerships.

Along with the recovery in assets under management in the second half, Resimac also saw improved pricing on Residential Mortgage-Backed Securities (RMBS) deals, Ms Hansen said.

The board declared a fully franked final dividend of 3.5c per share, bringing the full-year payout to 7c per share.

Resimac shares closed Thursday’s trade up 2.7 per cent at 94c.

Originally published as Non-bank lender Resimac sees opportunities ahead despite profit slide