Why Did Resimac’s Net Tangible Assets Drop Despite Stable Profits?
Resimac Group Ltd reported a stable FY25 net profit after tax of $34.6 million and declared a fully franked final dividend of 3.5 cents per share, maintaining its steady financial footing amid modest revenue growth.
- FY25 revenue steady at $1.078 billion, flat versus FY24
- Net profit after tax marginally down 0.2% to $34.6 million
- Normalised NPAT improved to $39.7 million excluding one-offs
- Final fully franked dividend declared at 3.5 cents per share
- Net tangible assets per share declined from $0.80 to $0.60
Stable Revenue and Profit Performance
Resimac Group Ltd has released its preliminary final report for the financial year ended 30 June 2025, revealing a largely steady financial performance. The company recorded revenue of $1.078 billion, essentially flat compared to the previous year’s $1.003 billion. Net profit after tax (NPAT) was $34.6 million, a slight dip of 0.2% from FY24’s $34.8 million, underscoring a resilient bottom line amid a challenging lending environment.
Normalised Earnings and Dividend Policy
Adjusting for non-recurring costs and one-off gains, Resimac’s normalised NPAT rose to $39.7 million, indicating underlying operational strength. The board declared a fully franked final dividend of 3.5 cents per share, payable on 19 September 2025, consistent with the interim dividend paid earlier in the year. The company’s Dividend Reinvestment Plan remains suspended, reflecting a cautious capital management approach.
Balance Sheet and Segment Insights
Net tangible assets per share declined to $0.60 from $0.80 in FY24, a notable contraction that may warrant investor attention. Segment revenue growth was mixed, home loan lending revenue increased modestly, while New Zealand lending and asset finance segments showed variable results. Total loans and advances grew to nearly $16 billion, supported by strong cash flow management and disciplined expense control.
Operational and Market Context
The company’s financial statements, audited by Deloitte Touche Tohmatsu, reflect ongoing market pressures including derivative fair value losses and loan impairment expenses. Despite these headwinds, Resimac maintained profitability and declared dividends, signaling confidence in its business model. Chairman Wayne Spanner’s commentary, accompanying the release, highlights the group’s focus on sustainable growth and risk management.
Looking Ahead
With no changes in control or associates during the year and no material subsequent events reported beyond the dividend declaration, Resimac appears positioned for steady performance. However, the decline in net tangible assets per share and the impact of derivative losses suggest areas for close monitoring as the company navigates evolving financial markets.
Bottom Line?
Resimac’s FY25 results reflect steady earnings and dividends but signal caution on asset quality and capital metrics ahead.
Questions in the middle?
- What factors contributed most to the decline in net tangible assets per share?
- How sustainable is the current dividend policy given the flat revenue and derivative losses?
- What strategic initiatives is Resimac pursuing to drive growth in its New Zealand and asset finance segments?
