humm Group’s FY25: $39.6M Profit, $5.5B Assets, and Dividend Declared

Financial Performance Highlights

humm Group Limited (ASX, HUM) delivered a standout financial performance for the year ended 30 June 2025, with revenue rising 8% to $666.6 million and net profit after tax attributable to shareholders soaring 458% to $39.6 million. This dramatic profit uplift was supported by a 56.5% increase in cash profit after tax to $52.9 million and a 400 basis point improvement in return on cash equity to 10.0%, reflecting enhanced capital efficiency following the full repayment of $53.6 million in subordinated perpetual notes.

Assets under management expanded by 9.6% to $5.5 billion, underpinned by growth in commercial lending and point-of-sale payment plans (PosPP). The company’s net interest income grew 5.2% to $264.5 million, while net interest margin remained stable at 5.4%, despite a slight compression due to strategic shifts in asset mix.

Operational and Segment Insights

humm Group’s diversified portfolio showed resilience across its key segments. The Commercial business grew assets under management by 12% to $3.3 billion, despite a challenging SME lending environment, supported by increased market share and a Forward Flow program that released capital and reduced credit losses. The PosPP segment, including operations in Australia, Canada, Ireland, and the UK, saw a 20% increase in net operating income and an 11.1% rise in loans and advances, driven by strong growth in health and solar verticals.

New Zealand Cards delivered steady volume growth of 4.9%, with a slight dip in cash profit due to increased interest expenses and credit losses remaining within historical lows. Conversely, Australia Cards experienced a 39.7% decline in cash profit, impacted by elevated legal costs from an ASIC inquiry and strategic platform rebuild plans.

Cost Management and Capital Strategy

The Group’s disciplined cost management initiatives yielded $10.3 million in inflation-adjusted savings, reducing operating expenses by 5.7% to $170.9 million. These savings were achieved through lower full-time equivalent expenses and improved procurement outcomes, partially offset by transformation project costs and regulatory inquiry expenses.

humm Group’s funding platform remains robust, with $5.9 billion in wholesale debt facilities and $1.2 billion of undrawn capacity. The company’s capital management strategy focused on cost-effective funding and deleveraging, highlighted by the repayment of perpetual notes, which contributed to improved return metrics.

Leadership and Governance Developments

In May 2025, Angelo Demasi was appointed as CEO, bringing extensive experience in digital transformation and financial services leadership. The Board approved updated remuneration arrangements for Mr. Demasi, including a fixed remuneration of $750,000 and a performance-linked incentive structure aligned with long-term shareholder value creation.

The Board maintained strong governance practices, with a focus on risk management, regulatory compliance, and ESG initiatives. humm Group continues to lead in climate bond issuances, having issued over $1.1 billion in certified Climate Bonds to support solar energy financing.

Outlook and Strategic Focus

While the Group’s new regulated hybrid Point-of-Sale product launch experienced softer than expected uptake, management remains focused on refining credit approval processes and technology platforms to drive future growth. The company’s extensive merchant base and ongoing transformation efforts position it well to capitalize on emerging market opportunities.

Ongoing litigation related to Forum Finance and regulatory inquiries represent contingent risks, but provisions have been prudently managed. humm Group’s commitment to sustainable growth, customer-centric innovation, and strong governance underpins its positive trajectory.