Resimac Reports 110% Profit Surge, $533M Revenue, and $0.13 Dividend per Share

Strong Profit Growth Amid Market Easing

Resimac Group Ltd has delivered a robust financial performance for the half-year ended 31 December 2025, reporting a statutory net profit after tax (NPAT) of $28.45 million, more than doubling the $13.53 million recorded in the previous corresponding period. Revenue edged up 1% to $533 million, underpinned by a 26% increase in net interest income driven by improved broker relationships and strategic portfolio management.

Dividend Strategy Reflects Capital Discipline

The Board declared a fully franked interim dividend of 4.00 cents per share alongside a special dividend of 9.00 cents per share, signalling confidence in the Group’s capital position. The special dividend, paid from retained earnings, underscores Resimac’s commitment to returning surplus capital to shareholders while maintaining operational and regulatory capital buffers.

Portfolio Dynamics: Growth and Run-Off

The home loan portfolio experienced modest growth, reaching $13.7 billion, supported by easing monetary policy and improving borrower conditions. Conversely, the asset finance portfolio declined by 16% to $2.1 billion, reflecting the expected run-off of the Westpac auto loan portfolio acquired in 2025. The Group’s total assets under management stood at $15.8 billion at period end.

Navigating Regulatory and Economic Challenges

Resimac faces ongoing civil penalty proceedings initiated by ASIC concerning alleged breaches related to hardship notices under the National Consumer Credit Protection Act. While no provision has been made due to uncertainty, the case remains a key risk factor. The Group also continues to monitor the uncertain interest rate environment, with a recent rate increase in February 2026 prompting cautious credit management.

Preparing for Future Reporting and Sustainability

In line with new regulatory requirements, Resimac is preparing its inaugural climate-related disclosures for the full 2026 financial year, reflecting its status as a Group 1 entity under Australian sustainability reporting standards. The Group also maintains strong funding programs, issuing $3.2 billion in mortgage and asset-backed securities during the period to support growth and optimise funding costs.

No Goodwill Impairment Despite Market Pressures

Despite the Group’s market capitalisation trading below net asset value, management’s impairment assessment found no goodwill impairment. This reflects confidence in the underlying business units, particularly the home loan lending segment, which benefits from synergies post-merger and resilient portfolio quality.