Resimac Group Ltd delivered a 42% jump in statutory profit for FY26 despite flat revenue, driven by strong home loan growth and improved margins, while raising its final dividend to 6 cents per share.
- 42% increase in statutory profit after tax to $49.2 million
- Flat revenue at $1.07 billion with 10% growth in home loan assets
- Final dividend lifted 71% to 6 cents, total ordinary dividends up 43%
- Home loan settlements rose 20% to $5.9 billion
- Asset finance portfolio strategically refocused, settlements down 11%
Profit Surge Amid Flat Revenue
Resimac Group Ltd (ASX:RMC) reported a sharp 42% rise in statutory net profit after tax (NPAT) to $49.2 million for the year ended 30 June 2026, while revenue remained steady at just over $1.07 billion. This profit growth was underpinned by a 26% increase in normalised NPAT to $49.9 million, reflecting improved operating performance and reduced earnings volatility from one-off items.
The company’s return on equity climbed to 13.6%, up from 10.1% in FY25, signalling enhanced capital efficiency amid disciplined expense management and strategic investments.
Home Loans Drive Portfolio Expansion
Resimac’s core home loan business gained significant momentum, with settlements soaring 20% to $5.9 billion and assets under management (AUM) expanding 10% to $14.7 billion. This growth was fueled by strong application volumes, deep broker relationships, and ongoing initiatives to enhance customer and broker experiences.
The home loan portfolio maintains a conservative risk profile, with a weighted average dynamic loan-to-value ratio (LVR) of 62.2% and approximately 60% of loans within the 0-60% LVR band. The portfolio remains well diversified across prime and non-conforming segments, supporting resilience against economic fluctuations.
Asset Finance Portfolio Refocused on Profitability
In contrast, Resimac’s asset finance segment saw settlements decline 11% to $0.8 billion, reflecting a deliberate strategic shift away from volume growth towards higher risk-adjusted returns. The asset finance AUM fell 28% to $1.8 billion, primarily due to the expected runoff of the Westpac Auto portfolio acquired in FY25.
Excluding the Westpac portfolio runoff, Resimac-originated asset finance AUM grew 7%, driven by a focus on higher-return products such as commercial auto and secured business lending. Margins in asset finance improved by 13 basis points, supporting stronger profitability despite the lower volume.
Funding Strength and Operating Leverage
Resimac’s diversified funding platform remains a key competitive advantage. The Group issued $5.5 billion in Residential Mortgage-Backed Securities (RMBS) and Asset-Backed Securities (ABS) during FY26, a 28% increase on the prior year, with aggregate bond issuance now approaching $60 billion since inception.
Improved funding margins and the full-year contribution of the Westpac Auto portfolio helped lift the Group’s net interest margin by 5 basis points to 159 basis points, even as competitive pressures persisted in the home loan market.
Operating expenses rose 16% to $104.9 million, reflecting investments in people, technology, and strategic initiatives. However, income growth outpaced expense growth, resulting in improved operating leverage and a reduced cost-to-income ratio of 53.0%.
Credit Quality and Provisioning Remain Prudent
Loan impairment expenses fell 5% to $21.4 million despite portfolio growth, benefiting from disciplined collections management and improved recovery outcomes. Provisioning levels remain responsive to portfolio performance and macroeconomic conditions, with home loan collective provision coverage slightly reduced to 20 basis points.
Arrears and credit metrics continue to compare favourably against industry peers, supporting management’s view that provisioning remains appropriate.
Dividend Increase and Capital Position
The Board declared a fully franked final dividend of 6.0 cents per share, up 71% from 3.5 cents in FY25, bringing total ordinary dividends for FY26 to 10.0 cents per share, a 43% increase. This was complemented by a fully franked special dividend of 9.0 cents paid in March 2026, maintaining the total dividend payout at 19.0 cents per share.
Resimac retains approximately $103 million in franking credits, providing significant flexibility for future dividend payments. The Group’s net assets stood at $370 million, reflecting a solid capital base to support ongoing growth.
Regulatory Proceedings and Risk Management
The Group disclosed ongoing civil penalty proceedings initiated by ASIC in May 2025 concerning alleged breaches related to hardship notices under the National Consumer Credit Protection Act. No financial impact has been quantified, and the matter remains before the court.
Resimac continues to operate under a comprehensive risk management framework, addressing credit, funding, regulatory, operational, and climate-related risks. The Group commenced mandatory climate-related financial reporting in FY26 and published its inaugural Sustainability Report aligned with Australian standards.
Executive Leadership and Remuneration
New CEO Pete Lirantzis, appointed in April 2025, oversaw operational and strategic execution, including integration of the Westpac Auto portfolio. The remuneration framework for key management personnel aligns pay with financial and non-financial KPIs, incorporating short- and long-term incentives linked to performance and strategic milestones.
Long-term incentive plans include share options and rights with vesting conditioned on employment tenure, share price performance, regulatory compliance, and innovation targets.
Looking Ahead to FY27
Resimac enters FY27 with a stronger earnings base, expanding home loan portfolio, and a disciplined capital framework. The Group aims to deepen customer insight, leverage AI and automation for intelligent lending, and maintain prudent credit and capital management. Maintaining sustainable growth in home loans and improving asset finance returns remain key priorities.
While the ASIC proceedings introduce some regulatory uncertainty, Resimac’s diversified funding, disciplined risk management, and strategic investments position it well to navigate evolving market conditions and deliver long-term shareholder value.
Bottom Line?
Resimac’s FY26 results reflect disciplined growth and improved returns, but ongoing ASIC proceedings and macroeconomic uncertainties warrant close attention.
Questions in the middle?
- How will ASIC’s civil penalty proceedings affect Resimac’s regulatory risk and potential financial liabilities?
- Can Resimac sustain its dividend growth amid competitive lending markets and evolving macroeconomic conditions?
- What impact will AI and technology investments have on Resimac’s operational efficiency and customer experience in FY27?