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Highlights

  • Resimac aims to emerge as the non-bank lender of choice
  • In FY23, the company delivered statutory NPAT of AUD 66.5 million
  • AUM and home loan settlements during the period reduced, while asset finance settlement surged by 19%

Resimac Group Ltd (ASX: RMC) is a non-bank lender and a multi-channel distribution business in Australia, New Zealand and the Philippines. The company is engaged in originating, servicing and funding asset finance products and non-conforming residential mortgages. It operates in New Zealand, the Philippines and Australia.

The company registered an NPAT of AUD 73.7 million and a statutory NPAT of AUD 66.5 million in the financial year 2023 (FY23). The period saw a 600 bps increase in the cost to income ratio to 43.6% because of increased operating expenses in the first half of FY23.

During the reported period, total home loan AUM was reduced by 14%, while prime AUM fell by 23%, and specialist AUM remained unchanged. The home loan settlements in FY23 were AUD 3.7 billion, 41% lower than FY22, and asset finance settlements were AUD 482 million, 19% higher than FY22.

Top 10 shareholders of RMC

The top 10 shareholders of RMC have around 75.10% shareholding in the firm, while the top four have 71.27% shareholding in the firm. ICM Limited and Motrose Proprietary Ltd. have the maximum stake in the firm, with a shareholding of ~63.39% and ~3.61%, respectively.

Recent business update

Through an ASX update dated 28 August 2023, the company informed that it had priced an AUD 750 million dual-currency prime residual mortgage-backed securities transaction. The benchmark AUD A2 tranche was priced at 125bps over 1-month BBSW.

Outlook

In FY24, the company targets settlements of AUD 1 billion, backed by increased broker penetration and digital origination platform. The company intends to focus on digitisation by optimizing its origination and new banking platforms while investing in new technologies. This development is expected to support AUM growth, deliver operational efficiency, and improve customer experience.

Share performance of RMC 

RMC shares closed 2.08% down at AUD 0.94 apiece on Monday (9 October 2023). With this, RMC’s share price dropped by 3.09% in the past 12 months and has increased by 5.62% in the last six months.

The 52-week range of RMC is AUD 0.845 – 1.375 apiece. Worth mentioning here is that the 52-week high is almost 31.64% higher than today’s closing price.

 

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

 

Note 2: The reference date for all price data, currency, is 09 October 2023. The reference data in this report has been partly sourced from REFINITIV.