Resimac Group (ASX:RMC) executives pointed to “strong momentum” in the first half of fiscal 2026, citing higher earnings, improved efficiency, and better credit outcomes for the six months ended December 31, 2025. Chief Executive Officer Pete Lirantzis said the group delivered “solid earning growth,” continued to build its core lending portfolio, and maintained a disciplined approach to capital, risk, and cost management.
Profitability lifted on margin, volumes, and lower impairments
Management reported normalized operating profit of AUD 51.7 million, up 44% from AUD 39.9 million in the prior corresponding period. Normalized net profit after tax (excluding fair value derivative movements) rose to AUD 29.6 million, nearly double the AUD 15.0 million reported in the first half of 2025, while statutory NPAT increased to AUD 28.5 million.
Total normalized operating income increased 35% year over year to AUD 103.5 million, driven by average loan book growth, higher fee income, and a 15-basis-point expansion in group net interest margin (NIM). Net interest income rose 24% to reflect both volume and margin, while non-interest income (fee and commission income) doubled to AUD 12.0 million. Spurway attributed the fee uplift to “strong loan settlement fee revenue” and additional servicing and discharge fees connected to the Westpac Auto portfolio acquired in February 2025.
Costs rose, but efficiency improved
Normalized operating expenses were AUD 51.8 million, up 27% from the prior corresponding period. Spurway said the increase was anticipated because the first half of 2026 included a full period of servicing and collections costs related to the Westpac Auto portfolio, which were not included in the prior period’s cost base.
Employment expenses rose 7% as the company added staff to support the Westpac Auto portfolio, strengthen credit underwriting, and support origination volumes, alongside broader salary and wage inflation. Despite the higher expense base, management emphasized that revenue growth exceeded expense growth, delivering “positive jaws” of 8% and improving the normalized cost-to-income ratio by 310 basis points to 50%.
Portfolio growth and lending activity
Lirantzis highlighted momentum in the home loans business, reporting that home loan settlements increased 12% to AUD 2.7 billion for the half, alongside a 5-basis-point improvement in home loan NIM. He said the outcome reflected a shift toward improving broker service levels rather than relying on “an ad hoc campaign,” which management said translated into a higher rate of repeat business from brokers.
Mortgage application volumes in the half were described as broadly consistent with the first half of 2025, which management noted had been boosted by a one-off campaign. Spurway later added that the company generated AUD 4.3 billion of applications again in first half 2026 and improved settlements to AUD 2.7 billion “without the pricing concession,” describing it as evidence of a “back-to-core strategy” focused on service quality, product design, and faster decision-making rather than pricing alone.
On the balance sheet, Resimac reported originated AUM of AUD 15.1 billion across home loans and asset finance, while total AUM of AUD 15.7 billion reflected the expected run-off of the Westpac portfolio acquired in February 2025. Home loans AUM increased by AUD 600 million to AUD 13.6 billion. In asset finance, originated AUM increased 25% to AUD 1.5 billion; however, Lirantzis said asset finance volumes were “relatively flat” as the company took a cautious approach to industries that had underperformed.
- Home loans: AUM rose 4% to AUD 13.6 billion; settlements increased 12% to AUD 2.7 billion.
- Asset finance: Originated AUM increased 25% to AUD 1.5 billion; the company said it is taking a more conservative stance in higher-risk sectors such as transport logistics.
Credit performance improved and provisions declined
A key driver of earnings improvement was a reduction in impairment expense. Credit impairment charges fell to AUD 9.7 million from AUD 14.8 million in the prior corresponding period, which Spurway said had reflected more challenging economic conditions, particularly in asset finance.
Management pointed to better repayment behavior following RBA rate reductions during 2025, along with investments in collections capabilities. Spurway said prime home loan arrears greater than 90 days declined to 36 basis points at December 2025 from 81 basis points a year earlier, and non-conforming arrears fell 61 basis points to 1.71%. He said prime arrears “outperform[ed] our ADI peer group.”
Total credit loss provisions decreased by AUD 1.9 million from the second half of 2025 to AUD 62.6 million, with the coverage ratio edging down 1 basis point to 40 basis points. The company reported an AUD 8.1 million reduction in collective provisions, partly offset by a AUD 6.2 million increase in specific provisions. In home loans, collective provisioning declined to AUD 28.6 million, which management linked to approximately AUD 100 million of late-stage arrears clearing during the period. Resimac also reiterated the home loan portfolio’s average dynamic loan-to-value ratio of 61.9%, with 90% of accounts at or below 80% LVR.
In asset finance, the coverage ratio increased by 22 basis points to 140 basis points, while collective provisions declined largely due to the run-off of the Westpac Auto portfolio. Specific provisions increased to AUD 5.3 million as the acquired portfolio seasoned and some exposures migrated into later-stage arrears and recovery.
Funding, capital returns, and outlook
Resimac described its funding position as strong and supported by a diversified securitization platform. During the half, it issued AUD 2.0 billion of RMBS and AUD 0.5 billion of ABS across three transactions, spanning prime, non-conforming, and auto equipment assets. The company said recent transactions were oversubscribed, with senior tranches on both prime RMBS and auto and equipment ABS pricing at 95 basis points.
On capital management, the board declared a fully franked interim dividend of AUD 0.04 per share, a 14% increase from the prior corresponding period, and a fully franked special dividend of AUD 0.09 per share, returning AUD 35.6 million of excess capital. Spurway said that over the past 12 months, including the declared dividends, the group will have returned AUD 161 million of value to shareholders, comprising AUD 112.7 million in dividends and AUD 48.3 million of franking credits. He also said the company fully repaid remaining corporate debt during the half, reducing future interest expense and simplifying the capital structure, and reported normalized ROE of 15.5% compared with 7.2% a year earlier.
Looking ahead, Spurway said the company expects normalized operating profit in the second half of 2026 to be approximately AUD 6 million lower than in the first half, primarily due to the ongoing run-off of the Westpac Auto portfolio. He said AUM for that portfolio is anticipated to be approximately AUD 300 million to AUD 400 million by June 2026. Management also flagged potential headwinds from volatility in the spread between BBSW and the RBA base rate.
In closing remarks, Lirantzis outlined a five-point strategy focused on strengthening the home loans portfolio, deploying AI and agentic technology as part of an “intelligent lending operating model,” deepening broker and customer relationships, refining asset finance products to improve risk-adjusted returns, and building a high-performance culture. No analyst questions were taken during the call.
About Resimac Group (ASX:RMC)
Resimac Group Limited, a non-bank financial institution, provides residential mortgage and asset finance lending solutions in Australia and New Zealand. The company operates in two segments, Australian Lending Business and New Zealand Lending Business. It offers prime and specialist lending products; SME/commercial finance products; and home and car loans. The company also provides mortgage originator, trustee, lender, and mortgage manager and broker services; consumer and commercial lending; and LMI captive insurer and record lending services.
