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Non-bank lender Resimac has released its financial results for the year ended 30 June 2024, revealing an increase of 76 per cent in its asset finance business, up from $0.5 billion to $1.1 billion on the previous corresponding period (FY23).
Assets under management (AUM) increased by 2 per cent to $14 billion, comprised of its asset financing and home loans, which the lender reported had decreased by $0.2 billion (down 1.9 per cent) to $12.9 billion on FY23.
Additionally, originations for the asset finance business recorded an increase in originations of 60 per cent to $0.8 billion.
According to interim CEO Susan Hansen, the growth in the asset finance division “underscores” the lender’s diversification strategy and remains a priority, while the acquisition of Sonder bolstered Resimac’s distribution and product capabilities.
Hansen said that Resimac has “progressed on its strategic objectives in an economically challenging environment”.
“The stabilisation of the home loans portfolio and the significant growth of the asset finance segment suggest improved performance in FY25,” Hansen said.
“Together with the cessation of the RBA’s Term Funding Facility and major banks’ reducing generous incentives, we have been able to capitalise on opportunities with targeted product offerings, leading to a sustained increase in broker applications and home loan settlements.”
Hansen further highlighted the recovery in AUM and improved pricing on RMBS deals and, despite a year-on-year drop in normalised NPAT due to “net interest margin pressures and lower average AUM balances”, Resimac was able to achieve 4 per cent AUM growth in the latter half of the year.
In terms of the lender’s strategic focus and outlook, Hansen said that the group will remain dedicated to “being Australia’s preferred non-bank lender” via broker and customer-centric growth strategies.
Resimac has reported that its active broker numbers have increased by 28 per cent compared to the prior financial year, which is reflective of its “commitment to improving broker partnerships”.
Hansen said: “Despite a challenging macroeconomic environment, the focus our people, together with technology have on customer support and service excellence continues to drive our growth.
“The Group remains committed to execute its digital transformation roadmap which includes key platform upgrades and automation enhancements.
“We have commenced FY25 with a strong balance sheet, a stable funding platform, improved technology, an increasing broker network, and a great team of capable and committed people.”
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