Full Year 2025 Latitude Group Holdings Ltd Earnings Call Transcript
Key Points
- Latitude Group Holdings Ltd (ASX:LFS) reported a significant turnaround in performance, with a 59% year-on-year increase in cash profit before tax, reaching $155 million.
- The company opened 265,000 new customer accounts in 2024, a 22% increase year-on-year, supporting its product cross-sale strategy.
- Interest-bearing receivables grew by 11% year-over-year to approximately $5 billion, the highest level since 2019, with net interest margins up 75 basis points to 10.5%.
- Latitude Group Holdings Ltd (ASX:LFS) signed several new marquee partnerships in 2024, including Amazon and David Jones, enhancing its retail partner network.
- The company declared an unfranked dividend of $0.03 per share, equivalent to a 47% payout of after-tax profits, reflecting strong financial performance.
- Despite the positive financial results, the company's 90-day past due metric increased marginally by 10 basis points year-on-year to 1.35%, indicating some credit risk.
- Operating expenses increased by 4% in 2024, driven by inflationary pressures and investment in growth initiatives.
- The company's tangible equity ratio closed at 7.1%, which, while above the target range, may indicate limited room for further leveraging.
- Latitude Group Holdings Ltd (ASX:LFS) faces potential challenges from increased competition as interest rates are expected to ease, which could pressure margins.
- The company anticipates a slight uptick in net charge-offs in the first half of 2025 due to seasonality and normalization of credit losses.
Thank you for standing by and welcome to the Latitude Group Holdings Limited FY24 results briefing. (Operator Instructions)
I would now like to hand the conference over to Mr. Mitchell Hawley, Head of Investor Relations. Please go ahead.
Thanks, Ashley, and good morning, and welcome to Latitude's results briefing for the year ending December 31, 2024. I'm Mitchell Hawley, Head of IR, and I'm joined by our MD and CEO, Bob Belan; and Interim CFO, Stefano Tognon.
In the spirit of reconciliation, Latitude acknowledges the traditional custodians of country throughout Australia and their connections to land, sea, and community. We pay our respects to the elders past and present and extend that respect to all Aboriginal and Torres Strait Islander people.
I'll now hand over to Bob to begin the presentation.
Thanks. Good morning,
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