Half Year 2025 Latitude Group Holdings Ltd Earnings Call Transcript
Key Points
- Latitude Group Holdings Ltd (ASX:LFS) added 146,000 new customers in the first half of 2025, marking a 15% increase year on year.
- The company processed 28 million credit card transactions, generating $3.5 billion in purchase volume, up 13% year on year.
- Latitude's Money division originated a record $783 million in new personal and auto loans, with receivables growing by 12% year on year to $3.2 billion.
- Net interest income rose by 23% to $396 million, with a NIM yield of 11.7%, achieved through targeted pricing initiatives and improved funding costs.
- Cash profit before tax increased by 40% to $93.5 million, and cash NPAT grew 69% to $46.2 million, allowing for an increased dividend of $0.04 per share.
- Non-interest income declined by 50%, partly due to costs associated with loyalty programs for the David Jones Cards and the 28 Degrees Card.
- The competitive landscape in unsecured consumer lending has intensified, with competitors using pricing levers to drive volume growth.
- Delinquencies and credit losses, while in line with historical averages, have resulted in an increase in net charge-offs, averaging 3.5% over the last 12 months.
- Operating expenses rose by 3%, which, although in line with inflation, included significant investments in new products and capabilities.
- The company's buyback program for capital notes was halted, with only $3 million out of the $10 million executed, due to market conditions and blackout periods.
Thank you for standing by, and welcome to the Latitude Group Holdings Limited first-half '25 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, Elric. Good morning, and welcome to Latitude results briefing for the half year ending June 30, 2025. I'm Mitchell Hawley, Head of IR, and I'm joined here today by MD and CEO, Bob Bellan; and CFO, Guillaume Leger.
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 today.
I'll now hand over to Bob to begin the presentation.
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