Full Year 2025 Pepper Money Ltd Earnings Call Transcript
Key Points
- Pepper Money Ltd (ASX:PPM) achieved record originations of $10.3 billion in 2025, marking a 47% year-on-year growth.
- The company reported a 14% increase in total assets under management (AUM), closing the year at $21.8 billion.
- Net interest margin improved to 2.05% from 1.97% in 2024, driven by strong growth in asset finance.
- The cost to income ratio improved by 4% to 50.5%, reflecting effective cost management and operational efficiencies.
- Pepper Money Ltd (ASX:PPM) declared fully franked dividends totaling $26.07 per share, a 123% increase over 2024, returning $118.6 million to shareholders.
- Loan loss expense increased by 31% to $90.6 million, driven by portfolio growth and model recalibration.
- Mortgage net interest margin decreased by 12 basis points due to a shift towards prime originations.
- The company faced headwinds from volatility in swap rates, impacting margins despite pre-hedging strategies.
- Asset finance loan loss expense increased by $15.3 million due to lower provision releases from whole loan sales.
- The increase in loan loss provisions resulted in total provisions rising by 11% to $138.6 million.
Thank you for standing by and welcome to the Pepper Money Limited 2025 full year results briefing. (Operator Instructions). I would now like to turn, like to hand the conference over to Mr. Mario Rehayem and Chief Executive Officer. Please go ahead.
Good morning everyone and welcome to Pepper Money Limited's 2025 full year results presentation. My name is Gordon Livingstone, investor relations at Pepper Money.
I would like to begin by acknowledging the traditional custodians of the land on which we meet today, the Gadigal people of the Eora nation. We pay our respects to each of their elders, past and present. Today, Pepper Money's CEO Mario Rehayem will provide a business update, after which Pepper Money's CFO Therese McGrath will take us through the financial performance. After some closing remarks by Mario, there will be an opportunity to ask questions which can be either via phone or submitted via the portal. I will now pass over to Pepper Money's CEO Mario Rehayem.
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