Humm Group Ltd. reported a resilient underlying net profit after tax of $44.2 million for the fiscal year ended June 30, 2026, as irregular costs of $19.1 million before tax weighed on statutory earnings of $15.7 million.
The group’s net operating income declined 1.0% to $327.1 million, while net interest income fell 2.3% to $258.3 million. The net interest margin improved by 10 basis points to 5.5%, though commercial net interest margins compressed by 5 basis points to 3.4%. The underlying cost-to-income ratio stood at 51.9%, while the reported ratio reached 57.7%, reflecting the impact of one-off expenses.
Irregular items totaling $19.1 million before tax included $9.9 million in legal and regulatory costs related to Forum Finance, $2.6 million in EGM and Takeovers Panel proceedings, $2.5 million tied to two non-binding indicative M&A offers, $1.4 million for ASIC inquiries, $1.1 million in remediation costs, and $3.6 million in business restructuring expenses. Non-cash items after tax amounted to $15.1 million.
The commercial segment’s net profit after tax fell 24.9% to $34.0 million, with operating expenses rising 15.9% to $35.7 million. In contrast, the consumer segment’s net profit after tax increased 25.8% to $31.2 million, driven by contributions from Cards NZ ($15.4 million), Cards AU ($12.5 million), and humm Ireland ($14.3 million). International operations saw net profit after tax improve from $0.4 million in FY25 to $8.1 million, with volumes up 27.2% to $429.7 million and closing receivables rising 30.4% to $301.0 million.
Credit quality metrics showed a 20-basis-point increase in group net credit losses to 2.0% of average net receivables. The commercial segment’s net credit losses rose 30 basis points to 1.5%, while consumer net credit losses increased 10 basis points to 2.9%. Balance sheet provision coverage stood at 2.7%, a 70-basis-point buffer above actual net credit losses.
Humm Group maintained a fully franked final dividend of 2.00 cents per share, representing a 4.5% annualized shareholder return. The board reaffirmed a payout ratio target of 30% to 40%. Shares rose 3.66% to $0.425, narrowing the 52-week range to $0.39–$0.775.
CEO Angelo Demasi described the period as marked by "an extraordinary level of corporate activity" amid macroeconomic and geopolitical uncertainty. He noted that the share price, trading below net tangible assets, "would be impossible to argue reflects the company's future prospects."
