Latitude Financial Services reported a 39% year-on-year increase in cash profit for the first half of 2026, reaching AUD 64.3 million, while statutory profit rose 37% to AUD 54 million.
Total operating income climbed 7% to AUD 438 million, driven by a 6% rise in total receivables to AUD 7.3 billion—the highest level in six years. New credit card and loan volume increased 4% to AUD 4.4 billion, with purchase volumes up 5% to AUD 3.6 billion and card transactions rising 7%. New customer additions totaled 148,000 during the period.
Net interest margin expanded by 27 basis points to approximately 12%, while the operating margin improved by 20 basis points to 12.2%. The cost-to-income ratio tightened to 41.3%, a 400-basis-point improvement from a year earlier. Risk-adjusted income stood at AUD 286 million at an 8% yield.
Credit quality metrics showed a rise in net charge-offs to 4.24% and a 90-day past-due rate of 1.27%, though provision coverage increased to 4.59%. The tangible equity ratio was reported at 8.1%, or 7% on a pro forma basis assuming Capital Notes 1 redemption.
The company declared an interim dividend of AUD 0.055 per share, fully franked, marking the fourth consecutive increase since the second half of 2024. Shares rose 8.33% to AUD 0.98 following the results, trading 12.6% above the 52-week low and 16.2% below the 52-week high.
Management highlighted execution under the 'Bridge to the Future' strategy launched in January, with CEO Bob Belan emphasizing a focus on interest margin risk-adjusted returns. CFO Guillaume Leger noted cost reductions were being reinvested into productivity and customer experience initiatives.
