Latitude Group Holdings reported a 39% year-on-year increase in cash net profit after tax to A$64 million for the six months ended June 30, 2026, alongside a 12% rise in cash profit before tax to A$105 million.
Total operating income grew 7% to A$438 million, driven by a 4% increase in interest income to A$611 million. Net interest margin expanded by 27 basis points to 12.0%, while the cash cost-to-income ratio improved by 390 basis points to 41.3%. Operating expenses declined 2% to A$181 million, with headcount reduced to 707 full-time employees.
The company’s cash net profit after tax reached A$64 million, up from A$46 million in the same period last year. Return on average gross receivables rose to 1.8%, an increase of 40 basis points, while return on tangible equity climbed to 24.8%. Total receivables grew 4% year-on-year to A$7.3 billion, the highest level in six years.
New customer accounts increased by 1% to 148,000, with total card transactions rising 7% to 30 million. Card purchase volume grew 5% to A$3.6 billion, while new personal and auto loan originations remained flat at A$785 million. Interest-bearing receivables expanded 7% to A$5.6 billion.
Latitude maintained its position as Australia’s second-largest personal loan brand and saw its card market share rise by 33 basis points to 9.1%. Personal loan receivables reached a record A$3.4 billion, up 7% year-on-year, while card receivables grew to A$3.8 billion.
The Money Division reported a 16% compound annual growth rate in new origination volume to A$785 million, with a portfolio yield of 16.4%. The Pay Division recorded an 11% annual increase in applications to 277,000, with new accounts totaling 98,000 and card purchase volume per account rising 11% to A$2,425.
Net charge-offs increased to 5.1% from 4.7%, while the 90+ days past due rate rose by 13 basis points to 1.7%. The provision coverage rate stood at 4.59%. Latitude raised A$2.3 billion in capital during the period through public ABS issuance and private credit facilities.
The company issued approximately A$135 million in Capital Notes 2 and reduced unsecured corporate debt at the holding company level to about A$30 million. A fully franked interim dividend of 5.5 cents per share was declared, marking the fourth consecutive increase since the second half of 2024.
Tangible equity ratio strengthened to 8.1%, up 110 basis points year-on-year, with expectations to normalize toward a 6% to 7% operating range over time.
