Resimac Group reported a 26% increase in normalized net profit after tax to $49.9 million for the 2026 fiscal year, as home loan growth and the integration of Westpac’s auto portfolio offset rising operating costs.
Statutory net profit after tax climbed 42% to $49.2 million, while normalized operating profit advanced 18% to $92.9 million. Operating income rose 17% to $197.8 million, with expenses up 16% due to investments in technology and staffing. The cost-to-income ratio improved to 53.0% from 53.6% in the prior year, and return on equity increased to 13.6% from 10.1%.
Home loan settlements surged 20% to $5.9 billion, with applications up 24% to $9.4 billion despite a 10% moderation following federal budget changes. Assets under management reached $14.7 billion at year-end, up 10% from $13.4 billion. Prime lending accounted for 57% of the home loan book, with owner-occupied loans comprising 53%. Arrears remained low, at 0.41% for prime loans and 1.24% for non-conforming loans, both below sector benchmarks.
The Westpac auto portfolio contributed $9.4 million to operating profit in its first full year, while asset finance settlements moderated to $0.8 billion. Asset finance average AUM rose 17% to $1.4 billion, with net interest margins expanding to 312 basis points. Total loan impairment expense declined to $21.4 million from $22.6 million, and net write-offs fell to $8.7 million from $15.7 million.
Funding activity increased 28% to $5.5 billion, including $5.0 billion in residential mortgage-backed securities and $0.5 billion in asset-backed securities. Prime RMBS senior margins tightened to 110 basis points, while non-conforming margins stood at 123 basis points. Group net interest margin rose 5 basis points to 159 basis points.
Shareholders received a fully franked ordinary dividend of 10.0 cents per share, up 43% from 7.0 cents in FY25, alongside a special dividend of 9.0 cents per share. The company retained $103.3 million in franking credits. Shares rose 10.06% to $0.93 following the announcement.
Resimac also published its first Annual Sustainability Report for FY26 under the Australian Sustainability Reporting Standards, highlighting environmental initiatives including the planting of over 46,000 trees.
