Solvar Ltd reported a 7.5% year-over-year increase in normalized net profit after tax to $36.1 million for the fiscal year ended June 30, 2026, as commercial lending surged and the Australian loan book expanded. The statutory net profit declined 6.2% to $29.5 million, reflecting $6.6 million in one-off adjustments including litigation costs and foreign exchange losses.
The Australian loan book grew 10.5% to $920.3 million, while Bennji, Solvar’s commercial lending division, saw receivables rise 88.2% to $109.8 million. Group interest income fell 6.7% to $193.4 million, though Australian interest income remained flat at $180.3 million. Interest expenses decreased 8.3% to $47.7 million, and the net interest margin narrowed to 15.6% from 16.9% a year earlier.
Bad debt ratios improved, with group bad debts declining to 3.6% from 4.4% in FY25. Australian bad debts edged up to 4.4%, within the guided range of 3.5% to 4.5%. Portfolio quality in Australia strengthened to 81%, up from 77% in the prior year. The group’s leverage ratio increased to 74%, with capacity to reach approximately 80%.
Solvar declared a total fully franked dividend of 19.5 cents per share for FY26, a 39.3% increase from the prior year, including a final dividend of 6.0 cents and a special dividend of 2.5 cents. The payment date is set for October 7, 2026. Management characterized FY26 as a "reset year," positioning the company for accelerated growth through commercial expansion and improved funding margins.
The group also reported $70.0 million in franking credits as of June 30, 2026, and completed $11.5 million in share buybacks during the year, reducing outstanding shares by 10.3% since FY23. Total funding facilities secured reached $1.09 billion, with $409 million in headroom. A new $488 million warehouse facility reduced funder margins by about 1% in Money3’s debt facilities.
Management highlighted June 2026 as one of the strongest months for settlements in the group’s history, with Australian originations up 66% between FY25 Q4 and FY26 Q4. The company plans to invest between $3 million and $5 million in technology in FY27, including the launch of a new underwriting platform for Money3.
