Investor Presentaiton
#3 - FINANCIAL RESULTS
Profit & loss
($m, 6 months to September, pro forma¹)
H1 FY20
H1 FY21
% change
Interest revenue
18.3
23.9
31%
Other income
0.1
2.1
> 100%
Total revenue pre transaction costs
18.4
26.0
41%
Transaction costs
(0.8)
(1.0)
30%
Net income
17.7
25.0
42%
Funding costs
(9.6)
(12.3)
28%
Expense passed to unitholders
0.1
(0.1)
n.m.
Customer loan impairment expense
(4.4)
(3.0)
(32)%
Sales and marketing expense
(4.6)
(4.0)
(14)%
Product development expense
(2.3)
(2.5)
10%
General and administration expense
(4.5)
(6.1)
37%
Depreciation & amortisation
(0.3)
(0.4)
21%
NLAT
(7.9)
(3.4)
(57)%
Cash NLAT²
(6.9)
(1.5)
(79)%
Key metrics
Average interest rate
13.3%
12.1%
(9)%
Average funding rate
7.1%
6.3%
(12)%
3
Net charge-off rate
Cost to income ratio
2.7%
1.1%
(59)%
4
61.6%
48.5%
21%
Note: 1) Refer to page 31 for a reconciliation of pro forma to statutory results. 2) Refer to page 32
for a reconciliation between NLAT and cash NLAT. 3) Net charge-off rate calculated as actual loan
Plenti receivables written off in the period net of loss recoveries divided by average loan portfolio value.
4) Sales and marketing expense, product development expense and general and administration
expense as a % of total revenue
•
31% revenue growth driven by loan
origination and portfolio growth
Other income primarily relates to $1.5m
R&D rebate (in FY20 rebate received in H2)
Transaction costs primarily relate to broker
commissions - growing with automotive
origination growth
32% reduction in loan impairment expense
despite additional risk overlay in ECL
provision (overlay up $2.5m versus 31
March)
Sales and marketing expense down on
COVID spend pull-back
G&A up on investment in team and loan
processing costs
Reduction in average interest rate earned
and average funding rate reflects book mix -
particularly increased proportion of
automotive loans
At product level, automotive and
personal margins up, renewable flat
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