UIL : Resimac Group FY23 Investor Presentation

RESIMAC GROUP LTD

FY23 Results Presentation

Scott McWilliam, CEO

Jason Azzopardi, CFO

FY23 highlights.

Normalised NPAT1,2

(excl. FV gains / losses on derivatives)

$73.7m

Cost to Income Ratio3

(Normalised)

43.6%

Settlements

$4.2b

Statutory

NPAT2

$66.5m

Assets Under

Management

$13.8b

FY23 dividend fully franked

8.0c

1 Excludes one-off item per reconciliation on slide 17. 2 Excludes non-controlling interest of $13k.

3 Excludes FV gains/losses on derivatives.

| 2

Economic environment

Lower owner occupied and investor housing credit activity. RBA cash rate nearing peak.

Housing credit ($b)1,2

									+13%
22.1	-20%								YoY
							19.2 20.2
19.9	YoY					16.2	17.9
15.6 15.9				-15%
	11.0	10.2			YoY
	8.0	8.7
Owner Occupied			Investor Loans	External Refinances
					● Dec 21	● Jun 22	● Dec 22 ● Jun 23
Underlying security values remain resilient3
				CHANGE IN DWELLING VALUES
INDEXED 30 JUNE 2023			MONTH			QUARTER		ANNUAL
Sydney				1.7%			4.9%		-5.1%
Melbourne				0.7%			1.8%		-5.7%
Brisbane				1.3%			3.0%		-8.2%
Adelaide				0.9%			2.1%		0.0%
Perth				0.9%			2.8%		2.5%
Combined Capitals				1.2%			3.3%		-4.8%
Combined Regional				0.5%			1.1%		-6.5%
National				1.1%			2.8%		-5.3%

1. ABS Lending Indicators June 2023, value of new borrower accepted loan commitments.
2. ABS Lending Indicators June 2023, External Refinancing values.
3. CoreLogic Hedonic Home Value Index, released 3 July 2023.

Cash rate (%)				4.10	4.10
			3.10
		0.85
0.10	0.10
Jun-21	Dec-21	Jun-22	Dec-22	Jun-23	Aug-23

Core inflation (%)

9.5

7.5

5.5

3.5

1.5

-0.5
		-15	-15	-16	-16	-17	-17	-18	-18	-19	-19			-21	-21
-14	-14	-20	-20	-22	-22	-22	-22	-23	-23
Jun	Dec	Jun	Dec	Jun	Dec	Jun	Dec	Jun	Dec	Jun	Dec	Jun	Dec	Jun	Dec	Mar		Jun	Sep	Dec	Mar	Jun
														● AU	● NZ	● US	● UK	● China

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Portfolio resilience

Risk of credit loss remains low despite higher arrears.

Repayment buffers1,2

% of loans

33%
23%		23%
2%	9%	10%

Overdue	On time	0-3 months	3-12 months	1-3 years	>3 years
		ahead	ahead	ahead	ahead

Original and dynamic LVRs2,3,4

73%	73%	73%	72%	71%
72%	72%	73%
72%	71%
69%	70%	69%
66%	66%	65%	66%	65%
			60%	55%
Jun-19	Jun-20	Jun-21	Jun-22	Jun-23
● Original LVR Prime   Dynamic LVR Prime	● Original LVR Specialist   Dynamic LVR Specialist

Credit loss exposure based on arrears2,3

	Loan value with Dynamic LVR >90% and no LMI	● Prime ● Specialist
	3		$2.0m	$0.6m	$0.6m
Loans	2
	1
# of
1
	1		1		1
	0
		31 to 60 days	61 to 90 days	90+ days

Dynamic LVR of originations2,3 by settlement fiscal year

48%

34%		29%
	22% 18%
	18%	8% 13%
			4% 5%
0-60%	60-70%	70-80%	80-90%	90%+

● 2022 ● 2023

1 Overdue includes loans 31+ days in arrears.3 Dynamic LVR = LVR based on current loan balance and 30 June 2023 CoreLogic individual property valuations.

2 Excludes NZ.

4 Original LVR = LVR based on original loan amount and property valuation at settlement.

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Home loan arrears

Arrears increasing however portfolio quality is sound and remains conservatively provisioned.

90+ days arrears by product

			● Prime	● Specialist
				1.31%
1.10%
	0.63%	0.70%		0.57%
			0.38%
0.09%	0.06%	0.11%	0.14%
Jun-19	Jun-20	Jun-21	Jun-22	Jun-23

90+ days arrears peer comparison1

			0.71%		0.80%
0.57%			0.63%
0.47%
	0.46%
Resimac Prime	CBA	Bendigo	NAB	ANZ	Westpac

SPECIFIC PROVISIONS2 $m		JUN-21	DEC-21	JUN -22	DEC-22	JUN-23
Prime		0.4	0.7	0.9	0.4	0.3
Specialist		3.0	3.1	1.5	1.2	0.7
Legacy (incl. RHG)		1.8	1.2	1.8	0.9	0.7
Other (incl. NZ)		0.2	0.1	0.0	0.0	0.1
Total specific provisions		5.4	5.1	4.2	2.5	1.8
Provisions / AUM (bps)		4bps	3bps	3bps	2bps	1bps
COLLECTIVE PROVISIONS2	$m	JUN-21	DEC-21	JUN -22	DEC-22	JUN-23
Prime		9.3	8.7	8.3	8.3	9.7
Specialist		19.2	21.0	29.1	29.1	27.7
Legacy (incl. RHG)		1.9	2.2	1.9	1.9	1.9
Other (incl. NZ)		1.7	1.7	1.3	1.3	1.3
Total collective provisions	32.1	33.6	40.6	40.6	40.6
Provisions / AUM (bps)		23bps	23bps	27bps	28bps	31bps
TOTAL PROVISIONS		37.5	38.7	44.8	43.1	42.4

1	CBA Results 30 June 2023, Bendigo Results 30 June 2023, NAB, ANZ and Westpac Third Quarter Update 30 June 2023.
2	Home loans only (excludes Asset Finance).	| 5