Half Year 2024 Pepper Money Ltd Earnings Call Transcript
Key Points
- Mortgage volumes increased by 6% compared to the prior comparable period, indicating strong performance in the mortgage sector.
- Net interest margin (NIM) improved to 1.92%, up from 1.81% in the second half of 2023, reflecting better profitability.
- Expenses decreased by 2% compared to the first half of 2023, showcasing effective cost management.
- The company welcomed 37,357 new customers in the first half of 2024, demonstrating successful customer acquisition strategies.
- Pepper Money Ltd (ASX:PPM) declared a fully franked interim dividend of $0.05 per share, up from $0.035 per share in the 2023 interim dividend, reflecting a higher payout ratio of 47.5%.
- Asset finance originations were down 19% compared to the prior comparable period, impacted by soft market conditions and cost of living pressures.
- Business insolvencies increased by 36% over the fiscal year ending June 30, 2024, affecting asset finance performance.
- Mortgage lending AUM dropped by 9% on PCP to $11.3 billion, indicating a decline in mortgage assets under management.
- Specific provisions for asset finance increased by 12% due to heightened insolvencies, impacting credit performance.
- Total operating income reduced by 4% on PCP, driven by lower originations growth and increased loan loss expense.
Thank you for standing by, and welcome to the Pepper Money Limited 2024 half-year results briefing. (Operator Instructions)
I would now like to hand the conference over to Mr. Gordon Livingstone, Investor Relations. Please go ahead.
Good morning, everyone, and welcome to Pepper Money Limited's 2024 half-year results presentation. My name is Gordon Livingstone, Investor Relations at Pepper Money.
I would like to begin by acknowledging the traditional custodians of the land on which we meet today, the Gadigal people of the Eora Nation. We pay our respects to each of their Elders, past, present and emerging. Today, Pepper Money's CEO, Mario Rehayem will provide a business update, after which Pepper Money's CFO, Therese McGrath, will take us through the financial performance. After some closing remarks by Mario, there will be an opportunity to ask questions, which can be either via phone or submitted via the portal.
I'll now pass over to Pepper Money's CEO, Mario Rehayem.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
