Slides
Page 1
Liberty Financial Group FY26 Half Year Results 23 February 2026 For personal use only
Page 2
Liberty acknowledges the traditional owners of country throughout Australia. We acknowledge their continuing connections to the lands, waters, cultures and communities. We pay our respect to Elders past and present. In doing so we also acknowledge that sovereignty has never been ceded by the traditional owners of this country. Acknowledgement of Country For personal use only
Page 3
| 3 Presenting today James Boyle Chief Executive Officer Peter Riedel Chief Financial Officer For personal use only
Page 4
| 4 Agenda Overview Results Analysis Business Update Outlook Summary Questions 01 02 03 04 05 06 For personal use only
Page 5
01 Overview For personal use only
Page 6
| 6 Continued profit growth momentum NIM supported by positive funding markets Lower impairment expense as credit risk moderates Effective cost management lowers cost to income ratio Record originations from improved borrower demand Investment grade balance sheet with 13.8% cash ROE Acquisition of Moula to drive unsecured SME lending Overview % For personal use only
Page 7
| 7 Underlying NPATA $82.3m ($73.6m) +12% Net revenue $310.8m ($302.1m) +3% Cost to income 26.4% (27.3%) (90bps) BDD 5bps (10bps) (5bps) NIM 2.47% (2.50%) (3bps) Distribution 15c (12c^) +25% % *Balances represent: 1H26 (2H25) change between the periods ^Distribution represents: 1H26 (1H25) interim distribution Financial Highlights For personal use only
Page 8
| 8 Financial assets $14.8b ($14.7b) +1% New assets originated $3.1b ($2.3b) +35% Broker NPS 90 (83) +8% Average FTE Staff 498 (520) (4%) Impaired loans $283m ($341m) (17%) Customer NPS 58 (58) (-%) *Balances represent: 1H26 (2H25) change between the periods Operating Highlights For personal use only
Page 9
02 Results Analysis For personal use only
Page 10
| 10 $71.5 $73.6 $82.3 Statutory NPATA ($'m) $71.4 $73.6 $82.3 Underlying NPATA ($m) Increase in Underlying NPATA (1H26 v 2H25) explained by • Lower impairment expense as credit risk moderates ($6m) • Higher net fee and commission income driven by growth in originations and in distribution business transaction volumes ($2m) Increase in Underlying NPATA (1H26 v 1H25) explained by • Lower impairment expense as credit risk moderates ($7m) • Higher net fee and commission income driven by growth in originations and in distribution business transaction volumes ($2m) 1H25 1H262H251H25 2H25 1H26 *Refer Appendix for detailed reconciliation between statutory and underlying performance Impact of sale of MPRE • 1H25: higher statutory NPATA by ($0.1m) Profit Performance For personal use only
Page 11
| 11 9 10 5 Loan Impairment (bps) 26.9% 27.3% 26.4% Cost to Income (%) $759.8 $731.1 $712.2 Total Revenue ($'m) $302.2 $302.1 $310.8 Net Revenue ($'m) Total revenue reduced 3% (1H26 v 2H25) and 6% (1H26 v 1H25) driven by lower yield following pass through of RBA rate reductionsNet revenue increased 3% (1H26 v 2H25 and 1H25) with stable net interest income and higher fee and commission income Exit NIM 2.46% in line with 1H26 supported by positive funding markets Impairment lower 5bps (1H26 v 2H25) and 4bps (1H26 v 1H25) with stable realised losses and lower provisions reflecting reduced delinquency Cost to income reduction 1H26 v 1H25 and 1H26 v 2H25 driven by a combination of increased net revenue and holding operating costs stable Profit Drivers 1H25 2H25 1H26 1H25 2H25 1H26 1H25 2H25 1H26 1H25 2H25 1H26 For personal use only
Page 12
| 12 $14.7 $14.7 $14.7 Average Assets ($'b) 8.63% 8.37% 7.87% Yield (%) $46 $43 $46 Lending Income ($'m) $73 $75 $80 Average assets stable as commercial growth offsets reduction in residential and motor Record new originations $3.1b in 1H26 (v $2.3b 2H25 and $2.8b 1H25) as demand improves Loan discharges and prepayments continue to influence Residential portfolio growth despite higher originations Reduction in yield to 7.87% (1H26) from 8.37% (2H25) due to: • Full RBA cash rate passed on (40bps) • Targeted customer retention initiatives (3bps) • Origination yield lower than portfolio yield (6bps) • Asset mix (1bp) Increase in income reflects increase in new loan origination volumes Increase in income reflects increased transaction volumes in Australian and NZ distribution businesses Revenue 1H25 2H25 1H26 1H25 2H25 1H26 1H25 2H25 1H26 1H25 2H25 1H26 Commission Income ($'m) For personal use only
Page 13
| 13 4.38% 4.15% 3.71% 1.78% 1.71% 1.68% 6.16% 5.86% 5.39% Cost of Funding Funding benchmark 371bps in 1H26 (decrease of 44bps v 2H25 and 67bps v 1H25) from RBA cash rate decreases during 2025 Funding margin 168bps in 1H26 (decrease of 3bps from 2H25 and 10bps v 1H25) as margin on new term and renewed wholesale funding lower than prior periods 1H26 term issuance ($2.7b) supporting new originations All 1H26 maturing facilities renewed on improved terms ($4.2b) New MTN issue planned in Mar-26 subject to market conditions with plans to fund May-26 MTN maturity ($200m) Funding 1H25 2H25 1H26 Dec-24 Repaid New Issues Jun-25 Repaid New Issues Dec-25 173bps 122bps 167bps 114bps 163bps 10.3 9.7 9.6 1.5 2.7 (2.1) (2.8) Term Funding ($b) For personal use only
Page 14
| 14 Early-stage delinquency improved in 1H26 as customers used additional capacity from rate reductions to reduce arrears position The acquisition of Moula increased delinquency at 1H26 by 3bps Late-stage delinquency improved in 1H26 as customers used additional capacity from rate reductions to reduce arrears position The acquisition of Moula increased delinquency at 1H26 by 2bps Majority of customers in 90+ day delinquency supported by property security (75%) with an average LVR of 66% Delinquency 1H25 2H25 1H261H25 2H25 1H26 3.85% 4.08% 3.28% +30 Day Delinquency 2.06% 2.32% 1.91% +90 Day Delinquency For personal use only
Page 15
| 15 15 13 13 65 64 66 Provision Coverage (bps) Collective Specific Provisions Losses Reduction in Stage 2 and 3 higher risk balances due to reduction in interest rates Exposure with property security represents Stage 2 (84%) and Stage 3 (75%) supported by strong security position (LVR=57%, 66%) 50% of customers (by balance) in Stage 3 making active payments at 98% of contract amount Loss Provisions Increase in 1H26 balance as a result of the acquisition of Moula ($7m) Excluding Moula, decrease in total provisions across the periods Total provisions provide 34% coverage against Stage 3 balances (28% in 2H25) 1H25 2H25 1H26 1H25 2H25 1H26 Stage 1 Stage 2 Stage 3 Portfolio by Stage ($'m) Collective Provision by Stage ($'m) $12 $6 $6 $8 $9 $7 $50 $43 $47 $70 $58 $60 1H25 1H26 1H25 2H25 1H26 $14,799 $304 $14,103 $392 2H25 $341 $381 $13,945 $14,814 $283 $326 $14,205 $14,667 $27 $36 $37 $70 $58 $60 $97 $94 $97 Provisions by Nature ($'m) For personal use only
Page 16
| 16 Impairment expense 5bps in 1H26: • Lower realised losses (after provision release) • Lower specific provision reflects reduced portfolio delinquency • Lower collective provision reflects continued improving consumer and portfolio credit loss attributes, driving lower loss expectations across all segments Loan Impairment Realised Loss Specific Provision (Increase) Collective Provision Specific Provision (Release) Realised Loss Specific Provision (Increase) Collective Provision Specific Provision (Release) Realised Loss Specific Provision (Increase) Collective Provision Specific Provision (Release) 15 -11 9 -4 1H25 (9 bps) 13 -12 17 -8 2H25 (10 bps) 13 -17 12 -3 1H26 (5 bps) For personal use only
Page 17
| 17 Cash expense stable across periods Lower cost to income over the periods due to higher net revenue supported by stable operating expenses Lower personnel costs in 1H26 reflects lower average FTE Higher other costs in 1H26 from increased new loan originations Operating Expenses *Cost to income = Underlying personnel & other expenses (excluding commission expense) / Underlying Net Revenue Operating expenses ($m) 1H25 2H25 1H26 Personnel 45 48 45 Other 36 34 37 Cash expenses 81 82 82 IP amortisation 6 6 6 Total expenses 87 88 88 Cost to income (Liberty)* 26.9% 27.3% 26.4% FTE (average #) 528 520 498 For personal use only
Page 18
| 18 Interim Q1 distribution 7.5 cents paid in Oct-25 Interim Q2 distribution 7.5 cents paid in Dec-25 LTM distribution and special dividends (50 cents) equates to 12.1% yield based on security price of $4.14 (31-Dec-25) Interim Q3 distribution 7.5 cents to be paid on 26 March-26 with final distribution expected to be paid end of Aug-26 Distribution and special dividends in line with policy to optimise capital for growth and provide attractive yield for securityholders Distribution and Dividends FY24 FY25 FY26 Final Interim Special 12c 13c 25c 52c 15c 15c12c 20c 20c For personal use only
Page 19
| 19 Strong liquidity position with total ($9.4b) and available ($4.3b) limits at 31-Dec-25 Stable balance sheet and leverage Underlying cash ROE 13.8% Investment grade rating BBB (stable outlook) by Standard and Poor’s Loans to related parties repaid Financial Position $m Jun-25 Dec-25 Cash 888 923 Financial assets 14,660 14,802 Loans to related parties 77 - Other assets 618 643 Financing (14,707) (14,862) Other liabilities (343) (308) Net assets 1,193 1,198 Leverage ratio 13.6 13.7 *Leverage Ratio = Total Assets / Total Equity For personal use only
Page 20
03 Business Update For personal use only
Page 21
| 21 Record group new loan origination Higher residential originations offset by elevated discharges Commercial lending and portfolio growth remains strong Competition continues to impact motor finance Fin Services portfolio growth despite challenging environment Acquisition of Moula to drive unsecured SME lending Business Update For personal use only
Page 22
| 22 Growth in new residential loan origination given strong demand Growth in loan origination reflects improving consumer environment following interest rate reductions Growth in loan origination reflects record SME and SMSF loan origination Record half-yearly loan originations for the Group Return to origination growth across all asset classes following interest rate reductions and increased demand for credit Segment Loan Origination 1H25 2H25 1H26 1H25 2H25 1H26 1H25 2H25 1H26 1H25 2H25 1H26 $1,701 $1,351 $1,851 Residential ($'m) $874 $753 $1,006 Secured ($'m) $241 $182 $230 Fin Services ($'m) $2,816 $2,286 $3,087 Group ($'m) For personal use only
Page 23
| 23 Reduced portfolio as higher discharges and amortisation exceeded new loan origination Annualised discharge rate 40% (2H25 34% and 1H25 34%) Annualised amortisation rate 6% (2H25 2% and 1H25 6%) Growth in personal loan portfolio as higher new loan origination more than offset the increase in discharges and amortisation 1H26 balance incorporates approx. $100m unsecured SME loans Annualised discharge rate 20% (2H25 16% and 1H25 18%) Annualised amortisation rate 22% (2H25 20% and 1H25 20%) Continued strong SME and SMSF portfolio growth more than offset the small decline in the motor finance portfolio Annualised discharge rate 14% (2H25 10% and 1H25 12%) Annualised amortisation rate 10% (2H25 12% and 1H25 12%) Portfolio relatively stable across the periods 1H26 portfolio mix increased to 48% Secured and Financial Services (2H25 47%) Segment Loan Portfolio 1H25 2H25 1H26 1H25 2H25 1H26 1H25 2H25 1H26 1H25 2H25 1H26 $7,949 $7,752 $7,635 Residential ($'m) $5,848 $5,910 $6,124 Secured ($'m) $915 $916 $1,054 Fin Services ($'m) $14,799 $14,667 $14,814 Group ($'m) For personal use only
Page 24
| 24 12.4% 12.0% 12.3% 11.7% 12.5% 11.4% 10.9% LFG Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Bank 6 Non-Bank 1Non-Bank 2 Tier 1 Capital Ratio Industry leading net interest margin Bank-like capital strength Industry leading cost management Highest ROE to Leverage ratio Relative Value Drivers Results represent: LFG:1H26; Banks: FY25 or 1H26; Non-Banks: FY25 Tier 1 Capital Ratio represent: LFG=S&P RAC Ratio; Others APRA Tier 1 Ratio 2.47% 1.55% 2.04% 1.74% 1.94% 1.92% 1.64% 2.05% 1.54% LFG Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Bank 6 Non-Bank 1Non-Bank 2 Net Interest Margin 44.8% 58.7% 45.9% 49.6% 53.2% 63.0% 64.7% 50.5% 53.6% LFG Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Bank 6 Non-Bank 1Non-Bank 2 Cost to Income Ratio 13.8% 8.1% 13.8% 11.4% 9.7% 7.8% 6.4% 12.1% 8.9% 13.7 18.0 18.1 17.4 15.4 15.2 17.0 21.2 46.2 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 0.0% LFG Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Bank 6 Non-Bank 1 Non-Bank 2 Leverage (Line) ROE & Leverage For personal use only
Page 25
04 Outlook For personal use only
Page 26
| 26 Environment supports continued differentiation Increasing interest rates may impact delinquency Favourable funding markets will continue to support NIM Continuing NIM, CTI and ROA peer outperformance Automation to maintain leading operational efficiency Ongoing investment in improving digital experiences Outlook % For personal use only
Page 27
05 Summary For personal use only
Page 28
| 28 Continued profit growth momentum Leading peer NIM, CTI and ROA with bank-like capital Continued focus on exceptional service and cost to serve Strong liquidity and capital position to support growth Continuing investment in diversifying customer solutions Ongoing investment in digital customer solutions Summary % For personal use only
Page 29
06 Questions For personal use only
Page 30
Appendix For personal use only
Page 31
| 31 Who is LFG? Started 1997 and only investment grade non-bank (BBB/stable/A-2) Pioneered specialty finance industry in Australia and New Zealand Over 500 professionals, Melbourne head office Operates through three key segments: Residential Finance, Secured Finance and Financial Services Advanced risk-management capabilities Proprietary technology supports operations STRONG S&P Servicer rating across all asset classes Diversified products, services, revenues and profits Unblemished capital markets track record Liberty Financial Durable Business Model Diversified Portfolio Residential - 52% Secured - 41% Financial Services - 7% $14.8b For personal use only
Page 32
| 32 Products and Service Financial Services Lending activities Loan and insurance distribution Investments Motor finance • Secured prime and custom lending for vehicles purchased privately and through dealerships in Australia Commercial finance • Secured commercial property mortgages to SMEs and SMSFs for working capital, owner occupier loans and investment loans in Australia Secured Finance Investments • Debenture and management investment scheme products for short and long-term investing in Australia and New Zealand Personal loans • Personal loans in Australia SME loans • SME loans in Australia Life insurance distribution • Distributor of life insurance in Australia Broker network and aggregators • Mortgage broker distributing loans and insurance products in Australia and New Zealand Australian mortgages • Prime and custom lending for residential owner occupier and investment properties New Zealand mortgages • Prime and custom lending for residential owner occupier and investment properties Residential Finance For personal use only
Page 33
| 33 Segment Performance Relative segment portfolio mix continues trajectory toward Secured and Financial Services Higher yielding Secured and Financial Services assets generate higher relative contribution to Group net revenue and contribution Residential Secured Fin Services Residential Secured Fin Services Residential Secured Fin Services 2H24 1H25 2H25 1H261H24 53% 41% 6% 41% 7% 57% 38% 5% 55% 39% 6% 54% 40% 6% Closing Portfolio 27% 24% 24% 24% 25% 38% 41% 41% 41% 38% 35% 35% 35% 35% 37% 1H24 2H24 1H25 2H25 1H26 Net Revenue 36% 27% 29% 28% 31% 54% 59% 60% 62% 54% 10% 14% 11% 10% 15% 1H24 2H24 1H25 2H25 1H26 Net Contribution 52% For personal use only
Page 34
| 34 Expected Credit Loss Lower future expected losses reflecting improved customer and portfolio loss characteristics Increase in Financial Services as a result of the Moula acquisition ($7m, 22bps annual expected loss) Reductions across all ECL segments - Residential (1bp), Secured (3bps) and Financial Services excluding Moula (6bps) *HVI – Home Value Index Economic Scenarios (Aust) Current Upside Baseline Downside Probability weighting (Jun-25) - 5% (5%) 65% (65%) 30% (30%) Unemployment 4.4% 4.4% 4.4% 5.4% GDP 2.0% 3.0% 2.1% 1.0% Property Prices (HVI*) 220 238 232 211 RBA Cash Rate 3.6% 3.0% 3.3% 3.8% Expected Loss Jun-25 Residential Secured Fin Serv Dec-25 Loan life 0.40% 0.08% 0.57% 2.17% 0.41% Annual 0.15% 0.03% 0.17% 0.87% 0.15% $6.5 $6.2 $37.0 $33.8 $14.1 ($0.3) ($3.2) $6.3 $20.4 ECL by Segment $57.6 $60.4 ECL Economic Scenarios ($m) Calculated ECL 100% upside 100% baseline ECL Movement 100% downside $81 $21m(-) $60 ($14m) $46 ($9m) $51 For personal use only
Page 35
| 35 Reconciliation Statutory to Underlying $'m 1H25 2H25 1H26 Statutory NPAT 65.6 67.7 76.4 IP amortisation 5.9 5.9 5.9 Statutory NPATA 71.5 73.6 82.3 Commission income (1.9) 0.2 - Commission expense 1.5 (0.1) - Personnel costs - - - Other expenses – operating expenses 0.2 - - Other expenses - impairment of goodwill - - - Other expenses – gain on sale of business operations - (0.1) - Tax effect of adjustments 0.1 - - Total adjustments (0.1) - - Underlying NPATA 71.4 73.6 82.3 For personal use only
Page 36
| 36 Statutory P&L $'m 1H25 2H25 1H26 Interest income on financial assets measured at amortised cost 639.6 611.2 584.7 Interest income on financial assets measured at fair value 0.4 0.6 0.2 Effective yield fee income on financial assets measured at amortised cost 21.5 20.1 21.1 Other financial income 99.8 98.1 105.9 Other income 0.4 1.0 0.3 Total operating income 761.7 731.1 712.2 Finance expense (584.9) (555.0) (532.9) Impairment loss on financial assets measured at amortised cost (14.3) (13.2) (7.0) Personnel expenses (45.2) (47.8) (44.8) Other expenses (42.1) (40.8) (43.2) Total operating expense (686.5) (656.8) (627.9) Profit before income tax 75.2 74.3 84.3 Income tax expense (9.6) (6.5) (7.9) Profit after income tax 65.6 67.7 76.4 For personal use only
Page 37
| 37 Disclaimer The information provided in this presentation and any information supplied in connection with this presentation (“Presentation”) has been prepared by Liberty Financial Group Limited (ACN 125 611 574) (“Company”) and Liberty Fiduciary Ltd (ACN 119 884 623) as the responsible entity of Liberty Financial Group Trust (“Trust”) (the Company and Trust together, “Liberty Group”), which together with their subsidiaries, operates the Liberty lending and financial services business (“Liberty”). The information in this Presentation is current as at 23 February 2026. It is in summary form and is not necessarily complete. It should be read together with the Liberty Group results for the half year 31 December 2025. Forward-looking statements This Presentation contains certain forward-looking statements and comments about future events, including Liberty’s expectations about the performance of its businesses and certain strategic transactions. Forward-looking statements can generally be identified by the use of forward-looking words such as, “expect”, “anticipate”, “likely”, “intend”, “should”, “could”, “may”, “predict”, “plan”, “propose”, “will”, “believe”, “forecast”, “estimate”, “target” and other expressions having a similar meaning. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, both general and specific, and there is a risk that such predictions, forecasts, projections and other forward- looking statements will not be achieved. A number of important factors could cause the Liberty Group’s actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements, and many of these factors are beyond Liberty Group’s control. Forward-looking statements are provided as a general guide only, and should not be relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainty and other factors, many of which are outside the control of the Liberty Group. As such, undue reliance should not be placed on any forward-looking statement. Past performance is not necessarily a guide to future performance and no representation or warranty is made by any person as to the likelihood of achievement or reasonableness of any forward-looking statements, forecast financial information or other forecast. Nothing contained in this Presentation nor any information made available to you is, or may be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of the Liberty Group. No offer of securities This Presentation is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to dispose or purchase any securities of the Liberty Group or any member of Liberty, in any jurisdiction. Disclaimer This Presentation does not constitute investment or financial product advice (nor taxation or legal advice) or a recommendation to acquire or dispose of any securities in the Liberty Group or any member of Liberty and is not intended to be used as the basis for making any investment decision. In providing this Presentation, Liberty has not considered the objectives, financial position or needs of any particular recipient. This Presentation should not be relied upon as a recommendation or forecast by the Liberty Group. No member of Liberty, their related bodies corporate, shareholders or affiliates, nor any of their respective officers, directors, employees, affiliates, agents or advisers (each a “Limited Party”) guarantees or makes any representations or warranties, express or implied, as to or takes responsibility for, the accuracy, reliability, completeness or fairness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, each Limited Party expressly disclaims any and all liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from or in connection with the use of information contained in this Presentation including any representations or warranties about or in relation to the accuracy or completeness of the information, statements, opinions or matters, express or implied, contained in, arising out of or derived from, or for omissions from, this presentation including, without limitation, any financial information, any estimates or projections and any other financial information derived therefrom. You acknowledge that it is not intended that any Limited Party act or be responsible as a fiduciary to any recipient of this Presentation, its officers, employees, consultants, agents, security holders, creditors or any other person, and you and the Limited Parties expressly disclaim any such fiduciary relationship. You agree that you are responsible for making your own independent judgments with respect to the presentation and the information contained in it or any other matters arising out or in connection with this Presentation. For personal use only
Page 38
Thank you Thank you For personal use only