AI assistant
LIBERTY FINANCIAL GROUP — Earnings Release 2021
Aug 29, 2021
65227_rns_2021-08-29_c26dabd2-42cb-4090-9552-56e3df5f2485.pdf
Earnings Release
Open in viewerOpens in your device viewer
30 August 2021
LIBERTY FINANCIAL GROUP FY21 RESULTS
Financial Highlights
| FY21 | FY20 | Movement | |
|---|---|---|---|
| Statutory NPAT1 | $185.4m | $134.7m | +38% |
| Underlying NPATA2 | $226.0m | $140.6m | +61% |
| Gross Financial Assets | $12.3b | $11.7b | +5% |
| Underlying Return on Assets | 1.9% | 1.2% | +70bps |
| Leverage Ratio (end of period) | 13.1x | 12.7x | +3% |
Leading non-bank lender, Liberty Financial Group (ASX:LFG) has reported strong financial performance for its first full-year results since becoming an ASX listed company.
James Boyle, Chief Executive Officer, said the strong result was achieved in a period of increased competition and amid the continuing uncertainty COVID is placing on customers and the economy. “We achieved our objective of continuing to help more people get and stay financial with Liberty,” he said.
LFG reported an increase in its portfolio of financial assets to $12.3 billion and an increase in statutory NPAT to $185.4 million. After adjusting for non-recurring IPO expenses and non-cash amortisation, LFG reports growth in Underlying NPATA of 61% to $226.0 million for the year ended 30 June 2021.
“Liberty’s business partners and customers have shown tremendous resilience during the pandemic,” Mr Boyle added. LFG reported 17% growth in new loans to $4.1 billion as well as a reduction in customers impacted by COVID to 0.7% of the portfolio as at 30 June 2021 (9.7% as at 30 June 2020). “The current Australia wide lockdown and speed of vaccination rollout is causing continued short-term economic uncertainty impacting customer sentiment. However, all things equal, we remain confident of generating further value for Securityholders in FY22,” Mr Boyle concluded.
Peter Riedel, Chief Financial Officer, said “LFG’s capital and liquidity position remains in a strong position to continue supporting our customers and business partners. LFG established eight new funding vehicles in FY21 raising $4.9b in the new liquidity.” During the year, Standard & Poor’s placed Liberty’s investment grade credit rating on positive outlook.
LFG announced its inaugural distribution of 24 cents per Security unfranked at an implied dividend yield of 6% (based on a Security price of $7).
Authorised by the Board.
ENDS
Media contact:
Rupert Hugh-Jones +61 401 693 016 [email protected]
About the Liberty Group
Liberty Financial Group is a leading diversified finance company in Australia and New Zealand. Its businesses include residential and commercial mortgages, motor vehicle finance, personal loans, business loans, broking services, general insurance and investments. Since 1997, Liberty has raised more than $33 billion in domestic and international capital markets and helped more than 600,000 customers get financial.
1 Net profit after tax
2 Net profit after tax and amortisation where “Underlying” means “Pro-Forma” in the Prospectus.