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Asset finance settlements fell to $0.8 billion in the 2026 financial year (FY26), down from $0.9 billion a year earlier, while applications declined to $1.2 billion from $1.4 billion.
Despite the lower origination volumes, Resimac’s asset finance assets under management (AUM) increased 7 per cent year on year to $1.5 billion, while average AUM rose 17 per cent to $1.4 billion.
The AUM figures exclude the Westpac auto portfolio, which has shrunk by around 73 per cent in a year, following Resimac’s acquisition of the portfolio back in October 2024.
The portfolio stood at around $1.1 billion in 1H25 before falling to $600 million in 2H25 and then $300 million in 1H26.
Resimac said that the acquisition, which cost around $1.5 billion at the time, made a significant contribution to the lender’s earnings in FY26, with the portfolio contributing $9.4 million to the group’s operating profit increase.
Asset finance shifts focus
Resimac’s asset finance settlement slowdown deepened through the year, with settlements falling from $440 million in the first half of FY25 and $460 million in the second half to $410 million in 1H26 and $360 million in the second half.
In terms of the composition of the portfolio, auto finance accounted for 46 per cent of FY26 settlements, followed by secured business loans at 37 per cent and equipment finance at 17 per cent.
At the end of June, auto finance represented 57 per cent of asset finance AUM, while equipment finance accounted for 20 per cent and secured business loans 23 per cent.
The shift towards returns rather than simply volume was reflected in margins, with asset finance net interest margin (NIM) increasing 13 basis points to 312 bps on a full-year average basis.
Credit performance and onward picture
Credit performance, however, proved to be a more mixed picture.
Asset finance collective provisioning coverage increased to 127 bps in FY26, up 11 bps from the previous year, even as the collective provision balance fell to $23.1 million from $28.7 million.
The 90-plus-day arrears rate for asset finance, excluding the Westpac auto portfolio, rose to 0.59 per cent at the end of FY26, up from 0.28 per cent six months earlier and 0.17 per cent at the end of FY25. The comparable S&P Auto figure was 0.33 per cent.
Overall, the lender reported stronger financial performance in FY26, largely due to a 20 per cent jump in mortgage settlements over the year.
As reported by The Adviser, the non-bank lender’s home loan settlements rose from $4.9 billion in FY25 to $5.9 billion in FY26 – driven by strong application demand, “deep broker relationships and continued execution of initiatives aimed at improving customer and broker experience”..
Pete Lirantzis, Resimac’s CEO, said that the lender’s asset finance division had “continued to focus on higher risk-adjusted returns and profitability rather than volume growth”.
“FY26 was a year of stronger earnings, disciplined growth and improved returns. We grew operating profit, expanded margins, maintained strong credit quality and increased shareholder returns while continuing to invest in the foundations of future growth,” he said.
The strategy is set to continue into FY27, with Resimac saying it will maintain disciplined origination in asset finance and remain focused on higher risk-adjusted returns.
It has also flagged plans to refine its asset finance products to improve risk-adjusted returns and scale complementary products to strengthen and diversify AUM.
Stronger group performance
Across the broader business, Resimac reported a normalised operating income of $197.8 million, up 17 per cent, while operating expenses rose 16 per cent to $104.9 million as the lender invested in people, technology, and strategic capability.
Normalised operating profit rose 18 per cent to $92.9 million, while normalised NPAT increased 26 per cent to $49.9 million. Statutory NPAT rose 42 per cent to $49.3 million, with Resimac pointing to the full-year contribution from the Westpac auto portfolio as one of the drivers.
[Related: Judo delivers strong FY26 result despite rocky finish]
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