Resimac Group has reported significantly stronger earnings for FY26, with normalised net profit after tax rising 25% to $49.9 million compared to $39.7 million in FY25. The improvement supported a 43% increase in the ordinary dividend to 10.0 cents per share from 7.0 cents, alongside a special dividend of 9.0 cents. The result reflects the performance of Resimac’s core home loans business and the benefits of structural changes, including the integration of the Westpac Auto Portfolio completed earlier this year.
The momentum in home loans underpinned the earnings lift throughout FY26. Home loan settlements increased 20% year-on-year to $5.9 billion, driven by strong application flow that reached $9.4 billion despite a competitive mortgage market. The closing loan portfolio expanded 10% to $14.7 billion, reflecting both strong settlements and solid retention of existing customers. Prime lending growth accelerated through the period, improving the overall quality and risk profile of the portfolio while providing a stronger platform for future earnings leverage.
Resimac has demonstrated improving operational discipline alongside this growth. The normalised cost to income ratio improved to 53.0% from 53.6%, indicating the company is scaling efficiently while controlling cost inflation. Normalised operating profit rose 18% to $92.9 million, showing the business is converting revenue growth into earnings with better operating leverage. Return on equity on a normalised basis lifted to 13.6% from 10.1%, reflecting both stronger underlying profitability and improved capital deployment.
Asset financing continues to diversify the revenue base and customer offerings, with AUM reaching $1.5 billion. Securitisation issuance for FY26 totalled $5.5 billion, up from $4.3 billion in the prior year, demonstrating robust access to funding markets and continued investor appetite for Resimac’s assets. The funding execution supports the company’s ability to fund ongoing growth while maintaining a strong capital position, relevant given the current macro environment and potential for continued rate volatility.
Investors should monitor whether Resimac can sustain home loan application momentum as mortgage rates have stabilised and the competitive environment remains intense. The improvement in return on equity is material for a company that has historically traded at a discount to peers, though credit performance and funding cost management remain key execution risks. This announcement has been flagged as price sensitive and material by the ASX.
View the full ASX announcement (PDF)
About Resimac Group Limited (ASX: RMC)
Resimac is an ASX-listed mortgage bank providing residential mortgage lending and related financial services in Australia. The company originates and manages a portfolio of mortgages for borrowers across Australia. Resimac operates as a non-bank lender specializing in residential mortgage products and services.
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