Latitude reports HY result and CEO to Retire

Fintech Market Updates

ASX Latitude Financial Services has reported their FY Earnings, whilst at the same time Ahmed Fahour AO CEO has announced his retirement.

• Statutory NPAT of $30.6 million

• Cash NPAT of $93 million, above consensus forecast of $90 million

• 1H22 dividend of 7.85 cents per share fully franked, unchanged from 2H21 and 1H21, including a dividend reinvestment plan

• Strong Balance Sheet: Surplus TER of 9.2% ahead of 6-7% target range; prudent provisioning with loss coverage at 3.74%; $2 billion of funding headroom and no requirement to access debt markets for the next 12 months; high margins (NIM 11.3%) and room for product re-pricing

• Operating expenses of $174 million, down 9% on 2H21 and flat against 1H21 despite additional costs of being publicly listed and Symple Loans integration

Commenting in an ASX announcement Managing Director and CEO Ahmed Fahour said :

“The Cash NPAT result of $93 million, which is above consensus forecast, and our strong underlying balance sheet highlight Latitude’s competitive and strategic advantage at a time of economic uncertainty. We have positioned the business to take advantage of the growth opportunities that we believe will emerge in the next 12-18 months."

Latitude Financial Services is listed on the ASX under the Code: LFS