RESIMAC GROUP LTD
2024
Annual
Report.
Resimac was focused
in FY24 on progressing
our strategic objectives
in an economically
challenging environment.
The Asset Finance business was successful in achieving $1.1b
in AUM, up from $600m in FY23. Mortgage originations were
challenged in the first half of the year, primarily due to intense
competitive pressures in the home loans market and led to an
overall decrease in AUM.
Pleasingly we saw an improved second half of the year and
Resimac is on track for an improved AUM balance in FY25.
Susan Hansen, Interim CEO
CONTENTS
TABLE OF
1
About Resimac
4
2
Chairman’s message
6
3
CEO’s message
8
4
Board of Directors
10
5
Sustainability report
12
6
Directors' report
18
7
Remuneration report
27
8
Financial statements
42
9
Notes to the consolidated financial statements
48
10
Directors' declaration
129
11
Independent auditor’s declaration
130
12
Independent auditor’s report
131
13
Shareholder information
136
14
Managing your shareholding
138
15
Corporate information
139
Welcome!
Welcome!
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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About
Resimac.
Est. 1985
Resimac Group Ltd ('Resimac Group') is a leading non-bank lender and multi-channel
distribution business.
Its fully integrated business model comprises originating, servicing and funding prime, non-
conforming residential mortgages and asset finance products in Australia.
With a history dating back to 1985, Resimac Group has a proven track record of growth and
stability. We are pleased to service over 55,000 customers with a portfolio of home loans
on balance sheet of almost $13 billion, an asset finance portfolio of over $1 billion, and total
assets under management of over $14 billion.
As a pioneer of the Residential Mortgage-Backed Securities ('RMBS') industry, we have one
of Australia’s most respected securitisation programs, having issued almost $50 billion in
domestic and global markets since 1987.
Resimac Group has access to a diversified funding platform with multiple warehouse lines
provided by domestic and offshore banks for short-term funding in addition to a global
securitisation program to fund its assets longer term.
Thanks to our flexible global capital markets programme, we provide solutions to a wide
range of customers including the self-employed and contractors, as well as customers with
previous credit impairments through our network of over 12,000 broker partners.
Resimac Group is a profitable organisation with diverse income streams - net interest margin
on principally funded loans, annuity trail income on non-principally funded loans and other
fee income. We operate a proprietary servicing platform and hold a Standard & Poor's ('S&P')
"STRONG" Servicer Ranking, which was reaffirmed in September 2024.
Prime and
non-conforming
home loans
Awarded
investment
property lender
Specialist in
helping the
self-employed
Secured
business
loans
Equipment
lending
Business and
consumer
auto
Home Loan.
Asset Finance.
As a pioneer of the RMBS industry, we have
one of Australia's most respected securitisation
programs, having issued almost $50 billion
in domestic and global markets since 1987.
Our
vision.
To be a customer-
obsessed company,
making home
ownership, financial
freedom and
business success
more accessible to
everyone.
Our
purpose.
To provide Australians
with better lending
solutions, because
we believe everyone
deserves an
opportunity to achieve
their dreams and attain
their ambitions.
FY24 Home Loan
settlements
$4.3b
vs. FY23 $3.7b
FY24 Asset Finance
settlements
$0.8b
Record month in Jun-24
2H24 vs. 1H24 Home
Loan AUM increased
3%
in a six month period
Asset Finance
settlement
balance growth
Year-on-Year
+60%
Jun-22
0.4
Dec-22
0.5
Jun-23
0.6
Dec-23
1.0
Jun-24
1.1
Asset Finance AUM ($b)
Our
values.
Respect
Opportunity
Purposeful
Accountability
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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Chairman’s
message.
Dear Shareholder,
Without doubt FY24 proved to be the toughest
year for the non-bank sector since the 2008-10
GFC. I foreshadowed in my FY23 report that
we were expecting the year to be difficult, but
we were surprised by the scale and diversity
of the operating conditions that we faced. Our
net profit on a normalised basis (NPAT) fell by
42%, driven by a combination of lower average
Home Loans Assets Under Management (AUM)
which fell by 22% for the year and a contraction
in net interest rate margin. As a result of the
challenges in the operating environment, we
made the pragmatic decision to reduce the fully
franked dividend from 8 cents per share to 7
cents for FY24. We have set ourselves a target
of restoring dividend as early as possible.
In August 2024, Our CEO, Mr Scott McWilliam
resigned. Ms Susan Hansen, a six-year
non-executive director of Resimac, agreed
immediately to assume responsibility as Interim
CEO and be accountable for all the day-to-day
activities of the company. This provided a crucial
and immediate level of stability to the Senior
Management team, and additionally ongoing
confidence to shareholders, stakeholders and
investors (both equity and our institutional bond
holders). Demonstrating the practicalities of the
maintenance of stability was the launch of a A$1
billion bond issue launched in the domestic and
international market on 2nd October 2024.
A major reason behind the NPAT decline was
the severity of competition from the banking
segment, especially the major 5 banks, which
were relentless in their pursuit of writing
new mortgage loan business and refinancing
opportunities from loans previously written by
non-banks and smaller ADI’s. The genesis of the
competitive pressure reflected the abnormally
cheap $220 billion financing lines for up to 3
years from the RBA to the banks (and much
smaller lines available to ADI’s) at a defacto
“subsidised” 10 bps per year. As these mortgage
loans rolled off, the banks then competed
aggressively to maintain their market share.
Fortuitously, by the fourth quarter of FY24
the intensity of pricing competition was
abating, and we have gradually improved our
competitive positioning accordingly. We expect
this to continue throughout FY25, providing an
improvement in our margins.
Importantly, our capability to lend to higher
risk mortgage borrowers (often small business
owners from skilled trades to small business
professionals such as medical and associated
services), acted as an important buffer to the
drop in lending by the more ‘standard’ owner
occupier and investor prime loan borrowers.
This market segment, which we term Specialist
Lending, has grown extensively since we
commenced lending to this category of borrower
in December 2007 and is now a key part of our
mortgage product family.
Equally significant in organic growth has been
our emerging asset finance business. We only
diversified in late 2021 from mortgage lending
to a more broadly based set of assets such as
auto and truck lending. Our strong new business
volume for asset finance helped this portfolio
to exceed the $1 billion mark in FY24. Resimac’s
expansion plans for asset finance are ambitious
and form a pivotal part of our strategic business
plan for the next 3 to 5 years.
Our aim for Resimac remains to develop into a
diversified and well-balanced organisation as
measured by risk and return metrics through an
integrated mortgage lending and asset-based
lending business.
Focus on automation has improved efficiencies
and customer outcomes including speed
to market, simplification of processes, and
increasing self-service capabilities to our broker
network. Our customer surveys are starting to
reflect the improvements in satisfaction from the
above improvements.
Warren McLeland
Our aim for
Resimac
remains to
develop into
a diversified
and well-
balanced
organisation
as measured
by risk
and return
metrics
through an
integrated
mortgage
lending and
asset-based
lending
business.
Despite the challenges of FY24,
our credit standards have remained
strong. Consequently, arrears levels
and loan losses have remained
low. However, arrears are higher
than what has been the pattern
for the preceding 4 to 5 years.
Unfortunately, some borrowers have
experienced payment difficulties,
driven by the unprecedented cash
rate increases and challenging
economic conditions. In response,
Resimac has further invested in
our customer care policies and
procedures, focusing on early
identification of payment difficulties,
to provide assistance in the form
of customer counselling and direct
financial assistance.
We are anticipating this higher
level of assistance will continue
throughout FY25 given the
expectation that economic recovery
will be only gradual. At this stage,
we do not expect job growth will
be meaningful throughout the year.
With the growth in asset-based
financing, we are forecasting a
higher level of arrears and higher
losses on receivables as is standard
in general asset-based lending.
However, we will remain prudent,
diligent, and conservative overall
and aim to manage the newer class
of receivables with full care and
attention.
Resimac continues to allocate
significant capital investment into
process and system improvements
to facilitate the totality of the
customers’ experience when dealing
with us. Our organisation’s transition
to be fully oriented around our
customers will accelerate in FY25
and FY26.
Resimac has traditionally excelled
in the critical function of sourcing
external funding, both short-term
(using largely bank supplied
warehousing) and long-term
(utilising Resimac’s fundamental
core competency of securitisation
which remains supreme in status
within the industry). We believe our
funding capability and worldwide
reputation is a distinct and enduring
competitive advantage. Resimac’s
relatively small team of highly
experienced professionals has
continued to deliver innovative
developments to the market.
On behalf of the Board of Directors,
once again I acknowledge the
support of our shareholders for
their ongoing commitment to
Resimac. Your Board is confident
of returning the company to being
growth focussed, combined with
a corresponding and sustainable
increase in fully franked annual
dividends. To our hard-working
dedicated team of employees, I
extend a massive thank you for
your commitment and loyalty. We
are commencing next calendar year
with a move to new premises in Kent
Street, Sydney. This will provide
a modern operating environment
and contemporary design, both
enhancing our workspace to
support our high-performing team
and strengthening our collaborative
culture.
The Board extends our sincere
gratitude to Susan for her generous
commitment in stepping in as
interim CEO at short notice. Susan
will continue in this role, while the
Board conducts a thorough internal
and external review to identify
the most suitable candidate to
lead Resimac as its new CEO. The
Board and I will fully support Susan
throughout this period until the
appointment of a permanent CEO is
successfully finalised.
Warren J McLeland
Chairman
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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Interim CEO’s
message.
Susan Hansen
With the growth in
our Asset Finance
book and the
relatively higher risk
profile, we increased
our provision to be in
line with the industry.
Home Loan
AUM
$12.9b
Asset Finance
AUM
$1.1b
FY24 dividend
fully franked
7.0c
Our customers
People all across Australia are struggling with
higher costs of living, from their mortgages
to consumer goods. We continue to work
constructively with our customers whose life’s
circumstances lead them to require financial
assistance. A framework has been embedded
throughout the organisation to ensure we
manage this process with efficacy and empathy.
We are grateful to all our people who have been
involved in implementing this framework and
who have taken care of our borrowers when
they have needed help.
Business and leadership changes
A strategic review of our New Zealand business
concluded that the current environment of
subdued economic growth, deteriorating
housing market, increased regulation and
relatively poor returns was not conducive
to earning an appropriate return on capital.
Hence, we have ceased originating in the New
Zealand market for the foreseeable future.
We do however maintain a presence in New
Zealand, supporting our existing borrowers and
stakeholders.
In early July Scott McWilliam resigned as
CEO and I was asked by the board to step
in as Interim CEO. The Board is mindful that
arguably its most important duty is appointing
a successor. As we work with the Executive
Leadership Team to fine tune our strategic
direction the skills, behaviours and experience
required will become clear.
I would like to acknowledge the tremendous
contribution Scott has made to Resimac since
the merger of Homeloans in 2016. Scott served
as Co-CEO and CEO for both Homeloans and
Resimac Group; he navigated the company
through the difficult period of COVID-19, he
established the Asset Finance business and
oversaw significant growth in AUM. He has a left
a great legacy and I am sure everyone joins me
in thanking him and wishing him and his family
all the very best in their future endeavours.
Outlook
We recognise continued digital transformation is
of paramount importance to our business as we
train and develop our people to identify areas
for the application and adoption of technology.
We have plans to automate, expand and search
for synergies in FY25.
Our funders in both domestic and offshore
markets, our brokers, bankers and other
suppliers are all part of the engine to our
business, and we look forward to growing
together in FY25.
Thank you
Personally, I would like to thank each and every
one of our Resimac team for their commitment
to the company. I see the work they do each
day and appreciate the warmth and support
I have felt in this interim CEO role. I am also
grateful to the Board for their confidence in me
and willingness to share so generously their
expertise and guidance.
Susan Hansen
Interim CEO
Resimac was focused in FY24 on progressing
our strategic objectives in an economically
challenging environment. The Asset Finance
business was successful in achieving $1.1b
in AUM, up from $600m in FY23. Mortgage
originations were challenged in the first half of
the year, primarily due to intense competitive
pressures in the home loans market and led
to an overall decrease in AUM. Pleasingly we
saw an improved second half of the year and
Resimac is on track for an improved AUM
balance in FY25.
Positively, the dynamic LVR of our mortgage
book decreased to 61% and record low arrears
continued. With the growth in our Asset Finance
book and the relatively higher risk profile, we
increased our provision to be in line with the
industry. We are confident our estimated credit
losses remain conservative.
The normalised NPAT for FY24 was $43.1m, the
result $30.6m down on FY23. This is mostly
attributed to the fall in prime mortgage lending
amidst tough competition, with the reduced NIM
making a relatively small impact. This has led
Resimac to have a higher awareness of our risk
adjusted return on capital, becoming a greater
focus in our decision making.
The impact of inflation is profound. As our
business costs have increased, so has the cost
of living. This double-sided sword has led to
lower profits and thus less incentives to our
people. We have paid a fully franked dividend
of 7 cents per ordinary share, acknowledging
this is down relative to last year’s dividend of 8
cents. We are conscious it is never ideal to pay
stakeholders less, least of all in an environment
where costs are increasing.
Our strengthening cost discipline has led to
scrutiny of processes and priorities, and we
strive to improve our cost to income ratio in
FY25.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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Board of Directors.
Susan is a Chartered Accountant and holds a Bachelor of Commerce degree and
an MBA from University of Cape Town. Susan has over 40 years of experience
including a Big Four Accounting firm and an investment bank (financial analysis
and risk assessment). Susan is a graduate of the Australian Institute of Company
Directors. In July 2024 Susan was appointed as Interim CEO of Resimac.
Susan Hansen
Independent Non-Executive Director & Interim CEO
Wayne holds a Bachelor of Commerce and Law degree from The University of
Cape Town and a Masters of Science degree from Oxford University. Wayne
has over 30 years experience as a lawyer and over 15 years senior executive
experience in an international law firm. Wayne has extensive experience in
executive management and corporate governance at the Board level.
Wayne Spanner
Independent Non-Executive Director
Duncan is a Chartered Accountant and an experienced non-executive Director.
He is chairman of ICM Limited, an international fund manager. Duncan is a
fellow of the Institute of Chartered Accountants Australia and New Zealand, the
Australian Institute of Company Directors and the Financial Services Institute of
Australasia.
Duncan Saville
Non-Executive Director
Caroline is a non-executive Director and cross border advisor with over 30 years’
experience in regulated consumer sectors such as technology, retail and health.
Caroline brings to Resimac commercial and governance experience in many areas
including the deployment of technology and complex transactions. Caroline holds
an LLB Hons (London), and has been admitted to the Bars of England and Wales,
Malaysia, Australia and New Zealand.
Caroline Waldron
Independent Non-Executive Director
Warren is a former stockbroker and investment banker with over 35 years of
experience in domestic and international financial services. In addition, Warren
acts as an adviser in funds management and business strategy to companies
operating in the Asia Pacific region. Warren is the former Executive Chairman of
Resimac Limited.
Warren McLeland
Non-Executive Director & Chairman
FY24
highlights.
$43.1m
Normalised
NPAT
vs. FY23 $73.7m
$34.8m
Statutory
NPAT
vs. FY23 $66.5m
(Normalised NPAT)
Return on equity
10.4%
vs. FY23 18.6%
53.1%
(Normalised)
Cost to income ratio
vs. FY23 43.6%
$12.9b
Home Loan
AUM
vs. FY23 $13.1b
Asset Finance
AUM
$1.1b
vs. FY23 $0.6b
Home Loan
settlements
$4.3b
vs. FY23 $3.7b
Asset Finance
settlements
$0.8b
vs. FY23 $0.5b
7.0c
FY24 dividend
fully franked
vs. FY23 8.0c
2024 ANNUAL REPORT
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2024 ANNUAL REPORT
RESIMAC GROUP LTD
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Sustainability
report.
Stakeholder engagement and consultation.
Understanding the priorities and passions of our various stakeholders is crucial to ensure our ESG initiatives
are tailored to meet the expectations of our stakeholders. We engage with our stakeholders through the
following channels:
Customers:
Customer care services
Surveys
Social media
Business partners:
Surveys
Industry research
Face to face discussions /
presentations
Communities:
Volunteering
Partnerships
Fund raising / donations
Employees:
Engagement survey
ESG workshops
DEI committee
Our regulators:
Industry forums / briefings
Policy review and analysis
Regulatory meetings
Shareholders:
Investor meetings
Regular financial reporting
Market disclosures
Social media
This report should be read in conjunction with the Corporate Governance Statement located on Resimac’s website
resimac.com.au, and the Remuneration Report set out on pages 27 to 41 in this Annual Report.
At Resimac, we believe it is important that our people have ownership of our ESG initiatives. This is why we have a
people-run Environmental, Social and Governance Committee with representation from every team in the business
that reports to the CEO and Resimac Board.
Resimac’s Environmental, Social and Governance (ESG) purpose:
Our core values of respect, purposeful, opportunity and accountability form the foundation of our ESG purpose.
Incorporating core values into our ESG initiatives strengthens our commitment to responsible business practices,
sustainability, and positive social impact, driving us toward a more sustainable and equitable future.
Passion: We are committed to embedding sustainability across our organisation, driving positive action for
our people, customers, business partners, investors, shareholders, and the community.
Inclusion: Achieving meaningful change requires everyone’s contribution, no matter the size, to benefit our
communities, countries, and the global network.
Accountability: It is our responsibility to ensure that the services we deliver are ethical and sustainable.
2024 ANNUAL REPORT
Our ESG strategy supports our ability to achieve our overarching
business strategy in a manner that is sustainable and accountable.
Offerings
Delivering lending solutions that are diverse, flexible
and technology-enabled, with a service experience
that is continually improving and evolving to benefit
our customers and brokers.
People
Via our people, who cultivate a sense of purpose
in delivering better outcomes for customers and
for each other.
Chanels
Using efficient and effective distribution
to chosen segments, at scale.
Operating model
Supported by a fit-for-purpose and
technology-enabled operating model/s.
Capital
With access to sufficient, diversified
and efficient funding, and capital base.
Stakeholder value
Ultimately producing superior,
sustainable returns with a
'capital light' model.
| SUSTAINABILITY REPORT
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2024 ANNUAL REPORT
RESIMAC GROUP LTD
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| SUSTAINABILITY REPORT
| SUSTAINABILITY REPORT
The United Nations has
embraced 17 Sustainable
Development Goals
(SDGs), and Resimac
supports all of these
objectives.
In alignment with the
strategic direction set by
the Resimac Board and
management, our SDGs of
focus are:
Environmental.
We understand the importance of supporting the
environment. We are committed to this by partnering
with Carbon Positive Australia, which conducts and
funds biodiverse community reforestation projects to
assist with carbon setting.
For every settled loan, our customers have the
opportunity to select one of three community projects
that they would like to support on its Plant Trees
Australia funding platform. We then contribute to that
project on their behalf.
The projects are:
1. 'Pocket forest' in schools and communities
across Australia
This project funds compressed forests in schools
and community parks. For school children,
it offers multiple learning opportunities and
practical action against climate change.
2. Biodiversity and ecosystem restoration in VIC
and WA
These projects engage with rural and metro
communities across Victoria and Western
Australia to restore degraded land and increase
biodiversity in agricultural landscapes.
3. Regional and remote projects
Planting in partnership in regional and remote
communities to reforest previously cleared and
consequently degraded land. These projects
aim to restore the ecological function of the
local rainforests and connect remnant forests,
creating wildlife corridors where endangered and
threatened species can forage and nest.
Our focus.
Good health and well-being
As part of our commitment to promote good health
and well-being, we partner with Run Rocket Run, an
initiative focused on mental and physical resilience
through endurance running. All funds raised by Run
Rocket Run go to support Invictus Australia.
In addition, we partner with The Station, a not-
for-profit drop-in centre in Sydney that helps
adults having difficulty obtaining and sustaining
accommodation with a range of services, including
a warm meal for lunch and dinner every day of
the year. To assist The Station, we have a team
of volunteers who help with food service twice a week, with an annual
collection of personal and hygiene products for donation as well as running
good health and wellbeing initiatives such as City to Surf and STEPtember,
which drive donations for The Station.
Quality education
We believe quality education should be accessible to
everyone. In line with this SDG, we have connected
with the GO Foundation who support Aboriginal
and Torres Strait Islander students through their
scholarship program, promoting social inclusion
through the provision of essential items.
This year we provided the GO foundation with
a $10,000 donation to support the scholarship
program.
Moving forward, we look to deepen our connection
with the GO Foundation through a range of both financial and non-financial
support initiatives.
Climate action
Resimac is a proud partner of Carbon Positive
Australia and the Plant Trees Australia program. As
part of our loan settlements process, our customers
have an opportunity to select a community tree-
planting project they would like to support, and
we contribute funds to those projects on their
behalf. In FY24, Resimac customers contributed
towards the planting of over 100,000 trees evenly
split across the project choices of Urban Pocket
Forests, degraded land plantings, and tree planning
in regional and remote areas.
Under our previously held decade-long partnership with Carbon Conscious,
we planted over 46,000 trees, which offset nearly five thousand tonnes of
carbon from the Earth’s atmosphere over their lifetime.
Social.
As a leading non-bank lender, we embrace the social responsibilities that impact our diverse range of stakeholders,
including our customers, employees, investors, and the broader community. Our people are all passionate about
assisting and supporting the community by way of volunteering; donations; and educating and building awareness.
Some of the community initiatives we support are:
Food Ladder
Resimac is a proud sponsor of Food Ladder, a not-for-profit and global pioneer in the use of environmentally
sustainable technologies to create food and economic security for remote communities. Food Ladder not
only addresses food security, it also creates employment and training opportunities for adults, and education
outcomes for children. Food Ladder systems have benefited over 31,500 individuals, with 6,000 getting a
consistent, significant part of their diet from Food Ladder. Furthermore, it has created 600 jobs. In 2021
we funded our first co-branded hydroponic greenhouse in a Brisbane primary school, and since
then, we have funded another two greenhouse builds in Sydney and Adelaide, and with
another greenhouse build scheduled for Perth in October 2024.
In FY24,
Resimac
customers
contributed
towards
the planting
of over
100,000
trees.
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RESIMAC GROUP LTD
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| SUSTAINABILITY REPORT
RESIMAC GROUP LTD
This year we
supported
Sanctuary Housing
financially to help
create a tangible
difference
directly to the
women and
children in
crisis.
Sanctuary Housing
Sanctuary Housing is a women’s only shelter that provides
both emergency and medium-term housing for women
escaping domestic violence. It provides women in crisis
safety and comprehensive support, including meals,
toiletries, security, clothing, and essential links to mental
health and case management services. Sanctuary
Housing supports approximately 1,200 women each
year.
Our commitment to supporting families affected by
domestic violence was highlighted in last year's ESG
survey, where it was identified as the top priority by
our employees to receive social contributions.
We have introduced volunteer days with
Sanctuary Housing, providing a team of people to
help on the grounds to improve the facilities that
support families affected by domestic violence.
We plan to organise several volunteer days per
year at Sanctuary Housing, each championed by
a member of our ESG Committee.
Sanctuary Housing provides an incredible
service, this year we supported Sanctuary
Housing financially to help create a tangible
difference directly to the women and children in
crisis.
Our people.
We firmly believe that the success of our business is
propelled by the quality care our people provide to our
customers, business partners, and wider community.
To support this, we provide an array of employee
benefits, including study support, flexible work hours,
wellness programs, an employee assistance program,
salary continuance insurance, options for purchased
leave, a paid community day, and access to hybrid
working arrangements promoting a healthy work/life
balance.
Additionally, in a bid to foster an inclusive and
diverse workforce, we have a Women and Leadership
program. This initiative is dedicated to empowering
women within our organisation, cultivating their
professional growth, and supporting the development
of female leadership.
Looking ahead, we are dedicated to further expanding
our ESG financing capabilities, encompassing green
and sustainable funding initiatives, to meet the needs
of our customers and investors.
Philippines.
Resimac, via a hosting company, employs a team in
Manila. Each year, we partner with our Manila team to
support community-focused initiatives as part of their
outreach program. Over the past few years, we have
participated in a number of programs, including:
Dumagat Tribe in Tanay, Rizal Province: The
Resimac team donated school supplies, learning
materials, a printer, shirts, slippers, toiletries, a
fan and mattress.
Operation Smile: A foundation that helps those
born with a cleft palate. Our support allowed for
two missions and 189 patients to be screened
and treated.
San Lazaro Hospital in Manila: A public hospital
which specialises in infectious diseases. We
donated masks, face shields, PPE, surgical
gloves, and sanitiser.
Gentle Hands and St. Rita orphanages: Our
employees volunteered their time to visit
the orphanages, purchase food on behalf of
Resimac, provide educational materials, and
organised activities with the children.
Governance.
Resimac has a strong governance framework in place.
This ensures all regulatory obligations are adhered
to in line with our Australian Financial Services and
our Australian Credit Licence requirements, and as an
ASX-listed entity.
We have several committees, policies, and procedures
in place to complement this framework. These
committees include:
Risk & Compliance;
Audit;
Remuneration & Nominations;
Regulatory Review
Asset & Liability;
Credit;
Technology, Digital & Innovation;
Environmental, Social & Governance; and
Diversity, Equity & Inclusion.
The policies we have in place to uphold the ethical
conduct of our people include but are not limited to:
Code of Ethics;
Modern Slavery Statement;
Conflicts of Interest;
Securities Trading Policy;
Breach & Incident Policy & Reporting;
Anti-Bribery & Corruption Policy;
Anti-Money Laundering Program; and
Whistleblower Policy.
In addition, our people undergo regular training in
compliance, risk and cyber security to ensure we
remain vigilant against emerging threats that may be
detrimental to our business.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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Directors'
report.
Resimac Group Ltd
and its controlled entities
Information about the Directors
Names and particulars of the Directors of the
Company during or since the end of the financial year
are:
Mr Warren McLeland
Non-Executive Director and Chairman
since February 2020
Warren is a former stockbroker and investment banker
with over 35 years of experience in domestic and
international financial services. In addition, Warren
acts as an adviser in funds management and business
strategy to companies operating in the Asia Pacific
region. Warren is the former Executive Chair of
Resimac Limited.
Other listed Directorships (last three years):
• Non-executive Director of BNK Bank Limited (since
December 2023).
• Former Chair of Thorn Group Limited (removed
from ASX Official List in December 2023)
Special responsibilities:
• Chairman of Resimac Group Ltd (since February
2020).
• Chairman of the Risk and Compliance Committee
(since February 2017).
• Member of the Remuneration and Nomination
Committee (since November 2016).
• Member of the Audit Committee (since August
2017).
• Member of the Regulatory Review (since May
2024).
Ms Susan Hansen
Independent Non-Executive Director
from October 2016 to July 2024
and Executive Director since July 2024
Susan is a Chartered Accountant and holds a
Bachelor of Commerce degree and an MBA from
University of Cape Town. Susan has over 40 years
of experience including a Big Four Accounting firm
and an investment bank (financial analysis and risk
assessment). Susan is a graduate of the Australian
Institute of Company Directors. In July 2024 Susan
was appointed as Interim CEO of Resimac.
Other listed Directorships (last three years):
• Non-Executive Director of MoneyMe Limited
(since December 2023).
• Former non-Executive Director of Utilico Emerging
Markets Limited (resigned September 2023).
• Former non-Executive Director of Go2 People
Limited (resigned July 2022).
Special responsibilities:
• Interim Chief Executive Officer (since July 2024).
• Chair of the Audit Committee (November 2016 to
July 2024).
• Chair of Resimac NZ Home Loans Limited (since
May 2012).
• Member of the Remuneration and Nomination
Committee (since November 2016).
• Member of the Risk and Compliance Committee
(since November 2016).
• Member of the Technology, Digital and Innovation
Committee (since April 2021).
Mr Wayne Spanner
Independent Non-Executive Director
since February 2020
Wayne holds a Bachelor of Commerce and Law degree
from The University of Cape Town and a Masters of
Science degree from Oxford University. Wayne has
over 30 years experience as a lawyer and over 15
years senior executive experience in an international
law firm. He was previously the Managing Partner of
an international law firm in Australian from 2012 to
2020. Wayne has extensive experience in executive
management and corporate governance at the Board
level. He is also the independent chair of an Australian
law firm and a graduate of the Australian Institute of
Company Directors.
Other listed Directorships (last three years):
• Nil.
Special responsibilities:
• Chair of the Remuneration and Nomination
Committee (since February 2020).
• Chair of the Regulatory Review Committee (since
May 2024).
• Chair of the Audit Committee (since July 2024)
and member of the Audit Committee (July 2020 to
July 2024) .
• Member of the Risk and Compliance Committee
(since July 2020).
Mr Duncan Saville
Non-Executive Director
since November 2017
Duncan is a Chartered Accountant and an experienced
non-executive Director. He is chairman of ICM Limited,
an international fund manager. Duncan is a fellow of
the Institute of Chartered Accountants Australia and
New Zealand, the Australian Institute of Company
Directors and the Financial Services Institute of
Australasia.
Other listed Directorships (last three years):
• Non-executive Director of West Hamilton Holdings
Limited (since 2012).
• Non-executive Director of Somers Limited
incorporated in Bermuda (Since April 2024).
Special responsibilities:
• Member of the Technology Digital and Innovation
Committee (since April 2021).
Mrs Caroline Waldron
Independent Non-Executive Director
since November 2020
Caroline is a non-executive Director and cross border
advisor with over 30 years’ experience in regulated
consumer sectors such as technology, retail and
health. Caroline brings to Resimac commercial and
governance experience in many areas including the
deployment of technology and complex transactions.
Caroline holds an LLB Hons (London), and has been
admitted to the Bars of England and Wales, Malaysia,
Australia and New Zealand.
Other listed Directorships (last three years):
• Non-executive Director of Genetic Signatures
Limited (since May 2022)
• Former non-executive Chair of AMA Group Limited
(resigned June 2024)
Special responsibilities:
• Chair of the Technology, Digital and Innovation
Committee (since April 2021)
• Member of the Remuneration and Nomination
Committee (since January 2021)
• Member of the Risk and Compliance Committee
(since February 2022).
Company Secretary
Mr Peter Fitzpatrick
Since November 2016
Peter is a Chartered Accountant who joined Resimac
Limited in 1987 and is responsible for the Group’s
company secretarial function. He is a member of the
Governance Institute of Australia and the Financial
Services Institute of Australasia.
The abovenamed Directors and officer held office
during the financial year and since the end of the
financial year.
| DIRECTORS' REPORT
| DIRECTORS' REPORT
The Directors of Resimac Group Ltd (“Resimac” or “the Company”) and its controlled entities (“the Group”) submit
herewith the financial report for the financial year ended 30 June 2024. In order to comply with the provisions of
the Corporations Act 2001, the Directors’ Report is as follows:
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 21
20 |
Directors’ shareholdings
The following table sets out each Director’s relevant
interest in shares and rights of the company or in a
related body corporate as at the date of this report:
Director
Fully paid
ordinary shares
Number of
rights over
ordinary shares
Warren McLeland
12,130,165
Nil
Susan Hansen
212,738
Nil
Wayne Spanner
15,732
Nil
Duncan Saville
254,586,353
Nil
Caroline Waldron
Nil
Nil
Remuneration of Key Management
Personnel
Information about the remuneration of Key
Management Personnel (KMP) is set out in the
Remuneration Report section of this Directors’ Report.
The term ‘KMP’ refers to those persons having
authority and responsibility for planning, directing
and controlling the activities of the Company and its
controlled entities or indirectly, including any Director
whether executive or otherwise of the consolidated
entity.
Share options or rights granted to
Directors and senior management
An aggregate of 1,306,730 shares were granted/
exercised:
• 226,730 shares granted under the Employee Share
Plan on 10 October 2023; and
• 1,080,000 options exercised by senior
management on 31 August 2023, 30 October
2023, 7 June 2024 and 20 June 2024 in relation to
the FY20 Long Term Incentive Plan.
Further details included in the Remuneration report.
Board
meetings
Audit
Risk and
compliance
Remuneration
and
nomination
Technology,
digital and
innovation
Regulatory
review
Director
(A)
(B)
(A)
(B)
(A)
(B)
(A)
(B)
(A)
(B)
(A)
(B)
Warren McLeland
11
11
3
3
5
5
5
5
-
-
2
2
Susan Hansen
11
11
3
3
5
5
5
5
4
4
-
-
Wayne Spanner
11
11
3
3
5
5
5
5
-
-
2
2
Duncan Saville
11
11
-
-
-
-
-
-
4
4
-
-
Caroline Waldron
11
11
-
-
5
5
5
5
4
4
-
-
COMMITTEES
(A) Number of meetings eligible to attend.
(B) Number of meetings attended.
Results and dividends
The information appearing on pages 21 to 26 forms part of the Directors’ Report for the financial year ended 30
June 2024 and is to be read in conjunction with the following information:
FY24
FY23
Profit
$’000
$’000
Profit attributable to ordinary equity holders of the parent
34,590
66,446
Dividends
The following dividends have been paid by the Company or declared by the Directors since the commencement of
the financial year ended 30 June 2024:
(a) out of the profits for the year ended 30 June 2023 and retained earnings on the
fully-paid ordinary shares:
• fully-franked final dividend of 4.00 cents (FY22: 4.00 cents) per share paid on
20 September 2023.
16,0271
16,1161
(b) out of the profits for the half-year ended 31 December 2023 and retained
earnings on the fully-paid ordinary shares:
• fully-franked interim dividend of 3.50 cents (HY23: 4.00 cents) per share paid
on 19 March 2024.
14,0742
16,0572
(c) out of the profits for the full year ended 30 June 2024 and retained earnings on
the fully-paid ordinary shares:
• fully-franked final dividend of 3.50 cents (FY23: 4.00 cents) per share
declared on 28 August 2024.
14,000
16,065
1 The final FY23 dividend paid is net of: $72,466 (final FY22: $122,286) dividend paid to treasury shares held by the Group, eliminated on
consolidation and dividend paid in relation to non-controlling interest of $34,300 .
2 The interim FY24 dividend paid is net of: $33,062 (interim FY24: $110,864) dividend paid to treasury shares held by the Group, eliminated on
consolidation and dividend paid in relation to non-controlling interest of $107,114.
| DIRECTORS' REPORT
| DIRECTORS' REPORT
Directors’ meetings
The following table sets out the number of Directors’ meetings (including meetings of committees of Directors)
held during the financial year and the number of meetings attended by each Director (while they were a Director or
committee member).
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 23
22 |
Operating and Financial Review
Operational overview and strategy
Resimac Group Ltd ('Resimac Group') is a leading non-
bank lender and multi-channel distribution business.
The fully integrated business model comprises
originating, servicing and funding prime, non-
conforming residential mortgages and asset finance
products in Australia and New Zealand.
The Resimac Group has a proven track record of
growth and stability which dates to 1985 when
operations commenced. Today, the Group is proud to
have serviced over 55,000 customers with a portfolio
of home loans on balance sheet of $13 billion, an
asset finance portfolio of over $1 billion, and total
Assets Under Management (AUM) of over $14 billion.
As a pioneer of the Residential Mortgage-Backed
Securities ('RMBS') industry, the Group has one of
Australia’s most respected securitisation programs,
having issued in excess of $45 billion in domestic and
global markets since 1987. The Resimac Group has
access to a diversified funding platform with multiple
warehouse lines provided by domestic and offshore
banks for short-term funding in addition to a global
securitisation program to fund its assets longer term.
The Group’s flexible global capital markets
programme, enables the Group to provide lending
solutions to a wide range of customers including the
self-employed and contractors, as well as customers
with previous credit impairments through a network of
over 12,000 broker partners.
The Group recognises that our people are its greatest
asset, and the core values of Respect, Purposeful,
Opportunity and Accountability, guide our people’s
efforts, define our culture, shape the way we
approach development and change, whilst pursuing
ambitious goals.
Principal activities
The Group’s principal activity is the provision of
residential mortgage and asset finance lending
products, distributed through various channels in
Australia and New Zealand. In June 2024, the Group
announced it would cease originating new business
from 1 July 2024 in New Zealand, with the Group fully
committed to servicing its existing customers in that
jurisdiction.
The core activities of the Group focus on originating
and servicing a high-quality loan portfolio which is
supported by a global funding program and high
calibre team.
The Group continues to focus on strengthening its
core capabilities which include:
• Lending products: Leveraging the Group’s
deep understanding of the Australian market to
offer products that address consumer and SME
customer demands, with attractive risk and return
profiles;
• Distribution: Distributing loans through
partnerships with accredited brokers and
wholesale channels, ensuring effective reach and
market presence;
• Treasury and funding expertise: Maintaining
strong, long-term relationships with onshore and
offshore banking and funding partners provides
the Group a diversified funding model. The Group
has extensive experience in issuing securities in
global and domestic term securitisation markets,
bolstering the Group’s financial position; and
• Risk management: Operating a comprehensive
enterprise risk management and governance
framework, following the three lines of defence
model. This enables the Group to proactively
identify, assess, and mitigate risks, safeguarding
the interests of all stakeholders.
Principal risks
The Group’s key risks include but are not limited to:
• Credit risk: The Group is in the business of taking
credit risk through the offering of lending products
to its customers in the form of home loans and
asset financing. The Group manages this risk
by undertaking thorough credit underwriting
processes whilst originating loans that are backed
by high quality collateral including residential
property, automotive vehicles and equipment;
• Funding risk: The Group relies on a mix of
warehouse facilities, securitisation trusts, and
corporate debt to fund mortgage originations;
• Capital and liquidity requirements: To meet
the Australian Financial Services Licence
requirements, the Group must maintain sufficient
liquidity levels. There's a potential risk of needing
to provide additional 'first loss' equity capital to
support senior ranking note holders, impacting
profitability, growth, and potentially requiring
raising additional capital;
• Cybersecurity risk: The Group leverages the NIST
Cybersecurity Framework to effectively manage
cybersecurity risk. The framework’s five core
functions support in identifying critical assets,
protecting them with appropriate safeguards,
detecting potential threats, responding effectively
to incidents, and recovering swiftly to minimise
business impact;
• Regulatory and licence compliance: Operating
in highly regulated markets, changes in laws or
regulations could significantly impact the Group's
business. Possessing multiple Australian Credit
Licences, any alterations to licensing regimes,
license revocations, or failure to obtain necessary
licenses could have a material adverse effect on
the Group's business, operational, and financial
performance;
• Macroeconomic factors: An economic downturn
leading to materially higher unemployment could
lead to customer difficulty in maintaining loan
serviceability, posing credit risk;
• Interest rates: RBA cash rate increases have
materially increased loan servicing for customers.
Increased loan repayments combined with the
higher cost of living from inflationary pressures,
have impacted our customers as evidenced with
arrears increasing during the year;
• Climate and extreme weather events: Australia
has a track record of extreme events including
bushfires and floods, which could impact the
underlying security of our loans and advances
where customers are impacted by these events.
Business strategy
The Group is focused on pursuing several growth
strategies that focus on the appropriate deployment
of capital to improved revenue, profitability and
provide value accretion to shareholders.
1. Organic lending growth
The Group remains well-positioned to grow AUM
volume driven by:
• Customers favourably viewing the Group as an
alternative to the major lenders;
• Opportunity to grow volume in the Specialist and
Prime segments of the residential mortgages
market;
• Opportunity to grow volume in the asset finance
segment under the Resimac Asset Finance brand
and materially scale this segment over the next 3
years;
• Continued deployment of the digital customer
banking environment; and
• Continued investment in modernising core banking
platforms to optimise loan servicing capabilities
and operational efficiency.
2. Growth through acquisition
The Group continues to evaluate merger & acquisition
(M&A) opportunities that will provide sustainable value
growth for shareholders, particularly in the home loans
and asset finance segments.
During the period and up to the date of this report, the
Group executed the following M&A transactions:
• On 20 June 2023, the Group entered into a sale
and purchase deed with Thorn Australia Pty
Limited and Thornmoney Pty Limited (collectively
“Thorn”) in relation to the acquisition of Thorn’s
asset finance portfolio with AUM of $134 million.
This transaction was completed on 1 September
2023. Thorn and Resimac are related entities with
common Shareholders and Directors; and
• On 25 January 2024, the Group entered into a sale
and purchase agreement to acquire the remaining
49% shares in 23 Degrees Capital Partners Pty
Ltd (operating as Sonder). On 1 July 2024, the
transaction was completed with the Group’s
interest in Sonder increasing from 51% to 100%.
Sonder is a commercial asset finance wholesaler.
3. Debt funding
The Group maintains access to a diversified
funding platform supported by established funding
relationships and the Board approved funding
strategy.
The following funding channels are used to support
the Group’s lending activities and pursuit of its growth
strategy:
• Corporate debt facility & NIM bond: Utilised for
investment in business growth;
• Securitisation trusts: Loans that are initially
funded via a warehouse facility, are pooled and
refinanced by being sold to new funding Special
Purpose Vehicles (SPV) that issue limited-recourse
independently rated Bonds, such as RMBS and
Asset-Backed Securities (ABS) to institutional
investors in multiple jurisdictions; and
| DIRECTORS' REPORT
| DIRECTORS' REPORT
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 25
24 |
| DIRECTORS' REPORT
| DIRECTORS' REPORT
• Warehouse facilities: Third-party funders provide
limited-recourse financing to SPVs established
by the Group. At 30 June 2024, the Group had
two domestic and eight foreign offshore bank
warehouse providers.
Review of operations
The Group successfully realised its strategic growth
objectives for 2024, restoring home loans AUM to
levels comparable to those as of 30 June 2023.
The challenging market environment in FY22/FY23
comprised of twelve consecutive cash rate increases
coupled with intense competition for home loans
market share. This had a cascading effect on FY24
profitability, leading to NIM compression and a $1.8
billion reduction in average home loans AUM. In FY24,
the Group responded through pricing initiatives to
recoup home loans AUM and provided investment
for growth in the asset finance portfolio. A review
of capital and operational expense management
is underway, setting the stage for sustainable
profitability growth in the future. The Group maintains
sufficient capital and funding for meaningful AUM
growth across both the home loans and asset finance
portfolios.
Whilst prevailing economic conditions are mostly
benign, the Group is planning for a deteriorating
environment. The combination of heightened interest
rates and ongoing inflation exerts additional pressure
on living costs, which has led to an increase in both
arrears and requests for financial hardship assistance
in the wider Australian context.
To support customers dealing with financial
challenges, the Group is committed to an enhanced
program, aligning with the recommendations arising
from the Hardship Review conducted by the Australian
Securities and Investments Commission (ASIC). This
was a review by ASIC of the end-to-end policies,
processes and practices of 10 large lenders (which
included the Group) in responding to home loan
customers experiencing financial hardship.
Asset Finance
The Group has reported its asset finance operation
as a separate operational segment for the first time.
As of 30 June 2024, the Group's asset finance AUM
surpassed $1.1 billion, an increase of $487 million
(75%) compared to the previous year. Management
recognises that the risk and reward profile of the
asset finance portfolio diverges noticeably from the
home loans segment. The underlying collateral for
asset finance depreciates over time and, unlike real
estate, is relocatable which raises risks of loss or
theft. These specific characteristics pose unique
challenges for the Group in areas like collections,
recoveries, and the aggregate loss experience when
contrasted with the home loans segment. The total
loss experience tied to the asset finance portfolio
is substantially greater than that of the home loans
portfolio managed by the Group.
Management acknowledges that the asset finance
portfolio is comprised of several products which have
varying risk profiles associated with them. These
include:
• Secured business lending: Short term loans (12-
15 months) which are larger in deal size. Loans
are secured by residential property resulting in
a lower risk profile, loss and credit performance
align more closely with mortgage lending due to
the collateral.
• Commercial lending: Consists of Auto &
Equipment Finance loans which are smaller in deal
size and have longer terms with predominantly
fixed rate contracts. These loans carry a higher
degree of risk.
Given the relative short history, management have
also considered anticipated industry loss experience
as well as the Group’s observed data when adjusting
collective provisioning for the asset finance portfolio.
At the end of June 2024, this realignment meant that
the Group increased its collective provision for losses
to 86 basis points (compared to 42 basis points as of
30 June 2023), resulting in a $6.8 million increased
provision in the Group’s FY24 net profit after tax
(NPAT).
Home Loans
Throughout the opening quarter of 2024, major
lenders competed fiercely with cash back offers and
attractive rates, supported by the Reserve Bank of
Australia's (RBA) Term Funding Facility (TFF), which
expired for ADIs in September 2023 and June 2024
in respective tranches. As the TFF ended, lender
competition eased and the competition among leading
lenders started to wane, paving the way for the Group
to regather momentum in the home loans market.
Since November 2023, AUM has increased for eight
consecutive months. As of 30 June 2024, home loans
AUM exceeded $12.9 billion, down $242 million (2%)
from the previous year.
In line with continuous business oversight and a
strategic review, the Board decided to halt new loan
originations in New Zealand from 1 July 2024, whilst
maintaining full support for existing customers.
The Directors and Management determined that
business activities within New Zealand did not
generate the expected return on capital, and future
growth opportunities were limited given the subdued
economic outlook in that market.
In respect of credit loss provisioning, the Group
remains well covered, with high levels of collective
provision coverage for home loans segment.
Management reviewed key assumptions during the
provisioning process, resulting in the decision to
reduce model risk overlay from 20% to 10%, which
released $3.4 million from the collective provision
balance, and to adjust the Loss Given Default
assumption to factor in the Group’s observed data,
which decreased the provisioning coverage by 5bps.
Given the model's demonstrated effectiveness in
recent years, the level of model risk has reduced.
Following this adjustment, Management remains
confident that the Group has adequately provided for
future credit losses, considering current arrears levels
and potential economic downturns.
Although the Group’s arrears and hardship levels
have increased compared to prior period, they
remain stable relative to other market participants.
The increase in arrears levels in asset finance are
consistent with anticipated market conditions and the
seasoning of the portfolio.
Financial performance
The Group generated a statutory NPAT of $34,791,000
for the year ended 30 June 2024. To reflect the
Group’s normalised earnings the NPAT has been
adjusted to remove non-recurring costs and one-off
gains/losses. Management believe the disclosure of
the normalised NPAT provides additional insight into
the underlying performance for the year, by excluding
one off, non-recurring or non-core items.
In FY24, the Group revised its accounting treatment
of ongoing trail commission payable to mortgage
brokers. The Group has recognised a liability in
the balance sheet equal to the present value of
expected future trail commission payments, and a
corresponding increase in capitalised brokerage costs/
transactions costs within Loans and Advances. This
change in policy has no material net impact to NPAT.
The following table reconciles the unaudited
normalised earnings to the statutory NPAT for the year
in accordance with International Financial Reporting
Standards (IFRS).
FY24
Unaudited non-IFRS information
$’000
Statutory NPAT
34,791
Dividend income from listed equity
investment
(377)
Operating segment restructuring cost
458
Tax effect of normalised items
(15)
Normalised NPAT
34,857
FY24 normalised NPAT excluding fair value gains/
losses on derivatives (net of tax) is $43,078,000.
Net interest income of $159,590,000 decreased 28%
on prior year driven by the decrease in the Group’s
average assets under management compounded by
margin compression.
Operating expenses of $81,101,000 decreased 3% on
prior year driven by lower marketing spend.
Loan impairment expense increased 418% to
$11,602,000 primarily due to the growing asset
finance portfolio and an alignment of the collective
provision to anticipated industry loss experience,
partly offset by release of the home loans model risk
overlay.
Group’s total loan settlements were $5.1 billion, up 21%
on prior year. Settlements were impacted by 8 months
of consecutive growth in AUM under management
since November 2023.
The Group’s assets under management at 30 June
2024 comprise:
• On balance sheet home loans and advances to
customers of $12.9 billion, down 2% compared to
30 June 2023;
• On balance sheet asset finance loans of $1.1
billion, up 75% compared to 30 June 2023 due
to business growth and acquisition of the Thorn
portfolio;
• Off balance sheet portfolio of $0.6 billion, down
22% compared to 30 June 2023 in line with the
Group’s strategy to cease originating white label
loans;
• Combined these make up the total assets under
management of $14.6 billion.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 27
26 |
Funding programmes
During the year ended 30 June 2024, AUD $3.8 billion
(equivalent) of new RMBS and AUD $350 million
of new ABS were issued to facilitate AUM growth,
optimise term duration and funding costs.
The Group maintains sufficient cash and working
capital reserves, including cash deposits, a committed
revolving corporate facility and liquid investments,
in order to meet its expense and proprietary funding
obligations.
Indemnification of officers and auditors
During the financial year, the Company paid a premium
to a related party in respect of a contract insuring the
Directors of the Company, the Company Secretary
and all executive officers of the Company against
a liability incurred as such a Director, Secretary or
executive officer to the extent permitted by the
Corporations Act 2001. The contract of insurance
prohibits disclosure of the nature of the liability and
the amount of the premium.
The Company has not otherwise, during or since
the financial year, except to the extent permitted by
law, indemnified or agreed to indemnify an officer or
auditor of the Company against a liability incurred.
Subsequent events
Acquisition of shares in
23 Degrees Capital Partners Pty Ltd
On 1 July 2024 Resimac completed the acquisition
of the remaining 49% shares in 23 Degrees Capital
Partners Pty Ltd (operating as Sonder), which
increased Resimac’s interest in 23 Degrees Capital
Partners Pty Ltd from 51% to 100%.
Resignation of Chief Executive Officer
On 9 July 2024, Mr. Scott McWilliam resigned from
his role as the Chief Executive Officer of Resimac. Mr.
Scott McWilliam has taken a period of leave before
his employment contract ends on 1 September 2024.
Non-Executive Director, Ms Susan Hansen, has been
appointed as interim CEO until a permanent CEO is
appointed.
Final dividend declared
The Board of Resimac Group Ltd has declared a fully
franked final dividend of $0.035 per share. The record
date will be 6 September 2024. The payment date will
be 20 September 2024. The dividend has not been
provided for in this financial report.
Non-audit services
Details of amounts paid or payable to the auditor for
non-audit services provided during the year by the
auditor are outlined in Note 28 to the financial report.
The Directors are satisfied that the provision
of non-audit services during the year, by the
auditor is compatible with the general standard
of independence for auditors imposed by the
Corporations Act 2001.
The Directors are of the opinion that the services as
disclosed in Note 28 to the financial report do not
compromise the external auditor’s independence,
based on advice received from the Audit Committee,
for the following reasons:
• All non-audit services have been reviewed and
approved to ensure that they do not impact the
integrity and objectivity of the auditors; and
• None of the services undermine the general
principles as set out in APES Code of Ethics
for Professional Accountants issued by the
Accounting Professional and Ethical Standards
Board, including reviewing or auditing the auditor’s
own work, acting in a management or decision
making capacity for the Company, acting as
advocate for the Company or jointly sharing
economic risks and rewards.
Auditor’s independence declaration
The auditor’s independence declaration is included on
page 130 of this financial report.
Rounding off amounts
Unless otherwise indicated, the Company has
rounded off amounts in this Directors’ Report and
the accompanying financial statements to the
nearest thousand dollars in accordance with ASIC
Corporations Instrument 2016/191.
Significant changes in the state of affairs
In the opinion of the Directors, there have been no
significant changes in the state of affairs of the Group
during the year, except as otherwise noted in this
report.
Remuneration.
Remuneration.
Remuneration
report.
2024
(Audited)
Contents
1
Summary
28
2
Remuneration objectives, strategy and principles
28
3
Key management personnel
29
4
KMP remuneration approach (excl. Non-Executive Directors)
30
5
Short-term and long-term incentive plans
30
6
Overview of company performance
33
7
Statutory remuneration
34
8
Non-Executive Director remuneration
36
9
Other remuneration information
38
| DIRECTORS' REPORT
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 29
28 |
1. Summary
This Remuneration Report provides shareholders
with an overview of Resimac Group’s (the Group)
remuneration strategy and framework that applies to
the Group’s Key Management Personnel (KMP) for the
year ended 30 June 2024.
Resimac’s vision is to be a customer focused
company, making home ownership, financial freedom
and business success more accessible to everyone
by leveraging technology and data driven insights.
This vision is facilitated by promoting a culture of
transparency that is diverse, inclusive and impactful
and by a remuneration framework that provides
positive outcomes for our customers, shareholders
and employees.
2. Remuneration objectives, strategy and
principles
At Resimac, we recognise our people are our greatest
asset. The Group’s commitment is to reward its people
with a level of remuneration and benefits that is
commensurate with their individual responsibilities
and position within the business, recognising that an
engaged workforce is a requisite for the achievement
of Resimac’s strategic objectives.
We seek to create a link between our people’s
remuneration, performance, organisational
performance and organisational values.
The Board’s remuneration strategy is aligned to the
following objectives:
• To attract, motivate and retain high calibre
employees;
• To provide fair and equitable remuneration to all
employees in line with the Group’s Diversity, Equity
& Inclusion Policy;
• To promote and reward behaviours within the
business that are in the interest of all stakeholders
which includes customers and shareholders;
• To align effective risk management and
demonstration of appropriate behaviours, values
and ethics;
• To reinforce a culture of continuous employee
growth and knowledge; and
• To ensure the Group’s Governance framework
operates within industry best practice.
The following principles provide the basis of the
remuneration framework at Resimac:
• Resimac remunerates its employees in a manner
that is market competitive whilst being acceptable
to its shareholders;
• Total remuneration for KMP is achieved by a
balance of fixed and variable components;
• Key Performance measures for Resimac
management are linked to both financial and non-
financial measures, and designed to be in the best
interest of all stakeholders including customers
and shareholders;
• Fixed and variable remuneration for KMP are
periodically benchmarked to ensure remuneration
is in line with the external market; and
• Pay parity is paramount. Fair and equitable
remuneration is applied to all employees
regardless of gender, sexual identity, age, religion,
ethnicity or disability.
| REMUNERATION REPORT
3. Key Management Personnel
The KMP are the people who have the authority and responsibility for planning, directing, implementing and
controlling the activities of the Resimac business. The KMP are:
Name
Position
Term as KMP
Current
Scott McWilliam
Chief Executive Officer (CEO)
Full Term
Andrew Marsden
Chief Treasury Officer (CTO)
Full Term
Majid Muhammad
Chief Information Officer (CIO)
Full Term
Pete Lirantzis
Chief Strategy & Innovation Officer (CSIO)
Appointed w.e.f. 12 February 2024
James Spurway
Chief Financial Officer (CFO)
Appointed w.e.f. 1 May 2024
Jason Azzopardi
Chief Financial Officer (CFO)
Resigned w.e.f. 12 January 2024
The Directors classified as KMP and required to be disclosed as part of this report are:
Name
Position
Term as KMP
Current
Warren McLeland
Chairman, Non-Executive Director
Full Term
Susan Hansen
Independent Non-Executive Director
Full Term
Duncan Saville
Non-Executive Director
Full Term
Wayne Spanner
Independent Non-Executive Director
Full Term
Caroline Waldron
Independent Non-Executive Director
Full Term
On 9 July 2024, Mr. Scott McWilliam resigned from his role as the Chief Executive Officer of Resimac. Mr. Scott
McWilliam has taken a period of leave before his employment contract ends on 1 September 2024. Non-Executive
Director, Ms Susan Hansen, has been appointed as interim CEO until a permanent CEO is appointed.
| REMUNERATION REPORT
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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4. KMP remuneration approach (excl. Non-
Executive Directors)
The Board views the remuneration outcomes as being
aligned to stakeholder interest, business performance
and individual performance against KPIs and strategic
goals. The Board’s Remuneration & Nomination
Committee assist with reviewing and recommending
remuneration arrangements for KMP that is both
consistent and competitive within the market. The
total remuneration of the KMP comprise a fixed
component and an at-risk variable component.
Remuneration is based on:
• role in which the person is performing (i.e.
accountability, responsibility, qualifications, skills
and experience required);
• market benchmarking;
• performance against set Key Performance
Indicators (KPIs);
• achievement of performance hurdles which
includes tenure;
• regulatory compliance; and
• company performance.
4.1. KMP fixed remuneration (excl. Non-Executive
Directors)
The fixed component of the KMP remuneration
includes base salary plus any other fixed elements
such as superannuation, salary sacrifice and benefits
and is known as Total Fixed Remuneration (TFR).
Annually the TFR for the role in which the KMPs
are performing is considered by the Remuneration
and Nomination Committee which then makes final
recommendations to the Board.
4.2. KMP variable remuneration framework (excl.
Non-Executive Directors)
Variable remuneration is a means to provide at-
risk remuneration to reward executives for their
performance against set criteria. The objectives and
criteria are designed to align with near term, mid term
and long term strategy, ensuring value creation for
shareholders.
5. Short-term and long-term
incentive plans
5.1. Short-term incentive plan (STI Plan)
Chief Executive Officer STI Plan and KPI metrics
CEO, Scott McWilliam is eligible for a STI up to a cap
of 100% of his TFR. CEO’s performance is assessed
against predetermined KPIs by the Remuneration
and Nomination Committee at the end of each
performance period. Any STI awarded is paid in cash;
66.7% at the end of the performance period with
the remaining 33.3% in cash deferred for 12 months
subject to a look back being undertaken by the
Remuneration and Nominations Committee.
CEO KPI components for FY24 are:
• Financial Performance: Cost Management, Interest
Margin Management, Asset Finance settlement
growth, Asset Under Management, Arrears rates;
• Technology & Digital Strategy: Infrastructure and
application technologies;
• Market Opportunities;
• Regulatory obligations; and
• Leadership, People & Culture.
KMP STI Plan and KPI metrics
The performance of KMPs is measured against
predetermined KPIs assessed by the CEO at the end
of each performance period and the Remuneration
and Nomination Committee are responsible for
reviewing and approving any awarded STI which will
be paid 100% in cash at the end of the performance
period (i.e. 1 July to 30 June). KPIs and relevant
measurements will be set at the commencement of
the performance period.
KMPs participate in the annual STI plan whereby
they have an opportunity to earn a percentage of
their TFR. The performance of KMPs is measured
against predetermined KPIs set by the CEO at the
commencement of the performance period. The
Remuneration & Nominations Committee measures
KMP performance against the set KPI objectives
and approves any STI awarded at the end of each
performance period. The amount of an STI award
will depend on whether and to what extent those
objectives are achieved. The STI assessment is
undertaken in July of each year and any award is
payable in September of the same year.
| REMUNERATION REPORT
| REMUNERATION REPORT
KPIs include:
• Corporate strategy initiatives;
• Financial metrics including NPAT growth,
cost to income ratio and demonstrated
innovative cost initiatives;
• Innovation and technology initiatives and
enhancements to allow for simplification,
scale and digitalisation;
• Operational efficiency and effectiveness;
• People, strategic leadership and culture;
• Environmental, Social and Governance
(ESG); and
• Governance through Resimac’s Risk and
Compliance frameworks which focuses
on adherence to obligations, reduction
of customer complaints, incidents and
breaches.
5.2. Long-term incentive plan (LTI Plan)
FY20 LTI Plan: KMPs and Executives
In 2019 the Board established a LTI Plan for the
CEO, KMPs and eligible executives pursuant to
the Resimac Group Ltd Employee Share Option
& Rights Plan Rules. The CEO, KMPs and
eligible executives were offered options over
ordinary shares, and a combined total cash
component of up to $2,400,000. 3,900,000
options were granted on 15 August 2019
(900,000 allocated to the CEO and 375,000 for
each eligible executive).
All options vested on 31 August 2022 after the
Group achieved the following conditions:
• Net Profit After Tax (NPAT) growth hurdles;
• Digital transformation;
• Compliance hurdles; and
• Participant remaining employed with the
Group until the vesting date.
The vested options are required to be
exercised no later than 30 June 2025.
Cash component of $1,710,000 was paid in
FY23. 1,080,000 and 785,000 options were
exercised in FY24 and FY23, respectively.
The Remuneration and Nomination Committee
are in the process of designing a new LTI Plan
for the KMPs and Executives. This new LTI Plan
will come into effect in FY25.
The graphs below set out the relative mix of
TFR and STI:
| 31
TFR
STI
92%
8%
OTHER
KMP
TFR
STI
CEO
75%
25%
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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32 |
The table below provides the details of options issued under the Long-Term Incentive Plan:
1 $243,750 was paid by Jason Azzopardi for the exercise of 375,000 options on 31 August 2023, $243,750 was paid by an executive for the exercise of 375,000 options on 30 October 2023 and
$214,500 was paid by Danielle Corcoran (resigned w.e.f. 6 April 2023) for the exercise of 330,000 options on 7 June 2024 and 20 June 2024.
| REMUNERATION REPORT
| REMUNERATION REPORT
Number of
options
Tranche
Grant
date
Fair value
at grant
date ($)
Exercise
price of
option ($)
Vesting
date
Expiry
date
Options
forfeited/
exercised
prior to
1/7/2023
Number
of options
held at
1/7/2023
Options
exercised
during
the year
Number
of options
held at
30/6/2024
Number
of options
vested at
30/6/2024
Number
of options
unvested at
30/6/2024
CEO
300,000
Tranche 1
15/8/2019
0.20
0.65
31/8/2022
30/6/2025
-
300,000
-
300,000
300,000
-
CEO
300,000
Tranche 2
15/8/2019
0.20
0.65
31/8/2022
30/6/2025
-
300,000
-
300,000
300,000
-
CEO
300,000
Tranche 3
15/8/2019
0.20
0.65
31/8/2022
30/6/2025
-
300,000
-
300,000
300,000
-
Other KMPs
1,000,000
Tranche 1
15/8/2019
0.20
0.65
31/8/2022
30/6/2025
(125,000)
590,000
(340,000)1
250,000
250,000
-
Other KMPs
1,000,000
Tranche 2
15/8/2019
0.20
0.65
31/8/2022
30/6/2025
(125,000)
625,000
(375,000)1
250,000
250,000
-
Other KMPs
1,000,000
Tranche 3
15/8/2019
0.20
0.65
31/8/2022
30/6/2025
(125,000)
625,000
(365,000)1
260,000
260,000
-
3,900,000
(375,000)
2,740,000
(1,080,000)
1,660,000
1,660,000
-
Granted to
6. Overview of company performance
The table below summarises details of Resimac’s performance for key financial measures over the past four
financial years. Note the Group undertook a buyback programme and cancelled 1,622,340 shares in FY24 (FY23:
5,290,163 shares).
FY24
FY23
FY22
FY21
FY20
Financial year ended 30 June
Statutory NPAT ($’000)1
34,590
66,446
102,147
107,557
55,908
Total dividends per share (cents)2
7.50
8.00
8.00
4.20
2.70
Dividend payout ratio (%)2
87.0
48.4
32.0
15.9
19.6
Basic earnings per share (cents)
8.65
16.52
25.05
26.37
13.75
Return on equity (ROE) (%)3
8.3
16.4
29.9
36.9
25.5
Return on assets (%)4
2.3
4.4
6.1
7.3
4.3
Share price at 30 June ($)
0.86
0.92
1.15
2.46
1.01
1 NPAT excludes non-controlling interest (FY24: 201k, FY23: 13k)
2 Dividends per share and dividend payout ratio are calculated on dividends paid during the financial year
3 ROE based on normalised NPAT and average shareholders’ equity per consolidated statement of financial position
4 ROA based on statutory NPAT and total assets. As a result of the requirement under AASB 10 Consolidated Financial Statements, the parent
company exercises control over the Special Purpose Vehicles (SPVs) and securitisation trusts, therefore significant assets have been added to the
consolidated statement of financial position without any appreciable increase in net profit.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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7. Statutory remuneration
The table set out below provides a summary of the actual remuneration awarded to KMP in respect of the full year ended 30 June 2024.
1 Superannuation concessional contributions cap was subject to $27,500
2 Long-term benefits relate to long service leave accrued during the year.
3 Termination benefits reflect annual leave entitlements paid on termination.
4 Share based payment expense related to cash component of the FY20 LTI Plan paid to KMP during FY23
5 The percentage performance related column is the STI divided by the total remuneration, reflecting the actual percentage of remuneration at risk for the year.
6 James Spurway was appointed with effect from 1 May 2024.
| REMUNERATION REPORT
| REMUNERATION REPORT
Current KMP
Salary
($)
STI awarded
($)
Non-monetary
benefits
($)
Superannuation1
($)
Leave2
($)
Termination
benefits3
($)
Option rights
($)
($)
Percentage
performance
related5 (%)
Percentage
rights related
(%)
Scott McWillian
FY24
647,500
220,000
-
27,500
19,183
-
-
914,183
24.1
0.0
FY23
622,500
357,500
-
27,500
10,375
-
168,750
1,186,625
30.1
14.2
SHORT-TERM BENEFITS
POST-
EMPLOYMENT
BENEFITS
LONG-TERM
BENEFITS
SHARE-BASED
PAYMENTS4
TOTAL
Andrew Marsden
FY24
354,288
60,000
10,000
27,500
9,749
-
-
461,537
13.0
0.0
FY23
364,592
110,000
10,000
27,500
10,082
-
67,500
589,674
18.7
11.4
James Spurway6
FY24
66,250
-
-
4,583
1,104
-
-
71,937
0.0
0.0
FY23
-
-
-
-
-
-
-
-
0.0
0.0
Majid Muhammad
FY24
412,500
60,000
-
27,500
8,784
-
-
508,784
11.8
0.0
FY23
386,500
140,000
-
27,500
7,765
-
67,500
629,265
22.2
10.7
7 Pete Lirantzis was appointed with effect from 12 February 2024.
8 Jason Azzopardi resigned with effect from 12 January 2024.
9 Danielle Corcoran resigned with effect from 6 April 2023.
SHORT-TERM BENEFITS
POST-
EMPLOYMENT
BENEFITS
LONG-TERM
BENEFITS
SHARE-BASED
PAYMENTS4
TOTAL
TOTAL
FY24
1,952,717
340,000
10,000
119,170
42,047
40,247
-
2,504,181
FY23
2,111,507
737,500
10,000
134,392
36,116
20,767
438,750
3,489,032
Pete Lirantzis7
FY24
193,589
-
-
14,420
3,227
-
-
211,236
0.0
0.0
FY23
-
-
-
-
-
-
-
-
-
-
Jason Azzopardi8
FY24
278,590
-
-
17,667
-
40,247
-
336,504
0.0
0.0
FY23
385,013
130,000
-
27,500
7,894
-
67,500
617,907
21.0
10.9
Danielle Corcoran9
FY24
-
-
-
-
-
-
-
-
0.0
0.0
FY23
352,902
-
-
24,392
-
20,767
67,500
465,561
0.0
14.5
Current KMP
Salary
($)
STI awarded
($)
Non-monetary
benefits
($)
Superannuation1
($)
Leave2
($)
Termination
benefits3
($)
Option rights
($)
($)
Percentage
performance
related5 (%)
Percentage
rights related
(%)
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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8. Non-Executive Director remuneration
8.1. Overview of Non-Executive Directors’
remuneration arrangements
8.1.1. Policy objectives
• To be market competitive: aim to set Directors’
fees competitive with Non-Executive Directors in
comparable businesses with respect to product
mix, market capitalisation, geographical market
and employee size;
• To ensure complementary skills: aim to ensure
that the mix of Directors at any one time is diverse
and adequate to carry out the objectives of the
business; and
• To safeguard independence: to exclude any
performance related element in order to preserve
the independence of the Non-Executive Directors.
8.1.2. Aggregate fees approved by shareholders
At the Annual General Meeting (AGM) of shareholders
held on 16 November 2021, the shareholders approved
an increase to the maximum aggregate fee pool per
annum for non-executives to $800,000.
8.1.3. Regular reviews of Directors' fees
The Board reviews the level of Directors’ fees
annually to ensure the fees are in line with market
and are suitable for the level of skill and expertise
required to carry out the duties of Directors in a listed
environment in conjunction with holding an Australian
Financial Services Licence and several Australian
Credit Licences.
The agreed fee structure is that a fee is paid to reflect
the Chairman’s responsibilities. Each Director receives
a base fee and if a Director chairs a Board committee,
an additional fee is applied. Superannuation is payable
in addition to the base fee where a Director is paid via
the Resimac employee payroll system.
The Remuneration & Nominations Committee met in
June 2024 to review the Directors fees and resolved
to not increase fees in FY25.
The FY24 fee levels inclusive of superannuation where
applicable were as follows:
Position
Maximum
fee ($)
Name
Warren
McLeland
Chairman and Risk &
Compliance Chair
166,376 p.a.
Susan
Hansen1
Independent Non-
Executive Director,
Audit Chair & Resimac
New Zealand Chair
163,837 p.a.
Wayne
Spanner
Independent Non-
Executive Director,
Remuneration and
Nomination Chair &
Regulatory Review
Committee Chair
113,035 p.a.
Duncan
Saville1
Non-Executive
Director
74,900 p.a.
Caroline
Waldron
Independent Non-
Executive Director &
Technology, Digital
and Innovation Chair
133,602 p.a.
1 Exclusive of superannuation.
8.1.4. Board skills and behaviours
A key objective for Resimac is to ensure that we have
a diverse Board of Directors. The Board undertakes
an assessment of the skills that each Director holds
biennially which is summarised in a skills matrix. The
skills matrix was last completed by the board in March
2023.
Although it is not expected that all Directors will have
the same skills and behaviours, the purpose of the
matrix is to ensure there is a balance within the Board
to ensure we have diversity of thought. The skills
matrix and behaviours include:
• Strategy, planning, monitoring and policy
development
• ASX experience
• Governance
• Regulatory and stakeholder relations
• Risk and compliance management
• Relevant technical and industry knowledge
• Sustainability
• Finance and audit
• Capital management
• People, culture & remuneration
• Health, safety & environment
• Marketing and business development
• Technology, digital and innovation
The assessment of skills and behaviours ties into
Board succession and selection of Directors.
| REMUNERATION REPORT
| REMUNERATION REPORT
8.1.5. Board evaluation reporting
The Board is committed to transparency in determining Board membership and in assessing the performance of
Directors. The Board undertook performance reviews in 2018 and 2020. At the conclusion of the last full evaluation
in 2020 the Board determined to undertake more frequent assessments which resulted in an assessment of
their effectiveness at the conclusion of each Board meeting. By rotation a Director is responsible for collation of
feedback and any change recommendations. The purpose of this is to assess the performance of the Board as a
whole with respect to time keeping, relevance, preparation and outcomes. The next Board performance review will
take place in the first half of FY25.
The performance of Directors is assessed against a range of criteria including contribution at meetings,
understanding the major risks affecting the Group, contributing to the development of the strategy, committing the
time required to fulfill the role and perform their responsibilities effectively, listening and respecting the ideas of
fellow Directors and management and consistently taking the perspective of creating shareholder value.
The Board with the assistance of the Remuneration and Nominations Committee conducts a review of the
performance of each Director seeking re-election at the Annual General Meeting.
8.1.6. Non-Executive Director remuneration
The fees paid or payable to the Non-Executive Directors in relation to FY24 are set out below:
CURRENT
Fees ($)
Superannuation1 ($)
Total ($)
Warren McLeland
FY24
149,888
16,488
166,376
FY23
127,876
13,427
141,303
Susan Hansen2
FY24
151,682
12,155
163,837
FY23
132,099
9,529
141,628
Wayne Spanner
FY24
101,833
11,202
113,035
FY23
85,000
8,925
93,925
Duncan Saville
FY24
74,900
-
74,900
FY23
74,900
-
74,900
Caroline Waldron2
FY24
122,629
10,973
133,602
FY23
107,972
8,925
116,897
TOTAL REMUNERATION
FY24
600,932
50,818
651,750
FY23
527,847
40,806
568,653
SHORT-TERM
BENEFITS
POST-EMPLOYMENT
BENEFITS
1 Australian superannuation is paid where applicable. New Zealand Kiwisaver is not paid.
2 A portion of remuneration is paid in NZD.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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| REMUNERATION REPORT
| REMUNERATION REPORT
9. Other remuneration information
9.1. Remuneration governance
9.1.1. Remuneration governance and responsibility
The Resimac Board of Directors has responsibility for setting and overseeing the Company’s remuneration policies,
practices and structure. The Board considers recommendations made by the Remuneration and Nomination
Committee.
The remuneration framework and matters considered by the Remuneration and Nomination Committee and the
Board include:
• Review of of Board size and composition (mix of skills, qualifications, experience, independence, diversity and
other competencies);
• Identification and recommendation of candidates to the Board for nomination as members of the Board or its
Committees;
• Development and implementation process for induction and orientation of new Directors;
• Review and approval of Company objectives and appropriate KPIs relevant to the KMP annual short-term
incentive arrangement, and evaluate KMP performance in light of those KPIs;
• Review and approval of the remuneration of KMP, Directors and senior management (including total fixed
remuneration, short-term incentives and long-term incentives);
• Approval of executive recruitment practices;
• Succession planning and talent management; and
• Diversity, equity and inclusion in the workplace.
9.1.2. Remuneration and nomination committee
The Board has established a Remuneration and Nomination Committee. This Committee has a formal charter and is
available on the Company’s website www.resimac.com.au.
The Remuneration and Nomination Committee members are:
• Wayne Spanner - Chair; and
• Susan Hansen
• Warren McLeland
• Caroline Waldron
The Remuneration and Nomination Committee reviews and makes recommendations to the Board on remuneration
governance, policies, practices and structure which will apply to the KMP, senior management and the non-
executive Directors. The Committee also makes recommendations to the Board on the Company’s overall
remuneration framework. The Remuneration and Nomination Committee receives regular reports from Human
Resources and ensures it is abreast of all regulatory change. The Committee meets at least 4 times per year.
9.1.3. Services from remuneration consultants
The Company did not engage remuneration consultants for any services in FY24.
9.1.4. KMP share ownership
The table below sets out the number of shares held directly, indirectly or beneficially by the current and former KMP
(including their related parties):
Held at
1 July 2023
Net
change
Held at
30 June 2024
Non-Executive Directors
Warren McLeland
12,130,165
-
12,130,165
Susan Hansen
212,738
-
212,738
Wayne Spanner
15,732
-
15,732
Duncan Saville
254,586,353
-
254,586,353
Caroline Waldron
-
-
-
266,944,988
-
266,944,988
Senior Executives
Scott McWilliam
1,496,831
(345,363)
1,151,468
Andrew Marsden
-
-
-
James Spurway1
-
-
-
Majid Muhammad
375,000
(50,000)
325,000
Pete Lirantzis
9,316
-
9,316
Jason Azzopardi2
50,000
(50,000)
-
1,931,147
(445,363)
1,485,784
TOTAL
268,876,135
(445,363)
268,430,772
1 James Spurway appointed with effect from 1 May 2024.
2 Jason Azzopardi resigned with effect from 12 January 2024.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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| REMUNERATION REPORT
| REMUNERATION REPORT
9.1.5. Share trading restrictions
Resimac Securities Trading Policy reflects the
Corporations Act 2001 prohibition on KMP and their
closely related parties entering into any arrangement
that would have the effect of limiting the KMP’s
exposure to risk relating to an element of their
remuneration that remains subject to restrictions on
disposal.
Resimac Directors, management team, and members
of their immediate family and controlled entities are
also required to obtain written consent and clearance
for security trading during trading windows from
the Chairman. All other employees must adhere to
the Securities Trading Policy and are restricted from
trading within the blackout periods.
The policy is available on the Corporate Governance
section of the Company’s website at www.resimac.
com.au. Breaches of the policy are subject to
disciplinary action, which may include termination of
employment.
9.1.6. Further information on remuneration
9.1.6.1. Service agreements
Each KMP has entered into an employment contract
with the Company (Resimac Limited). These contracts
have unlimited duration however may be terminated
with relevant notice as set out below unless in the
case of serious misconduct in which the KMP may be
terminated immediately.
All KMPs are entitled to receive payment in lieu of
notice of any accrued statutory entitlement (i.e.
annual and long service leave) on cessation of their
employment.
Notice period /
termination payment
Name
Scott McWilliam
• Six months’ notice (or
payment in lieu)
• May be terminated
immediately for serious
misconduct
Andrew Marsden
• Three months’ notice (or
payment in lieu)
• May be terminated
immediately for serious
misconduct
James Spurway1
• Three months’ notice (or
payment in lieu)
• May be terminated
immediately for serious
misconduct
Majid Muhammad
• Three months’ notice (or
payment in lieu)
• May be terminated
immediately for serious
misconduct
Pete Lirantzis2
• Three months’ notice (or
payment in lieu)
• May be terminated
immediately for serious
misconduct
Jason Azzopardi3
• Three months’ notice (or
payment in lieu)
• May be terminated
immediately for serious
misconduct
1 James Spurway appointed with effect from 1 May 2024.
2 Pete Lirantzis was appointed with effect from 12 February 2024.
3 Jason Azzopardi resigned with effect from 12 January 2024.
9.1.7. Related party transactions
Loans to KMP and their related parties are secured residential mortgage loans provided in the ordinary course of
the Group’s mortgage lending business. All loans have normal commercial terms. No amounts have been written
down or recorded as specific provisions as the balances are considered fully collectable.
Details regarding loans outstanding to KMP and their related parties during the reporting period, are outlined below.
Balance
1 July 2023
Balance
30 June 2024
Interest payable
for the year4
Highest balance
during the year
Non-Executive Directors
($)
($)
($)
($)
Duncan Saville
15,672,3005
18,618,655
1,147,660
19,514,643
Senior Executives
Scott McWilliam
2,000,000
2,000,000
100,967
2,009,446
Andrew Marsden
-
113,032
7,011
128,428
Jason Azzopardi
-
55,271
1,753
57,196
17,672,300
20,786,958
1,257,391
21,709,713
4 Interest is charged on an arm’s-length basis.
5 Opening balance has been adjusted for comparability.
9.1.7.1. Other transactions and balances with KMP
From time to time, Directors of the Company or its controlled entities, or their Director-related entities may obtain
loans or ad hoc services from the Group, on the same terms and conditions as those entered into by other group
employees or customers.
In FY23, a Director-related entity obtained a short term loan on market terms from the Group. This loan was fully
repaid ($8,000,000) during FY24 and nil balance was outstanding at 30 June 2024.
This Directors’ report, including the remuneration report, is signed in accordance with a resolution of the Directors
made pursuant to s.298 (2) of the Corporations Act 2001.
On behalf of the Directors of Resimac Group Ltd.
Warren McLeland
Chairman
Sydney
28 August 2024
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 43
42 |
| CONSOLIDATED STATEMENT OF PROFIT OR LOSS
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Financial
statements.
Consolidated statements
for the year ended 30 June 2024
NOTE
FY24
FY23
$'000
$'000
Interest income
1
995,320
902,131
Interest expense
2
(835,730)
(679,624)
Net interest income
159,590
222,507
Fee and commission income
1
6,598
2,670
Fee and commission expense
2
(16,053)
(34,055)
Fair value gains on derivatives
1
426
-
Fair value losses on derivatives
2
(12,081)
(12,255)
Fair value write-down on unlisted equity investment
2
-
(3,600)
Other income
1
4,334
6,215
Employee benefits expense
2
(51,881)
(51,226)
Other expenses
2
(29,220)
(32,631)
Loan impairment expense
2
(11,602)
(2,240)
Profit before tax
50,111
95,385
Income tax expense
3
(15,320)
(28,926)
PROFIT AFTER TAX
34,791
66,459
Attributable to:
Owners of the parent
34,590
66,446
Non-controlling interest
201
13
34,791
66,459
FY24
FY23
Earnings per share
cents
per share
cents
per share
Basic
21
8.65
16.52
Diluted
21
8.64
16.48
Notes to the consolidated financial statements are included on pages 48 to 125.
NOTE
FY24
FY23
$'000
$'000
PROFIT AFTER TAX
34,791
66,459
Other comprehensive (expense)/income, net of income tax
Items that will not be reclassified subsequently to profit or loss:
Fair value movement on equity investment in listed companies through
OCI, net of tax
(2,382)
(1,614)
Items that may be reclassified subsequently to profit or loss:
Changes in fair value of cash flow hedges
(728)
11,618
Tax effect
205
(3,477)
Currency translation differences
(219)
789
Other comprehensive (expense)/income, net of tax
(3,124)
7,316
Attributable to:
Owners of the parent
31,466
73,762
Non-controlling interest
201
13
31,667
73,775
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
31,667
73,775
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 45
44 |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
NOTE
FY24
FY23
Assets
$'000
$'000
Cash and cash equivalents
4
870,999
1,085,417
Trade and other receivables
5
5,061
3,472
Current tax receivable
3
6,309
8,115
Loans and advances
6
14,097,505
13,735,635
Contract assets
1
9,569
13,877
Other financial assets
7
18,655
28,587
Derivative financial assets
23
47,597
25,196
Right-of-use assets
8
5,554
7,323
Plant and equipment
9
735
1,320
Other assets
10
870
4,683
Deferred tax assets
3
3,472
34
Goodwill and intangible assets
11
28,379
28,379
15,094,705
14,942,038
Liabilities
Trade and other payables
12
27,192
27,146
Interest-bearing liabilities
13
14,415,581
14,471,070
Lease liabilities
14
7,368
9,369
Other financial liabilities
15
85,864
6,850
Derivative financial liabilities
23
135,639
426
Other liabilities
16
596
4,455
Provisions
17
6,104
7,339
14,678,344
14,526,655
NET ASSETS
416,361
415,383
Equity
Share capital
20
173,916
173,531
Reverse acquisition reserve
20
(61,541)
(61,541)
Total issued capital
20
112,375
111,990
Reserves
20.3
(23,686)
(19,589)
Retained earnings
20.3
327,361
322,872
Equity attributable to owners of the parent
416,050
415,273
Non-controlling interest
311
110
416,361
415,383
Notes to the consolidated financial statements are included on pages 48 to 125.
1 As a result of reverse acquisition accounting on the Resimac/Homeloans merger, an equity account was created as a component of equity. This account called ‘Reverse
acquisition reserve’ is similar in nature to share capital. The Reverse acquisition reserve is not available for distribution.
2 Comprises cash flow hedge reserve, foreign currency translation reserve, fair value reserve, share-based payment reserve and other reserve. Refer to Note 20 for more detail.
Share capital
Reverse
acquisition
reserve1
Total
issued
capital
Reserves2
Retained
earnings
Attributable
to owners of
the parent
Non-
controlling
interest
Total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Balance as at 1 July 2023
173,531
(61,541)
111,990
(19,589)
322,872
415,273
110
415,383
Transactions with owners in their capacity as owners
Share buyback
(1,475)
-
(1,475)
-
-
(1,475)
-
(1,475)
Equity dividends
-
-
-
-
(30,101)
(30,101)
-
(30,101)
Treasury shares
1,860
-
1,860
-
-
1,860
-
1,860
Share-based payments
-
-
-
(973)
-
(973)
-
(973)
Balance at 30 June 2024
173,916
(61,541)
112,375
(23,686)
327,361
416,050
311
416,361
Profit for the year
-
-
-
-
34,590
34,590
201
34,791
Other comprehensive income, net of income tax
-
-
-
(3,124)
-
(3,124)
-
(3,124)
Total comprehensive income for the year
-
-
-
(3,124)
34,590
31,466
201
31,667
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 47
46 |
Profit for the year
-
-
-
-
66,446
66,446
13
66,459
Other comprehensive income, net of income tax
-
-
-
7,316
-
7,316
-
7,316
Total comprehensive income for the year
-
-
-
7,316
66,446
73,762
13
73,775
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| CONSOLIDATED STATEMENT OF CASH FLOWS
Notes to the consolidated financial statements are included on pages 48 to 125.
1 As a result of reverse acquisition accounting on the Resimac/Homeloans merger, an equity account was created as a component of equity. This account called ‘Reverse
acquisition reserve’ is similar in nature to share capital. The Reverse acquisition reserve is not available for distribution.
2 Comprises cash flow hedge reserve, foreign currency translation reserve, fair value reserve, share-based payment reserve and other reserve. Refer to Note 20 for more detail.
NOTE
FY24
FY23
Cash flows from operating activities
$'000
$'000
Interest received
1,036,123
900,834
Interest paid
(834,680)
(658,365)
Receipts from loan fees and other income
28,715
28,918
Payments to suppliers and employees
(168,888)
(160,918)
(Payments)/receipts of net loans to/from borrowers
(152,967)
1,948,495
Income tax paid
(15,764)
(41,596)
Net cash (used in) / from operating activities
4
(107,461)
2,017,368
Cash flows from investing activities
Payment for plant and equipment
(68)
(176)
Payment for acquisition of loan portfolio/subsidiary
(14,799)
(900)
Cash acquired on acquisition of loan portfolio/subsidiary
6,773
220
Payments for new investments
(1,471)
(5,000)
Proceeds on disposal of investments
-
260
Return of capital from listed equity investment
-
1,581
Dividend income from listed equity investments
277
3,780
Net cash used in investing activities
(9,288)
(235)
Cash flows from financing activities
Proceeds from borrowings
11,245,868
7,839,034
Repayment of borrowings
(11,334,096)
(9,670,882)
Proceeds from exercise of options
702
675
Payment of lease liabilities
(1,852)
(1,753)
Swap receipts
15,156
13,588
Payment of dividends
(30,101)
(32,173)
Repayment/(draw down) of loan to related party
8,000
(8,000)
Payment for share buybacks
(1,475)
(5,192)
Net cash used in financing activities
(97,798)
(1,864,703)
Net (decrease)/increase in cash and cash equivalents
(214,547)
152,430
Cash and cash equivalents at the beginning of the financial year (1 July)
1,085,417
932,781
Effects of exchange rate changes on cash balances held in foreign currencies
129
206
Cash and cash equivalents at end of year
4
870,999
1,085,417
Notes to the consolidated financial statements are included on pages 48 to 125.
Share capital
Reverse
acquisition
reserve1
Total
issued
capital
Reserves2
Retained
earnings
Attributable
to owners of
the parent
Non-
controlling
interest
Total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Balance as at 1 July 2022
176,476
(61,541)
114,935
(25,466)
288,599
378,068
-
378,068
Transactions with owners in their capacity as owners
Acquisition of non-controlling interest
-
-
-
-
-
-
97
97
Share buyback
(5,192)
-
(5,192)
-
-
(5,192)
-
(5,192)
Equity dividends
-
-
-
-
(32,173)
(32,173)
-
(32,173)
Treasury shares
2,247
-
2,247
-
-
2,247
-
2,247
Share-based payments
-
-
-
(1,439)
-
(1,439)
-
(1,439)
Balance at 30 June 2023
173,531
(61,541)
111,990
(19,589)
322,872
415,273
110
415,383
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 49
48 |
Notes to the consolidated
financial statements.
Notes to the consolidated
financial statements.
For the year ended
30 June 2024
About this report
49
Segment information
52
Key numbers and policies
54
Capital
82
Risk
88
Group structure
112
Unrecognised items
116
Other
117
Notes to the
consolidated
financial
statements.
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ABOUT THIS REPORT
About this
report.
For the year ended
30 June 2024
Resimac Group Ltd (“Resimac” or “the Company”) is
a for-profit company limited by shares incorporated
and domiciled in Australia whose shares are publicly
traded on the Australian Securities Exchange. The
nature of the operations and principal activities of
Resimac and entities that it controls (referred to as
“the Group”) are described in the segment information.
The consolidated general purpose financial report
of the Group for the year ended 30 June 2024 was
authorised for issue in accordance with a resolution of
the Directors on 28 August 2024. The Directors have
the power to amend and reissue the financial report.
The financial report is a general purpose financial
report which:
• has been prepared in accordance with the
requirements of the Corporations Act 2001,
Australian Accounting Standards (AAS) and
other authoritative pronouncements of the
Australian Accounting Standards Board (AASB)
and International Financial Reporting Standards
(IFRS) as issued by the International Accounting
Standards Board (IASB);
• has been prepared on a historical cost basis, and
with certain financial instruments measured at fair
value. The carrying values of recognised assets
and liabilities that are the hedged items in fair
value hedge relationships, which are otherwise
carried at amortised cost, are adjusted to record
changes in the fair values attributable to the risks
that are being hedged;
• is presented in Australian dollars with all values
rounded to the nearest thousand dollars ($’000)
unless otherwise stated, in accordance with ASIC
Corporations (Rounding in Financial/Directors’
Reports) Instrument 2016/191; and
• adopts all new and amended Accounting
Standards and Interpretations issued by the AASB
that are relevant to the Group and effective for
reporting periods beginning on 1 July 2023. Refer
to Note 32 for further details.
Key judgements and estimates
In the application of the Group’s accounting policies,
the Directors are required to make judgements,
estimates and assumptions about the carrying value
of assets and liabilities that are not readily apparent
from other sources. The estimates and associated
assumptions are based on historical experience
and various other factors that are believed to be
reasonable under the circumstances, the results of
which form the basis of making judgements. Actual
results may differ from these estimates.
Judgements and estimates which are material to the
financial report are found in the following notes:
Note
Relates to
11
Goodwill impairment
15
Net present value of expected future
trail commission payable for on
balance sheet loans
22&23
Impairment of financial assets
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 51
50 |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ABOUT THIS REPORT
Basis of consolidation
The consolidated financial statements comprise the
financial statements of the Group. A list of controlled
entities (subsidiaries) at year end is contained in Note
24.
The financial statements of subsidiaries are prepared
for the same reporting period as the parent company,
using consistent accounting policies.
Subsidiaries are consolidated from the date on which
control is obtained to the date on which control is
disposed.
The Group controls an investee if and only if the Group
has:
• power over the investee (i.e. existing rights that
give it the current ability to direct the relevant
activities of the investee);
• exposure, or rights, to variable returns from its
involvement with the investee; and
• the ability to use its power over the investee to
affect its return.
In preparing the consolidated financial statements, all
inter-company balances and transactions, income and
expenses and profits and losses resulting from intra-
Group transactions have been eliminated.
The acquisition of subsidiaries is accounted for using
the acquisition method.
Refer to Note 24 for detail on the consolidation of
special purpose vehicles.
Foreign currency
As at the reporting date, assets and liabilities of
overseas subsidiaries are translated into Australian
dollars at the rate of exchange at the balance sheet
date and the income statements are translated at the
average exchange rate for the year. The exchange
differences arising on the retranslation are taken
directly to a separate component of equity.
Transactions in foreign currencies are initially recorded
in the functional currency at the exchange rates
ruling at the date of the transaction. Monetary assets
and liabilities denominated in foreign currencies
are translated at the rate of exchange ruling at the
balance sheet date. Exchange differences arising from
the application of these procedures are taken to the
income statement, with the exception of differences
on foreign currency borrowings that provide a hedge
against a net investment in a foreign entity, which
are taken directly to equity until the disposal of the
net investment, and then recognised in the income
statement. Tax charges and credits attributable to
exchange differences on those borrowings are also
recognised in equity.
Other accounting policies
Material and other accounting policies that summarise
the recognition and measurement basis relevant
to an understanding of the financial statements
are provided throughout the notes to the financial
statements.
The notes to the financial statements
The notes include information required to understand
the financial statements and is material and relevant
to the operations, financial position and performance
of the Group. Information is considered material and
relevant if, for example:
• the amount in question is significant because of its
size or nature;
• it is important for understanding the results of the
Group;
• it helps to explain the impact of significant
changes in the Group’s business – for example,
acquisitions and impairment write-downs; or
• it relates to an aspect of the Group’s operations
that is important to its future performance.
The notes are organised into the following sections:
Key numbers: provides a breakdown of individual
line items in the financial statements that the
Directors consider most relevant and summarises
the accounting policies, judgements and estimates
relevant to understanding these line items;
Capital: provides information about the capital
management practices of the Group and shareholder
returns for the year;
Risk: details the Group’s exposure to various financial
risks, explains how these affect the Group’s financial
position and performance, and what the Group does
to manage these risks;
Group structure: explains the Group structure and
how changes have affected the financial position and
performance of the Group;
Unrecognised items: provides information regarding
items not recognised in the financial statements
but could potentially have an impact on the Group’s
financial position and performance; and
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ABOUT THIS REPORT
Other: provides information on items which require disclosure to comply with AAS and other regulatory
pronouncements, however, are not considered critical in understanding the financial performance or position of the
Group.
Changes in accounting policy
During the year ended 30 June 2024, the Resimac Group revised its accounting treatment of ongoing trail
commission payable to mortgage brokers. The Group has recognised a liability within ‘Other financial liabilities’
equal to the present value of expected future trail commission payments, and a corresponding increase in
capitalised brokerage costs/transactions costs within ‘Loans and Advances’. This change in presentation has also
resulted in the impact of payments to mortgage brokers being included in the effective interest rate applied in
‘Interest Income’. Such payments were previously disclosed in Fee and Commission expense in the Statement of
Profit and Loss.
Comparatives have not been revised for this change in accounting presentation as the impact is not material to the
financial statements.
The following table summarises the impact the accounting presentation change would have had on each
comparative line item, had the change been adopted on a retrospective basis.
As reported
$'000
Adjustment
$'000
Including trailing
commission
$'000
Statement of profit or loss and other comprehensive income
Interest income
902,131
(26,375)
875,756
Interest expense
(679,624)
5,058
(674,566)
Net interest income
222,507
(21,317)
201,190
Fee and commission expense
(34,055)
21,317
(12,738)
Profit before tax
95,385
-
95,385
Income tax expense
(28,926)
-
(28,926)
Profit after tax
66,459
-
66,459
Total comprehensive income for the year
73,775
-
73,775
Statement of financial position
Loans and advances
13,735,635
80,933
13,816,568
Total assets
14,942,038
80,933
15,022,971
Other financial liabilities
6,850
80,933
87,783
Total liabilities
14,526,655
80,933
14,607,588
Net assets
415,383
-
415,383
FY23
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 53
52 |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
SEGMENT INFORMATION
Segment
information.
For the year ended
30 June 2024
The Group has identified three reportable segments based on the nature of the products and services provided, the
type of customers for those products and services, the geographies where the business operates and the existence
of discrete and separate reporting and management teams. The internal reports of the reportable segments are
regularly reviewed by the Board and executive management team (the Chief Operating Decision makers) in order to
allocate resources to the segment and to assess its performance.
The Group’s reportable segments under AASB 8 Operating Segments are therefore as follows:
Home Loan Lending business
Represents the mortgage distribution and lending
businesses currently captured under the Resimac and
homeloans.com.au brands.
The segment contains the Australian mortgage based
income and expense. It incorporates the new business
settled through the Australian distribution channels,
the margin net of funding costs of the on balance
sheet home loan portfolios, and the upfront and trail
commission relating to both Resimac’s mortgage
portfolio and from funders on the non-principally
funded loans (white label loan portfolio).
New Zealand Lending business
Whilst the nature of the customers and products are
similar to the Australian Home Loan Lending segment,
given the different jurisdiction and market conditions,
management believe it is appropriate to distinguish
the result of New Zealand (NZ) from Australia.
Separating the Australian and NZ trading business is
supported by the NZ segment monthly management
reporting to the Chief Operating Decision Maker,
separate regulatory requirements/oversight, and staff
solely accountable for the NZ business including a
Head of NZ.
On 20 June 2024, the Group announced to the market
that Resimac would cease to accept new home
loan applications in New Zealand from 1 July 2024.
Resimac is committed to fully service its existing New
Zealand customers, and any customers in the pipeline,
and transition to a servicing business model in the
financial period ending 30 June 2025. Management
anticipate that the New Zealand Lending business
segment will reduce overtime with the underlying
portfolio going into runoff. Going forward, the
importance of this segment to the Group will reduce.
Asset Finance Lending business
The Group’s fully owned subsidiary Resimac Asset
Finance (RAF) specialises in Australian based lending
solutions that span across auto finance, equipment
finance, secured business loans and insurance
premium loans.
In the prior financial years the Asset Finance Lending
business was reported within the Home Loan Lending
business segment. The financial reporting period
ended 30 June 2024 is the first financial period the
Asset Finance Lending business has been identified
as a separate reporting segment. The prior year
comparatives have been restated to reflect the Asset
Finance Lending business as a separate reporting
segment for comparison purposes.
Separating the Home Loan and Asset Finance Lending
businesses is supported by RAF segment monthly
management reporting to the Chief Operating
Decision Maker and the recent business growth in this
segment.
Corporate costs relating to this segment (i.e.
employment costs) are incurred by the Group. For the
purposes of segment reporting these corporate costs
are allocated to this segment.
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
SEGMENT INFORMATION
The following is an analysis of the Group’s revenue and results by reportable operating segments:
1 Income tax expense is disclosed on a consolidated basis, not by reportable operating segment.
2 Tax assets and liabilities are disclosed on a consolidated basis, not by reportable operating segment.
The following is an analysis of the Group’s assets and liabilities by reportable operating segment:
FY24
FY23
FY24
FY23
FY24
FY23
FY24
FY23
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Revenue from external customers
857,056
817,669
53,158
50,766
96,464
42,581
1,006,678
911,016
Total segment revenue
857,056
817,669
53,158
50,766
96,464
42,581
1,006,678
911,016
Segment results before fair value
(losses)/gains on derivatives,
interest, tax, depreciation,
amortisation, finance costs and
impairment
795,087
727,874
47,753
44,530
84,196
34,235
927,036
806,639
Fair value gain/(losses) on
derivatives
(9,786)
(8,824)
(3,168)
(3,431)
873
-
(12,081)
(12,255)
Interest expense
(727,627)
(608,287)
(45,625)
(42,421)
(62,478)
(28,916)
(835,730)
(679,624)
Depreciation and amortisation
(2,196)
(2,333)
(83)
(86)
(1)
(4)
(2,280)
(2,423)
Loan impairment
3,519
(220)
(467)
(85)
(14,654)
(1,935)
(11,602)
(2,240)
Financing costs
(10,777)
(12,261)
(828)
(759)
(3,627)
(1,692)
(15,232)
(14,712)
Segment results before income tax
48,220
95,949
(2,418)
(2,252)
4,309
1,688
50,111
95,385
Income tax expense1
(15,320)
(28,926)
PROFIT AFTER TAX
34,791
66,459
Home Loan Lending
New Zealand Lending
Asset Finance Lending
Consolidated
FY24
FY23
FY24
FY23
FY24
FY23
FY24
FY23
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Segment assets excl. tax
13,302,511
13,431,345
634,641
839,655
1,147,772
662,889
15,084,924
14,933,889
13,302,511
13,431,345
634,641
839,655
1,147,772
662,889
15,084,924
14,933,889
Segment liabilities excl. tax
(12,950,325)
(13,071,935)
(584,503)
(790,426)
(1,143,516)
(664,294)
(14,678,344) (14,526,655)
Net assets/(liabilities) excl. tax
352,186
359,410
50,138
49,229
4,256
(1,405)
406,580
407,234
Tax assets2
9,781
8,149
Tax liabilities2
-
-
NET ASSETS
416,361
415,383
Home Loan Lending
New Zealand Lending
Asset Finance Lending
Consolidated
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 55
54 |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
Key numbers
& policies.
For the year ended
30 June 2024
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
1. Revenue
1.1. Revenue streams
The Group generates revenue primarily from interest income and other income.
FY24
FY23
Interest income
$'000
$'000
Loans and advances
966,022
881,006
Bank deposits
28,602
19,994
Discount unwind on NPV of trail commission on white label loans
696
1,131
995,320
902,131
Fee and commission income (Revenue from contracts with customers)
6,598
2,670
Other income
Dividend income
377
5,401
Other
3,957
814
4,334
6,215
Fair value gains on derivatives
Fair value gains on overnight index swaps
426
-
426
-
Total revenue
1,006,678
911,016
RECOGNITION & MEASUREMENT
Interest income - loans and advances
Loans and advances are initially recognised at fair
value. Subsequent to initial recognition, the loans
are measured at amortised cost using the effective
interest method over the estimated actual (but not
contractual) life of the mortgage, taking into account
all income and expenditure directly attributable to the
loan.
Interest income on loans and advances is recognised
as it accrues using the effective interest rate method.
The rate at which revenue is recognised is referred to
as the effective interest rate and is equivalent to the
rate that effectively discounts estimated future cash
flows throughout the estimated life.
Acquisition costs representing upfront broker
commissions related to originating loans and
advances, as well as the expected value of ongoing
trailing commission costs are capitalised on the
statement of financial position of the Group. These
costs are amortised to the statement of profit or loss
across the expected life of the loan in interest income
as part of the effective interest rate.
Loans and advances in arrears or hardship at 30
June 2024 continue to accrue interest income.
Consideration for potential future credit losses on
loans in arrears or hardship is reflected in Note 23.
Interest income - bank deposits
This comprises interest income on cash held with
Australian Authorised Deposit-taking Institutions
(ADIs) predominantly in securitisation trusts. Interest
income is recognised as it accrues, using the effective
interest method.
Fee and commission income
Revenue is based on the consideration specified in
a contract with a customer. The Group recognises
revenue when it transfers control over a good or
service to a customer. Fee and commission income
include fees other than those that are an integral
part of loans and advances measured using effective
interest rate method, and which are accounted for in
accordance with AASB 15 Revenue from Contracts
with Customers.
The following table provides information about the
nature and timing of the satisfaction of performance
obligations in contracts with customers, and the
related revenue recognition policies.
Timing
Type of
service
Nature, timing of satisfaction
of performance obligations
Revenue recognition
policy under AASB 15
At a point
in time
Loan man
agement
revenue
Trail commission income on white label
loans, based on the individual monthly
loan balance outstanding each month.
Trail ceases once the loan is discharged.
The contracts with the originators
include performance obligations which
must be satisfied in order to be paid trail
commission.
Revenue is recognised at the point
in time the loan is being settled and
performance obligations are satisfied
according to the contracts with the
lenders.
The present value of the trailing
commission receivable is recognised as
a contract asset and measured using
the expected value method with variable
consideration at a point in time.
At a point
in time
Lending fee
income
Loan fees paid by the borrower such as
application, discharge, dishonour fee,
etc. The performance obligation for these
fees is met at a point in time (settlement,
discharge etc) when the fee is charged to
the borrower.
Revenue is recognised when the
transaction is completed, and the
performance obligations are met.
Classification and measurement of revenue
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 57
56 |
Fair value gains on derivatives
The Group’s funding structures contractually require
the Group to enter into interest rate swaps on the
origination of fixed rate loans to customers, to
ensure the Group’s special purpose vehicles maintain
sufficient cash flows by eliminating interest rate risk
exposure.
At 30 June 2024, the fair value of future cash flows of
each swap that was not designated and qualified as a
cash flow hedge was determined in line with AASB 9
Financial Instruments, and the resulting gain or loss is
recognised in the statement of profit or loss.
Other income
Dividend income is recognised when the right to
receive the payment is established.
Other income includes various items including but not
limited to payments received under operating leases
as income on a straight-line basis over the lease
(office sub-lease) and recovery of previously written
off loans.
1.2. Disaggregation of revenue from contracts with
customers
In the following table, revenue from contracts with
customers is disaggregated by primary geographical
market, major service lines and timing of revenue
recognition. The table also includes a reconciliation of
the disaggregated revenue with the Group’s reportable
segments (see 'Segment information' on page 52).
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
1.3. Assets related to contract with customers
The Group has recognised the following assets related to contracts with customers
FY24
FY23
Contract assets - present value of future trail commission receivable
$'000
$'000
Current
3,548
4,724
Non-current
6,021
9,153
9,569
13,877
RECOGNITION & MEASUREMENT
Contract assets - present value of future trail commission receivable
The contract assets relates to the Group’s rights to receive trail commissions from lenders on white label settled
loans, over the life of the loan based on the monthly loan balance outstanding. The contract assets are transferred
to receivables when the rights become unconditional. White label loans ceased origination in FY19, and the portfolio
remains in runoff.
Measurement
The future trail commission receivable is measured at expected value. The carrying amounts of the trail commission
receivable are adjusted to reflect actual and revised estimated cash flows by computing the present value of
estimated future cash flows at the effective interest rates. The resulting adjustment is recognised as income or
expense in the statement of comprehensive income (disclosed as loan management under fee and commission
income in Note 1.2).
A remeasurement of the underlying cash flows relating to the trail commission receivable occurs at each reporting
date.
FY24
FY23
FY24
FY23
FY24
FY23
FY24
FY23
Fee and commission income
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Mortgage origination
(31)
41
-
-
143
104
112
145
Loan management
29
(4,531)
-
-
-
-
29
(4,531)
Lending fee income
2,595
3,663
481
1,565
3,381
1,828
6,457
7,056
2,593
(827)
481
1,565
3,524
1,932
6,598
2,670
HOME LOAN
LENDING
Timing of revenue recognition
Service transferred
at a point in time
2,593
(827)
481
1,565
3,524
1,932
6,598
2,670
Revenue from contracts
with customers
2,593
(827)
481
1,565
3,524
1,932
6,598
2,670
Interest income
852,057
813,210
52,665
48,995
90,598
39,926
995,320
902,131
Fair value gains on derivatives
426
-
-
-
-
-
426
-
Other income
1,980
5,286
12
206
2,342
723
4,334
6,215
External revenue as reported
in segment information
857,056
817,669
53,158
50,766
96,464
42,581
1,006,678
911,016
NEW ZEALAND
LENDING
ASSET FINANCE
LENDING
CONSOLIDATED
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 59
58 |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
FY24
FY23
Interest
$'000
$'000
Bond and warehouse facilities
822,601
662,613
Amortisation – facility issuance costs
10,077
10,583
Discount unwind on NPV of trail commission liability
(2,369)
558
Corporate facility
5,115
5,459
Interest on lease liabilities
306
411
835,730
679,624
2. Expenses
Fee and commission
Loan management
921
19,872
Borrowing commitment costs
4,851
5,801
RMBS costs
10,381
8,911
Discharge fee refund provision release1
(100)
(529)
16,053
34,055
Employee benefits
Remuneration, superannuation and on-costs
51,683
50,394
Share-based payments
198
832
51,881
51,226
Fair value losses on derivatives
Fair value losses on interest rate swaps
12,081
11,829
Fair value losses on overnight index swaps
-
426
12,081
12,255
Other
Audit and other professional fees
3,267
2,640
Depreciation and amortisation
654
780
Depreciation of right-of-use assets
1,626
1,643
Insurance
2,512
2,562
Marketing
2,028
5,036
Rent and occupancy costs
1,099
1,154
Technology expenses2
12,323
12,762
Unrecoverable GST
2,846
2,469
Other
2,865
3,585
29,220
32,631
Fair value write-down on unlisted equity investment
-
3,600
Loan impairment expense (see Note 6)
11,602
2,240
956,567
815,631
1 See Note 17 for details of the discharge fee refund provision (release)/charge.
2 Includes core banking IT project costs (FY24: $2.0 million; FY23: $2.0 million).
RECOGNITION & MEASUREMENT
2.1. Interest
Bond and warehouse facilities and corporate facility
Recognised in the profit or loss as its accrues using
the effective interest rate method.
Bond and warehouse facilities interest expense
include coupon payments on notes issued, and
interest paid on non-securitised funding facilities.
Amortisation - facility issuance costs
Transaction costs incurred by the Group incremental
to the issue of debt securities by the securitisation
trusts, are capitalised on the statement of financial
position of the parent entity as facility issuance costs.
These costs are amortised to the statement of profit
or loss over the average expected life of the debt
securities using the effective interest rate method.
2.2. Fee and commission
Loan management
Includes trail commission payable expense on
white label loans based on individual loan balances
outstanding and the loan continuing to perform.
The FY23 comparative also includes the trail
commission and service provider fee payments to
brokers for originating on balance sheet loans. In
FY24, these are included in the effective interest rate
applied in ‘Interest Income’.
Borrowing commitment costs
Commitment fees directly related to the Group’s global
funding program.
RMBS costs
Other financing costs include trustee and servicer
fees, liquidity fees, rating agency fees, and other fees
related to the ongoing operation of the bond and
warehouse facilities.
2.3. Employee benefits
Employee benefits expense includes fixed and variable
remuneration, superannuation, and associated on-
costs.
The policy relating to share-based payments is set out
in Note 31.
2.4. Fair value losses on derivatives
The policy relating to fair value losses on derivatives is
set out in Note 1.1.
2.5. Other
This mainly comprises bank and regulatory fees, and
general administration expenses. These items are
expensed when incurred.
2.6. Loan impairment
Loan impairment expenses relates to the movement in
the:
• specific and collective provisions; and
• direct loan write-offs recognised during the year;
See Note 6 for detail on impairment of loans and
advances.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 61
60 |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
FY24
FY23
Current tax
$'000
$'000
In respect of the current year
17,097
34,228
In respect of prior years
225
71
Translation loss on foreign currency assets and liabilities
-
3
17,322
34,302
3. Income tax
3.1. Income tax recognised in profit or loss
Deferred tax
In respect of the current year
(1,906)
(5,380)
In respect of prior years
(96)
4
(2,002)
(5,376)
Total income tax expense recognised in the current year
15,320
28,926
The income tax expense for the year can be reconciled to the accounting profit as follows:
Profit before tax
50,111
95,385
Income tax expense calculated at 30% (FY23: 30%)
15,033
28,616
Effect of expenses that are not deductible in determining taxable profit
233
110
Effect of different tax rates of subsidiaries operating in other jurisdictions
111
122
Employee share scheme
(44)
63
Other items
(142)
(60)
15,191
28,851
Adjustments recognised in the current year in relation to the deferred tax of prior years
(96)
4
Adjustments recognised in the current year in relation to the current tax of prior years
225
71
Income tax expense recognised in profit or loss
15,320
28,926
The tax rate used for FY24 and FY23 reconciliations is the corporate tax rate of 30% payable by corporate entities
in Australia, and 28% in New Zealand.
RECOGNITION & MEASUREMENT
Income tax expense represents the sum of the tax currently payable and deferred tax.
FY24
FY23
$'000
$'000
Current tax receivable
6,309
8,115
6,309
8,115
3.2. Current tax balances
3.3. Deferred tax balances
The following is the analysis of deferred tax assets (DTA) and deferred tax liabilities (DTL) presented in the
consolidated statement of financial position:
FY24
FY23
$'000
$'000
Deferred tax assets
3,472
34
Deferred tax assets/(liabilities)
3,472
34
Opening
balance1
Current year
recognised in
profit or loss
Previously
unrecognised
in profit or loss
Recognised
directly in
equity / recoup
loss against tax
liability
Closing
balance
FY24
$'000
$'000
$'000
$'000
$'000
Deferred tax assets/(liabilities)
Provision for expected credit loss
12,749
1,467
-
(2)
14,214
Plant, equipment and software
1,376
194
-
-
1,570
Employee entitlements
1,546
35
(1)
-
1,580
Provision for lease make good
59
-
(1)
-
58
Provision for discharge fee refund
1,182
(465)
-
-
717
Trail commission payable
29,457
707
-
-
30,164
Lease liability
627
(148)
-
-
479
Capitalised upfront commission
(15,031)
(1,450)
3
2
(16,476)
Capitalised trail commission
(24,280)
33
-
-
(24,247)
Deferred bond issue cost
(3,208)
(42)
(3)
2
(3,251)
Derivatives
(1,441)
2,546
(3)
205
1,307
Trail commission receivable
(7,229)
-
(1)
-
(7,230)
Others
4,227
(971)
102
1,229
4,587
34
1,906
96
1,436
3,472
1 Opening balance has been updated to adjust for the change in accounting treatment of ongoing trail commission (see page 51).
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 63
62 |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
RECOGNITION & MEASUREMENT
Income tax expense represents the sum of the tax currently payable and deferred tax.
Deferred tax assets (DTAs) are generally recognised
for all deductible temporary differences to the
extent that it is probable that taxable profits will be
available against which those deductible temporary
differences can be utilised. Such DTAs and DTLs are
not recognised if the temporary difference arises
from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction
that affects neither the taxable profit nor the
accounting profit and at the time of the transaction,
does not give rise to equal taxable and deductible
temporary differences.
In addition, DTLs are not recognised if the temporary
difference arises from the initial recognition of
goodwill.
DTLs are recognised for taxable temporary differences
associated with investments in subsidiaries and
associates, and interests in joint ventures, except
where the Group is able to control the reversal of
the temporary difference and it is probable that
the temporary difference will not reverse in the
foreseeable future.
DTAs arising from deductible temporary differences
associated with such investments and interests are
only recognised to the extent that it is probable that
there will be sufficient taxable profits against which to
utilise the benefits of the temporary differences and
they are expected to reverse in the foreseeable future.
The carrying amount of DTAs is reviewed at the end of
each reporting period and reduced to the extent that
it is no longer probable that sufficient taxable profits
will be available to allow all or part of the asset to be
recovered.
DTLs and DTAs are measured at the tax rates that are
expected to apply in the period in which the liability is
settled or the asset realised, based on tax rates (and
tax laws) that have been enacted or substantively
enacted by the end of the reporting period.
The measurement of DTLs and DTAs reflects the tax
consequences that would follow from the manner in
which the Group expects, at the end of the reporting
period, to recover or settle the carrying amount of its
assets and liabilities.
c. Current and deferred tax for the year
Current and deferred tax are recognised in the
statement of comprehensive income, except when
they relate to items that are recognised in other
comprehensive income or directly in equity, in which
case, the current and deferred tax are also recognised
in other comprehensive income or directly in equity
respectively. Where current tax or deferred tax arises
from the initial accounting for a business combination,
the tax effect is included in the accounting for the
business combination.
d. Tax consolidation and tax effect accounting by
members of the tax consolidated group
Resimac Group Ltd and its wholly-owned Australian
controlled entities have implemented the tax
consolidation legislation. The head entity Resimac
Group Ltd, and the controlled entities in the tax
consolidated group continue to account for their own
current and deferred tax amounts. The Group has
applied the group allocation approach in determining
the appropriate amount of current taxes and deferred
taxes to allocate to members of the tax consolidated
group. The current and deferred tax amounts are
measured in a systematic manner that is consistent
with the broad principles in AASB 112 Income Taxes.
In addition to its own current and deferred tax
amounts, the head entity also recognised current
tax liabilities (or assets) and the deferred tax assets
arising from unused tax losses and unused tax credits
assumed from controlled entities in the Resimac tax
consolidated group. Unused tax losses at 30 June
2024 is $0.7 million (FY23: $0.9 million).
e. Nature of the tax funding agreement
Members of the Group have entered into a tax funding
agreement. The tax funding agreement requires
payments to/from the head entity to be recognised via
an inter-entity receivable (payable) which is at call.
The allocation of taxes under the tax funding
agreement is recognised as an increase or decrease
in the subsidiaries’ intercompany accounts with the
tax consolidated group head company, Resimac Group
Ltd. The amounts receivable or payable under the
tax funding agreement are due upon receipt of the
funding advice from the head entity, which is issued
as soon as practical after the end of each financial
year.
a. Current tax
Tax payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in
the consolidated statement of profit or loss and other comprehensive income due to a mix of timing and non-
assessable items. The Group's current tax is calculated using tax rates that have been enacted or substantively
enacted by the end of the reporting period.
b. Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
consolidated financial statements and the corresponding tax base used in the computation of taxable profit.
Deferred tax liabilities (DTLs) are generally recognised for all taxable temporary differences.
Opening
balance
Current year
recognised in
profit or loss
Previously
unrecognised
in profit or loss
Recognised
directly in
equity / recoup
loss against tax
liability
Closing
balance
FY23
$'000
$'000
$'000
$'000
$'000
Deferred tax assets/(liabilities)
Provision for expected credit loss
12,488
253
-
8
12,749
Plant, equipment and software
3,236
(1,860)
-
-
1,376
Employee entitlements
1,649
(100)
(4)
1
1,546
Provision for lease make good
59
-
-
-
59
Provision for discharge fee refund
1,182
-
-
-
1,182
Trail commission payable
3,613
1,564
-
-
5,177
Lease liability
592
35
-
-
627
Capitalised incentive commission
(16,319)
1,302
-
(14)
(15,031)
Deferred bond issue cost
(4,580)
1,374
-
(2)
(3,208)
Derivatives
(614)
2,648
-
(3,475)
(1,441)
Trail commission receivable
(7,229)
-
-
-
(7,229)
Others
3,807
164
-
256
4,227
(2,116)
5,380
(4)
(3,226)
34
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 65
64 |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
NOTE
FY24
FY23
$'000
$'000
Cash at bank and on hand
53,904
22,732
Cash collections accounts (restricted cash)1
817,095
1,062,685
22
870,999
1,085,417
4. Cash and cash equivalents
Reconciliation of profit after tax to the net cash flows from operating activities
Profit after tax
34,790
66,459
Adjustments for
Depreciation and amortisation
2
654
780
Depreciation charge of right-of-use assets
2
1,626
1,643
Amortisation of bond issue costs
2
10,077
10,583
Fair value write-down on financial assets
-
3,600
Fair value movement on swaps
(3,501)
(1,333)
Loan impairment expense
2
11,602
2,240
Net loss on disposal of non-current assets
-
48
Movement in present value of future trail commission income
4,308
10,200
Movement in present value of future trail commission expense
(1,808)
(4,900)
Share-based payments expense
2
198
832
Dividend income from listed equity investments
(277)
(3,780)
(Increase) / Decrease in assets
Trade and other receivables
(1,182)
2,191
Loans and advances
(151,476)
1,935,471
Other assets
(44)
3
Allowance for expected credit losses
(7,437)
(3,437)
Current tax receivable
(799)
(11,499)
Deferred tax assets
254
(2,791)
Increase / (Decrease) in liabilities
Trade and other payables
(1,536)
(2,946)
Interest-bearing liabilities
(1,675)
17,665
Provisions
(1,235)
(3,661)
Net cash (used in) / from operating activities
(107,461)
2,017,368
1 Cash collections account includes monies in the Special Purpose Vehicles and securitisation trusts on behalf of members in those trusts and
various clearing accounts. These funds are not available for operational use.
Reconciliation of liabilities arising from financing activities
Issued capital
Share-based
payment
reserve
Interest-
bearing
liabilities
Lease
liabilities
Total
$'000
$'000
$'000
$'000
$'000
Balance at 1 July 2023
173,531
(945)
14,471,071
9,369
14,653,026
Operating cashflows
-
-
(1,675)
-
(1,675)
Financing cashflows
(1,475)
702
(88,226)
(1,852)
(90,851)
Non-cash movements
1,860
(1,675)
34,412
(149)
34,448
Balance at 30 June 2024
173,916
(1,918)
14,415,582
7,368
14,594,948
Balance at 1 July 2022
176,476
494
16,288,455
11,097
16,476,522
Operating cashflows
-
-
17,665
-
17,665
Financing cashflows
(5,192)
675
(1,831,849)
(1,753)
(1,838,119)
Non-cash movements
2,247
(2,114)
(3,200)
25
(3,042)
Balance at 30 June 2023
173,531
(945)
14,471,071
9,369
14,653,026
RECOGNITION & MEASUREMENT
Cash comprises cash deposits and cash equivalents that are short-term, liquid investments readily convertible to
known amounts of cash, not subject to significant risk of changes in value, and have a maturity of three months or
less.
Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for
varying periods of between one day and three months, depending on the immediate cash requirements of the
Group, and earn interest at the respective short-term deposit rates.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 67
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
FY24
FY23
Current
$'000
$'000
Fee and commission receivable
339
425
Prepayments
3,286
2,377
GST receivable
1,056
447
Sundry receivables
380
223
5,061
3,472
5. Trade and other receivables
RECOGNITION & MEASUREMENT
All receivables are derived in the ordinary course of business. No maturity dates are specified as they are normally
settled within twelve months. There are no long term outstanding receivables as at the reporting date and no
material impairment recognised.
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest rate method, less an allowance for expected credit losses. The credit risk of trade receivables is
considered immaterial as they are due from Australian financial institutions with high credit ratings.
Fee and commission receivable
Comprises trail commission receivables on settlement terms of 30 days. This is initially recognised at the fair value
of the consideration receivable.
Prepayments
Prepayments are recognised when the costs are incurred and amortised over the period in which the economic
benefits from these assets are received.
Sundry receivables
Sundry receivables are receivables arising from various immaterial transactions in the ordinary course of business.
The Group has assessed these receivables as fully recoverable at balance date.
6. Loans and advances
NOTE
FY24
FY23
Gross loans and advances
$'000
$'000
Loans and advances
14,022,237
13,750,051
Capitalised upfront commissions
55,003
50,238
Capitalised trail commissions
80,822
-
Deferred mortgage fees
(3,363)
(5,740)
Unallocated customer repayments
(7,185)
(13,070)
14,147,514
13,781,479
Less: allowance for expected credit losses
(50,009)
(45,844)
22
14,097,505
13,735,635
Current
4,244,254
4,341,166
Non-current
9,903,260
9,440,313
14,147,514
13,781,479
Home
Loan and
NZ lending
Asset
Finance
lending
Total
group
Home
Loan and
NZ lending
Asset
Finance
lending
Total
group
Allowances for expected credit losses
Collective allowance
36,676
9,434
46,110
40,628
2,666
43,294
Specific allowance
1,688
2,211
3,899
1,838
712
2,550
38,364
11,645
50,009
42,466
3,378
45,844
Movement in allowance for ECL
Balance at 1 July
42,466
3,378
45,844
44,758
2,283
47,041
Provided/(written back) for during the year
• Specific
943
7,836
8,779
285
1,375
1,660
• Collective
(3,995)
6,818
2,823
20
560
580
(3,052)
14,654
11,602
305
1,935
2,240
Write-offs
(1,050)
(6,387)
(7,437)
(2,597)
(840)
(3,437)
Balance at 30 June
38,364
11,645
50,009
42,466
3,378
45,844
FY24
$'000
FY23
$'000
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 69
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
RECOGNITION & MEASUREMENT
All loans and advances are initially recognised at fair
value plus directly attributable transaction costs, and
subsequently measured at amortised cost using the
effective interest rate method.
The effective interest rate is the rate that discounts
estimated future cash receipts (including all fees paid
or received that form an integral part of the effective
interest rate, transaction costs and other premiums or
discounts) excluding expected credit losses, through
the expected life of the loans and advances.
During the current financial year, the Group revised
its treatment of ongoing trail commissions payable to
mortgage brokers. The Group recognised a liability
within other financial liabilities equal to the present
value of expected future trail commissions payable
and a corresponding increase in capitalised trail
commissions in loans and advances. See changes in
accounting policy note on page 51.
Gains and losses are recognised in the statement of
comprehensive income when the loans and advances
are derecognised or impaired.
Unallocated customer repayments
Relates to loan repayments received from borrowers
that reside in clearing accounts not yet allocated to a
loan at balance date.
Impairment and provisioning
AASB 9 requires an Expected Credit Loss model (ECL)
at each reporting date to reflect changes in credit risk
since initial recognition of the loans and advances.
Impairment policy of loans and advances are included
in Note 22.
Security properties repossessed
As at 30 June 2024, the Group had exercised their
right to foreclose on 6 residential properties (FY23: 13)
being the security for loans and advances. The Group
intends to sell these properties with the proceeds to
go towards clearing the outstanding balance of the
underlying loans. Mortgages in possession are held as
part of loans and advances, until sold.
NOTE
FY24
FY23
$'000
$'000
Equity in ASX Listed Companies
22
15,145
17,077
Equity in Unlisted Companies
22
3,510
3,510
Loan to related entity
22
-
8,000
18,655
28,587
7. Other financial assets
Current
-
8,000
Non-current
18,655
20,587
18,655
28,587
Equity in Unlisted Companies
Investments that are not traded in an active market,
however classified as fair value through profit or
loss (FVTPL) are disclosed at fair value at the end
of each reporting period. The fair value assessment
conducted on the unlisted shares, included assessing
other market conditions on the current and future
operating models. The fair value assessments
include comparisons against forecasted operating
performance at time of investment. The valuation
methodology for these investments is disclosed in
Note 22.
Loan to related entity
The short term interest bearing loan provided to a
related party was fully repaid during FY24. Interest
was charged on arm’s length terms. Interest income of
$0.9 million for the year ended 30 June 2024 (FY23:
$0.8 million) was fully received and is presented within
interest income on loans and advances in Note 1.
FY24
FY23
Lease - Buildings
$'000
$'000
Balance at 1 July
7,323
8,959
Modifications
(156)
-
Depreciation
(1,626)
(1,643)
Foreign exchange
13
7
Balance at 30 June
5,554
7,323
8. Right-of-use assets
Lease - Buildings
Right-of-use assets at cost
14,100
14,244
Less: accumulated depreciation
(8,546)
(6,921)
Total right-of-use assets
5,554
7,323
Equity in ASX Listed Companies
Equity investments in ASX listed companies are investments the Group intends to hold for long term strategic
purposes. As permitted by AASB 9, the Group designated these investments at the date of initial application as
measured at fair value through other comprehensive income. The accumulated fair value reserve related to these
investments will not be reclassified to profit or loss. Dividends will be recognised in profit or loss as other income
when the Group’s right to receive payment is established.
Right-of-use assets
The Group leases offices with lease terms between 3
to 8 years. Right-of-use assets are initially measured
at cost and comprise the following:
• the amount of the initial measurement of lease
liability;
• any lease payments made at or before the
commencement date less any lease incentives
received;
• any initial direct costs; and
• restoration costs.
The right-of-use asset is subsequently depreciated
using the straight-line method from the
commencement date to the end of the lease term,
unless the lease transfers ownership of the underlying
asset to the Group by the lease term or the cost of
the right-of-use asset reflects that the Group will
exercise a purchase option. In that case the right-
of-use asset will be depreciated over the useful life
of the underlying asset, which is determined on the
same basis as those of property and equipment. In
addition, the right-of-use asset is periodically reduced
by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability. Depreciation of
right-of-use asset is recognised in the consolidated
statement of profit or loss.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
9. Plant and equipment
Computer
equipment
Office
furniture
Operating lease
equipment
Leasehold
improvement
Total
Carrying amounts of
$'000
$'000
$'000
$'000
$'000
Balance at 1 July 2023
561
60
258
441
1,320
Additions
68
-
-
-
68
Depreciation expense
(248)
(16)
(131)
(259)
(654)
Foreign exchange
1
-
-
-
1
Balance at 30 June 2024
382
44
127
182
735
Balance at 1 July 2022
715
77
435
701
1,928
Additions
173
2
13
-
188
Disposals
(24)
(2)
-
-
(26)
Depreciation expense
(285)
(17)
(190)
(260)
(752)
Foreign exchange
(18)
-
-
-
(18)
Balance at 30 June 2023
561
60
258
441
1,320
RECOGNITION & MEASUREMENT
Plant and equipment stated at cost less accumulated depreciation and impairment losses.
Depreciation and amortisation
Depreciation is recognised to write off the cost or
valuation of assets less their residual values over
their useful lives, using the straight-line method.
The estimated useful lives, residual values and
depreciation method are reviewed at the end of each
reporting period, with the effect of any changes in
estimate accounted for on a prospective basis.
The following useful lives are used in the calculation of
depreciation:
Years
Computer equipment
3-4
Office furniture
10
Operating lease equipment
3-7
Leasehold improvement
For life of the lease
Derecognition
An item of plant and equipment is derecognised upon
disposal or when no future economic benefits are
expected to arise from the continued use of the asset.
Any gain or loss arising on the disposal or retirement
of an item of plant and equipment is determined as
the difference between the sale proceeds and the
carrying amount of the asset and is recognised in
profit or loss.
Impairment
At each reporting date, the Group reviews the carrying
amounts of plant and equipment to determine whether
there is any indication that those assets have suffered
an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated to
determine the extent of the impairment loss (if any).
10. Other assets
FY24
FY23
$'000
$'000
Reinsurance claim receivable
596
4,455
Other
274
228
870
4,683
Current
274
228
Non-current
596
4,455
870
4,683
Reinsurance claim receivable
Prime Insurance Group Limited was purchased as part of the RHG Mortgage Corporation Limited (RHG) acquisition
in 2014. Its sole purpose is to provide mortgage insurance and reinsurance facilities for the RHG mortgage assets
and process any shortfall claims received. RHG loans ceased origination in FY14, and the portfolio is in run-off.
The reinsurance claim receivable is available to utilise against the reinsurance claim reserve amount in Note 16.
FY24
FY23
Goodwill
$'000
$'000
Balance at 1 July
28,379
27,430
Additional amount recognised from business combination
-
949
Balance at 30 June
28,379
28,379
11. Goodwill and intangible assets
Goodwill
Goodwill arising on an acquisition of a business
is carried at cost as established at the date of
acquisition of the business (less accumulated
impairment losses, if any).
Impairment testing
At 30 June 2024, the Group has performed goodwill
impairment testing, which included consideration
of the impact of the macroeconomic environment.
Goodwill of $21.7 million has been allocated for
impairment assessment purposes to the Home Loan
Lending Business (HLLB) cash-generating unit (CGU).
This CGU is expected to benefit from the synergies
of the business combination to which that goodwill
relates and is the lowest level at which goodwill is
allocated. RAF goodwill of $6.7 million, including the
goodwill recognised from RAF’s investment in 23
Degrees Capital Partners Pty Ltd, is considered a
separate CGU and has been separately assessed for
impairment testing.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 73
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
A CGU to which goodwill has been allocated is tested
for impairment annually, or more frequently when
there is an indication that the unit may be impaired.
If the recoverable amount of the CGU is less than
its carrying amount, the impairment loss is allocated
first to reduce the carrying amount of any goodwill
allocated to the unit and then to the other assets
of the unit pro rata based on the carrying amount
of each asset in the unit. Any impairment loss for
goodwill is recognised directly in profit or loss.
An impairment loss recognised for goodwill is not
reversed in subsequent periods.
Recoverable amount of the asset
The recoverable amount is equal to the greater of:
• fair value less costs to sell; and
• value in use (‘VIU’).
The management have used the VIU methodology to
estimate the recoverable amount as there is no readily
available market information for specific business
sales of an equivalent sized business to the HLLB and
RAF CGUs to estimate the fair value less cost to sell.
The VIU calculation requires management to estimate
future cash flows expected to arrive from the CGU
and a suitable discount rate to calculate present value.
Indicators of impairment
The minimum indicators of impairment have been
considered by management. These include both
internal and external sources of information such as:
• significant changes (historical and future) in
the market, economic, legal or technological
environment which would have an adverse impact
on the Group;
• decline in market capitalisation below the carrying
value of net assets;
• interest rate changes which impact the discount
rate used in modelling;
• evidence of a worsening financial position;
• plans to discontinue operations; and
• macro economic conditions.
As at 30 June 2024, Management observed the
market capitalisation of the Group being lower than
the carrying amount of the Group’s net assets. Whilst
this is considered an indicator of impairment, the
impairment assessment performed by management
indicates the recoverable amounts of all CGU’s
remains higher than the carrying amounts resulting in
no impairment in FY24.
There were no other indicators of impairment as at 30
June 2024.
Inputs to impairment calculations
Cash flow projections
For VIU calculations, cash flow projections are based
on strategic objectives and business forecasts
prepared by management and approved by the Board.
Cash flow projections are four years in length and a
terminal growth rate beyond this has been applied.
Impairment assessment
In assessing VIU, the estimated future cash flows are
discounted to their present value using a discount rate
that reflects current market assessments of the time
value of money and the risks specific to the CGU.
Furthermore, each unit or group of units to which the
goodwill is allocated shall:
• represent the lowest level at which the goodwill is
monitored for internal management purposes; and
• not exceed the operating segments.
The allocation of goodwill to these CGU’s is
considered appropriate.
Key judgements and assumptions
The key assumptions used for assessing the recoverable amount of the CGUs are as below:
FY24
FY23
HLLB
RAF
HLLB
RAF
Profit growth range for 4-year period (pa)
-3% to +24 %
+5 to +513%
+2.5%
+10 to +25%
Discount rate (post-tax)
11.5%
11.5%
11.5%
11.5%
Terminal growth rate
+2.0%
+2.0%
+2.0%
+2.0%
The post-tax discount rate of 11.5% has been
determined by estimating the cost of equity that
applies to the HLLB and RAF CGUs.
Management conducted the following when testing
the impairment of goodwill:
• revised budgets, forecasts and other assumptions
from previous impairment testing to reflect
the economic conditions at the balance date,
especially to address increased risk and
uncertainty;
• considered the impact of macroeconomic
conditions and considered outcomes where
future cash flows are reduced or operating costs
increase (including interest rate risk and loan book
growth).
In assessing the VIU for goodwill impairment
assessment, the potential impact of macroeconomic
conditions including rising interest rates and inflation
on cash flows and profit growth have been considered
under different scenarios:
1) Base case: Current management view of
macroeconomic environment:
• Loan volume and margins: Growth trajectory in
line with current market conditions for HLLB and
increasing growth for RAF in initial years in line
with expected business growth in this segment.
• Costs: Growth based on CPI assumptions and
investments required to support organic growth of
the business.
2) Stress scenario: Assumes severe macroeconomic
downturn resulting in a sustained period of reduced
profitability growth over a 4 year period. The stress
scenario indicated sufficient headroom remains for
goodwill impairment purposes.
The volatility in financial markets and the current
macro economic environment introduces challenges
to impairment testing. A second layer of stress testing
was added with discount rates ranging from 11%-
15% which were applied to the base case and stress
scenarios. The full sensitivity range is outlined as
follows:
HLLB Headroom ($ millions)
Discount rate
11.0%
11.5%
12.0%
14%
15.0%
Base Case
151
122
96
15
(16)
Stress Test Case
67
44
22
(44)
(70)
RAF Headroom ($ millions)
Discount rate
11.0%
11.5%
12.0%
14%
15.0%
Base Case
381
358
337
273
248
Stress Test Case
127
120
113
92
84
The calculated recoverable amount of the CGUs will
start falling below the recorded carrying value only at
or after a discount rate of 14%.
Impairment charge
Management is of the opinion that potential
impacts that could be introduced from a change in
the economic environment have been adequately
considered for goodwill impairment testing purposes
at 30 June 2024. Based upon the impairment testing
performed, there is no impairment charge for FY24
(FY23: Nil).
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 75
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
NOTE
FY24
FY23
Current
$'000
$'000
Revenue collected in advance
6,694
2,234
Commissions payable
5,799
644
Accruals
9,793
14,594
Other creditors
4,906
9,674
22
27,192
27,146
12. Trade and other payables
RECOGNITION & MEASUREMENT
Trade creditors and other payables are generally
settled within 30 day terms and are unsecured. Trade
creditors and other payables are carried at amortised
cost and represent liabilities for goods and services
provided to the Group prior to the end of the financial
year, are unpaid, and arise when the Group becomes
obliged to make future payments in respect of the
purchase of these goods and services.
Revenue collected in advance
Relates to interest income on loans and advances
collected in advance.
Commissions payable
Relates to upfront and trail commission payable to
aggregators and brokers.
Accruals and other creditors
Accruals and other creditors are accrued fees
and expenses and unsecured payables relating to
expenses arising in the ordinary course of business.
13. Interest-bearing liabilities
NOTE
FY24
FY23
$'000
$'000
Debt securities on issue
14,082,694
14,125,154
Corporate debt facilities
39,000
50,000
Issuance facilities
293,887
295,916
22
14,415,581
14,471,070
Current
4,324,674
4,558,387
Non-current
10,090,907
9,912,683
14,415,581
14,471,070
RECOGNITION & MEASUREMENT
All borrowings are initially recognised at fair value of
the consideration received less directly attributable
transaction costs, and subsequently measured at
amortised cost using the effective interest method.
Amortised cost is calculated by taking into account
any fees paid or received between parties to the
contract that are an integral part of the effective
interest rate, transaction costs, and all other premiums
or discounts on acquisition, over the period to
maturity.
Gains or losses are recognised in the statement of
profit or loss when the liabilities are derecognised.
For further detail on the amortised cost basis of
accounting see Note 1 and 2. Details of the Group’s
interest-bearing liabilities are set out in Note 22.
13.1. Debt securities on issue
Warehouse facilities
The warehouse facilities in Special Purpose Vehicles
(SPVs) provide the initial duration financing of
loans and advances to customers. The security for
advances under these facilities is a combination
of fixed and floating charges over all assets of the
warehouse SPVs, including the mortgage security. If
the warehouse facility is not renewed or should there
be a default under the existing terms and conditions,
the warehouse facility funder will not have a right of
recourse against the remainder of the Group.
The total capacity for the 16 warehouse facilities at 30
June 2024 was AUD 8.5 billion (equivalent) (FY23: 14
warehouse facilities; AUD 8.3 billion (equivalent)), of
which AUD 1.8 billion (equivalent) was undrawn at 30
June 2024.
During the financial year there were no material
breaches to the warehouse agreements. All
warehouse facilities were renewed, on or before their
maturity date.
Bonds (RMBS and ABS)
Bonds issued by the securitisation trusts provide
duration funding for loans and advances originated by
the Group. The bond notes generally have a legal final
maturity of 31 years from issue, and a call option of up
to 5 years post issuance.
The bondholder’s security is a combination of
fixed and floating charges over all assets of the
securitisation trust. Credit losses arising from the
bonds will not result in the bondholders having a right
of recourse against the Group (as Originator, Manager
or Servicer).
During the year ended 30 June 2024, AUD 4.1 billion
(equivalent) of new bonds were issued (FY23: AUD
2.5 billion (equivalent)). These bond issuances paid
down warehouse facilities creating capacity to fund
new loans. During the financial year, there were no
breaches to the terms of the bonds.
13.2. Corporate debt facility
At 30 June 2024, the Group had $39 million (FY23:
$50 million) in corporate debt securities (Secured
Capital Note) maturing in November 2024. The $39
million liability is disclosed under corporate debt
facilities.
As at 30 June 2024, the Company had a $30 million
corporate facility maturing in November 2025. The
Group had an undrawn balance of $30 million at 30
June 2024 (FY23: $30 million). In accordance with
the terms of the Group’s corporate debt facilities, the
Group is required to comply with certain covenants.
During the entire year and as at 30 June 2024, the
Group was compliant with these covenants.
The corporate debt facilities are secured by a first-
ranking charge over the beneficial rights to the trust’s
residual income of the Group. See Note 23.7 for
further detail.
13.3. Issuance facilities
The Group maintains a series of subsidiary SPV’s for
the purpose of raising financing for its RMBS-related
credit risk retention (“CRR”) obligations. CRR is a
mandatory requirement for the Group’s RMBS issuance
activities in the U.S., European, Japanese and U.K.
jurisdictions where, in general, the Group is required
to hold an economic interest of at least 5% in value
of an RMBS issuance. The subsidiary SPV’s hold a 5%
vertical strip of bonds of an individual RMBS issuance
and raises secured financing from banks and credit
investors.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 77
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
FY24
FY23
Lease liabilities included in the Statement of Financial Position
$'000
$'000
Balance at 1 July
9,369
11,097
Addition / modification
(156)
12
Interest incurred
306
411
Payment of lease liabilities
(2,158)
(2,164)
Foreign exchange
7
13
Balance at 30 June
7,368
9,369
14. Lease liabilities
Current
1,751
1,703
Non-current
5,617
7,666
7,368
9,369
Amounts recognised in Statement of Comprehensive Income
Depreciation charge of right-of-use assets
1,626
1,643
Interest expense on lease liabilities
306
411
Amounts recognised in Statement of Cash Flows
Interest paid
(306)
(411)
Payment of lease liabilities
(1,852)
(1,753)
The lease liability is presented as a separate line in the
consolidated statement of financial position.
The lease liability is subsequently measured by
increasing the carrying amount to reflect interest on
the lease liability (using the effective interest method)
and by reducing the carrying amount to reflect the
lease payments made.
The Group remeasures the lease liability and makes a
corresponding adjustment to the related right-of-use
asset whenever:
• The lease term has changed or there is a
significant event or change in circumstances
resulting in a change in the assessment of
exercise of a purchase option, in which case the
lease liability is remeasured by discounting the
revised lease payments using a revised discount
rate.
• The lease payments change due to changes in an
index or rate or a change in expected payment
under a guaranteed residual value, in which cases
the lease liability is remeasured by discounting
the revised lease payments using an unchanged
discount rate.
• A lease contract is modified and the lease
modification is not accounted for as a separate
lease, in which case the lease liability is
remeasured based on the lease term of the
modified lease by discounting the revised lease
payments using a revised discount rate at the
effective date of the modification.
The Group did not make any such adjustments during
the year presented.
Variable rents that do not depend on an index or
rate are not included in the measurement of the
lease liability and the right-of-use asset. The related
payments are recognised as an expense in the period
in which the event or condition that triggers those
payments occurs and are included in “Other expenses”
in profit or loss (see note 2).
The Group has applied judgement to determine the
lease term for some lease contracts in which it is a
lessee that include renewal options. The assessment
of whether the Group is reasonably certain to
exercise such options impacts the lease term, which
significantly affects the amount of lease liabilities and
right-of-use assets recognised.
14.1. Leases
The Group assesses whether a contract is or contains
a lease, at inception of the contract. The Group
recognises a right-of-use asset and a corresponding
lease liability with respect to all lease arrangements
in which it is the lessee, except for short-term leases
(defined as leases with a lease term of 12 months
or less) and leases of low value assets. For these
leases, the Group recognises the lease payments as
an operating expense on a straight-line basis over
the term of the lease unless another systematic
basis is more representative of the time pattern in
which economic benefits from the leased assets are
consumed.
The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted by using the rate
implicit in the lease. If the rate cannot be readily
determined, the lessee uses its incremental borrowing
rate.
Lease payments included in the measurement of the
lease liability comprise:
• Fixed lease payments (including in-substance
fixed payments), less any lease incentives
receivable;
• Variable lease payments that depend on an index
or rate, initially measured using the index or rate at
the commencement date;
• The amount expected to be payable by the lessee
under residual value guarantees;
• The exercise price of purchase options, if the
lessee is reasonably certain to exercise the
options; and
• Payments to penalties for terminating the lease, if
the lease term reflects the exercise of an option to
terminate the lease.
15. Other financial liabilities
NOTE
FY24
FY23
Present value of future trail commission payable
$'000
$'000
White label loans
5,042
6,850
On balance sheet loans
80,822
-
22
85,864
6,850
Current
22,342
2,267
Non-current
63,522
4,583
85,864
6,850
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 79
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
Exposure to run-off rate risk - Sensitivity analysis
Management does not expect the run-off rate to change in excess of 10% positive or 10% negative of the rates
revealed through an analysis of the Group’s historical loan data. The change estimate is calculated based on
historical movements of the prepayment rate. The effect from changes in prepayment rates, with all other variables
held consistent, is as follows:
RECOGNITION & MEASUREMENT
The Group makes trail commission and service
provider fee payments to brokers and mortgage
originators for originating on balance sheet and
white label loans based on individual loan balances
outstanding and the loan continuing to perform.
White label loans
Fair value of future trail commission payable was
recognised on the origination of white label loans.
This represents the NPV of the expected future
trail commission payable under the origination and
management agreement, less ongoing servicing costs
not covered by transaction fees.
On balance sheet loans
On initial recognition of a mortgage loan at origination
the Group recognises a trail commission financial
liability which is recognised based on net present
value of expected future trailing commission payable
to brokers.
The Group’s estimate of net present value requires
judgement as to the assumptions including expected
run off rate and discount rate. Subsequent to initial
recognition the trail commission liability is measured
at amortised cost.
A corresponding trail commission asset is capitalised
to the loan as a transaction cost.
Key judgements and assumptions
Trailing commissions are paid to brokers over the life
of loans based on the loan book balance outstanding,
if the respective loans are in good order and not in
default. The discounted cash flow valuation of trail
commission liabilities is classified as level 3 in the fair
value measurement hierarchy.
The key assumptions underlying the valuation or trail
commission payable to brokers as at 30 June 2024 is
summarised below:
FY24
Impact on trail commission liability - Increase / (Decrease)
$'000
+ 10bps
(6,139)
- 10bps
7,027
16. Other liabilities
FY24
FY23
Non-current
$'000
$'000
Reinsurance claim reserve
596
4,455
596
4,455
The reinsurance claim reserve offsets with the reinsurance claim receivable amount in Note 10. Reinsurance claim
reserve is measured at the value that is expected to be paid for incurred claims.
Employee
benefits
Make
good
Discharge fee
refund
Other
Total
$'000
$'000
$'000
$'000
$'000
Balance at 1 July 2023
4,647
447
1,695
550
7,339
Provision recognised/(released)
2,371
-
-
329
2,700
Provision utilised
(1,966)
-
(1,549)
(420)
(3,935)
Balance at 30 June 2024
5,052
447
146
459
6,104
FY24
FY23
Average loan life (range) / Annualised run-off
Prime/Near Prime
17% - 22%
17% - 22%
Run-off is a combination of discharges,
prepayments and scheduled loan
repayments.
Non-conforming
26% - 32%
26% - 32%
NZ
26% - 32%
26% - 32%
Discount rate
Discount rate
9.3%
9.1%
This is the rate that reflects the current
market assessment of the time value of
money and the risks that are specific to the
estimated future cash flows.
17. Provisions
FY24
FY23
$'000
$'000
Employee benefits
5,053
4,647
Office make good
447
447
Discharge fee refund
146
1,695
Other
458
550
6,104
7,339
Current
5,542
6,415
Non-current
562
924
6,104
7,339
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 81
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
Provisions are recognised when:
• the Group has a present obligation (legal or
constructive) as a result of a past event;
• it is probable that the Group will be required to
settle the obligation; and
• a reliable estimate can be made of the amount of
the obligation.
The amount recognised as a provision is the best
estimate of the consideration required to settle the
present obligation at the end of the reporting period,
taking into account the risks and uncertainties
surrounding the obligation. When a provision is
measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present
value of those cash flows (when the effect of the time
value of money is material).
17.1. Employee benefits
A liability is recognised for benefits accruing to
employees where the liability can be measured reliably
and payment is probable, in respect of:
• wages and salaries;
• annual leave;
• long service leave; and
• on-costs relating to the above.
Liabilities recognised in respect of employee
benefits expected to be settled within 12 months,
are measured at their nominal values using the
remuneration rate expected to apply at the time of
settlement.
Liabilities recognised in respect of employee benefits
which are not expected to settle within 12 months are
measured at the present value of the estimated future
cash outflows to be made by the Group in respect of
services provided by employees up to the reporting
date.
The liability for long service leave is recognised in the
provision for employee benefits. It is measured as the
present value of expected future payments for the
services provided by employees up to the reporting
date.
Expected future payments are discounted using
market yields at the reporting date on high quality
corporate bonds with terms to maturity that match,
as closely as possible, the estimated future cash
outflows.
17.2. Office make good
Where a condition of the Group’s lease premises is to
return the property in its original condition at the end
of a lease term. The Group recognises a provision for
the expected cost of the refurbishment at the end of
the lease.
17.3. Discharge fee refund
The Group conducted a governance review of loan
agreements during FY22, where the Group identified it
had potentially overcharged a segment of customers
discharge fees from 2006 to 2017. A liability was
recognised for the likely economic outflow to refund
these discharge fees, accrued interest and associated
cost involved in processing the refunds to the affected
customers. Refunds to customers have occurred
throughout FY23 and FY24.
17.4. Other
This represents the restructuring provision recognised
in association with the decision taken to cease
origination of new loans in New Zealand.
RECOGNITION & MEASUREMENT
Resimac's mission
is to be a customer
focused organisation,
leveraging technology
and data analytics
coupled with
expansion of our
sustainability and
Environmental, Social
and Governance
(ESG) footprint.
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
KEY NUMBERS & POLICIES
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 83
82 |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAPITAL
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAPITAL
For the year ended
30 June 2024
18. Capital management
The Group’s capital management objectives
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while
maximising the return to stakeholders through the optimisation of the debt and equity balance.
The Group operates a warehouse for securitisation funding model for its lending business and as such makes
decisions on the amount of capital invested in the notes or warehouses based on alternate sources of funding and
the expected return on amounts invested and with regard to the company's cost of capital.
The capital structure of the Group consists of net debt (borrowings net of cash balances) and equity of the Group
(comprising issued capital, reserves and retained earnings).
The Group is not subject to any externally imposed capital requirements.
The Board is responsible for monitoring and approving the capital management framework within which
management operates. The purpose of the framework is to prudently manage capital whilst optimising the debt and
equity structure.
NOTE
FY24
FY23
Equity
$'000
$'000
Issued capital
20
112,375
111,990
Reserves
20
(23,686)
(19,589)
Retained earnings
20
327,361
322,872
416,050
415,273
Capital.
19. Dividends
FY24
FY23
Declared and paid during the period (fully-franked at 30 percent)
$'000
$'000
Final dividend for FY23: $0.04 (FY22: $0.04)
16,0271
16,1161
Interim dividend for FY24: $0.035 (Interim FY23: $0.04)
14,0742
16,0572
30,101
32,173
Proposed and unrecognised as a liability (fully-franked at 30 percent
Final dividend for FY24: $0.035 (FY23: $0.04)
14,000
16,277
14,000
16,277
Franking credit balance
Franking credits available for future years at 30% adjusted for the
payment of income tax and dividends receivable or payable.
123,304
95,073
Impact on the franking account of dividends proposed before the
financial report was issued but not recognised as a distribution to equity
holders during the period.
(6,000)
(6,976)
1 The final FY23 dividend paid is net of: $72,466 (final FY22: $122,286) dividend paid to treasury shares held by the Group, eliminated on
consolidation and dividend paid in relation to non-controlling interest of $34,300.
2 The interim FY24 dividend paid is net of: $33,062 (interim FY23: $110,864) dividend paid to treasury shares held by the Group, eliminated on
consolidation and dividend paid in relation to non-controlling interest of $107,114.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 85
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAPITAL
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAPITAL
20.1. Issued capital
No. of shares -
Thousands
$'000
Balance at 1 July 2022
406,912
180,998
Share buyback cancelled shares (average price: $0.98 per share)
(5,290)
(5,192)
Balance at 30 June 2023
401,622
175,806
Share buyback cancelled shares (average price: $0.91 per share)
(1,622)
(1,475)
Balance at 30 June 2024
400,000
174,331
Fully paid ordinary shares, which have no par value, carry one vote per share and carry a right to dividends.
No. of shares -
Thousands
$'000
Balance at 1 July 2022
2,925
4,522
Allocation of shares under LTI#2
(785)
(1,485)
Allocation of shares under Employee Share Plan
(200)
(305)
Allocation of shares under LTI#1 Tranche 3
(300)
(457)
Balance at 30 June 2023
1,640
2,275
Allocation of shares under LTI#2
(1,080)
(1,535)
Allocation of shares under Employee Share Plan
(227)
(325)
Balance at 30 June 2024
333
415
20.2. Treasury shares
Treasury shares held in Resimac Group Ltd by Resimac EST Pty Ltd as Trustee for the Resimac Group Limited
Employee Share Trust, are for the benefit of eligible employees of the Resimac Group Employee Share Option and
Rights Plan. Shares issued to employees are recognised on a first-in-first-out basis.
FY24
FY23
$'000
$'000
Issued capital
174,331
175,806
Treasury shares
(415)
(2,275)
Share capital
173,916
173,531
Reverse acquisition reserve1
(61,541)
(61,541)
112,375
111,990
20. Issued capital and reserves
1 As a result of reverse acquisition accounting in the Resimac/Homeloans merger, an account was created as a component of equity. This account
called ‘Reverse acquisition reserve’ is similar in nature to share capital. The Reverse acquisition reserve is not available for distribution.
Issued capital as at 30 June 2024 was $174,330,944 (400,000,000 ordinary shares).
Movements in issued capital during the year relate to the acquisition of 1,622,340 shares for $1,474,744 (average
price of $0.91 per share) under the Group’s on market share buyback scheme. These shares were cancelled prior to
30 June 2024.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 87
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20.4. Nature and purpose of reserves
Cash flow hedge reserve
The cash flow hedging reserve represents the
cumulative effective portion of gains or losses arising
on changes in fair value of hedging instruments
entered into for cash flow hedges. The cumulative
gain or loss arising on changes in fair value of the
hedging instruments will be reclassified to profit or
loss only when the hedged transaction affects the
profit or loss, or included as a basis adjustment to the
non-financial hedged item, consistent with the Group’s
accounting policy.
Foreign currency translation reserve
Exchange differences relating to the translation of the
results and net assets of the Group's New Zealand
operations from its functional currency to the Group's
presentation currency are recognised directly in other
comprehensive income and accumulated in the foreign
currency translation reserve.
Share-based payment reserve
The share-based payments reserve is used to
recognise the value of equity-settled share-based
payments provided to employees, including KMP, as
part of their remuneration. Refer to Note 31 for further
details of these plans.
Other reserve
Other reserves represent the recognition made
directly in equity for the difference between the
amount by which the Non-Controlling Interest (NCI)
was adjusted, and the fair value of consideration paid
on Resimac’s acquisition of the remaining 40% shares
of RAF on 1 February 2021.
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAPITAL
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CAPITAL
FY24
FY23
Profit attributable to ordinary equity holders of the parent ($'000)
34,590
66,446
WANOS1 used in the calculation of basic EPS (shares, thousands)
399,664
402,215
Dilutive effect of share options
563
1,054
WANOS1 used in the calculation of diluted EPS (shares, thousands)
400,227
403,269
21. Earnings per share
1 Weighted average number of shares.
Earnings per share
Basic (cents per share)
8.65
16.52
Diluted (cents per share)
8.64
16.48
Calculation of earnings per share
21.1. Basic earnings per share
Basic earnings per share is calculated as net profit
attributable to the ordinary equity holders of the
parent, adjusted to exclude any costs of servicing
equity (other than dividends), divided by the WANOS
adjusted for any bonus element
21.2. Diluted earnings per share
Diluted earnings per share is calculated by:
• dividing the net profit attributable to ordinary
equity holders of the parent; by the
• WANOS outstanding during the year; plus
• the WANOS that would be issued on the
conversion of all the dilutive potential ordinary
options or rights into ordinary shares.
20.3. Reserves (net of income tax) and retained earnings
Retained
earnings
Cash flow
hedge
reserve
Foreign
currency
translation
reserve
Fair value
reserve
Share-
based
payment
reserve
Other
reserve
Non-
controlling
interest
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Balance at 1 July 2023
322,872
(4,490)
(502)
(5,670)
(945)
(7,982)
110
Profit after tax
34,590
-
-
-
-
-
201
Changes in fair value of cash flow
hedges, net of tax
-
(523)
-
-
-
-
-
Currency translation differences
-
-
(219)
-
-
-
-
Fair value movement on investment
through OCI, net of tax
-
-
-
(2,382)
-
-
-
Equity dividends
(30,101)
-
-
-
-
-
-
Share-based payments
-
-
-
-
(973)
-
-
Balance at 30 June 2024
327,361
(5,013)
(721)
(8,052)
(1,918)
(7,982)
311
RESERVES
Balance at 1 July 2022
288,599
(12,631)
(1,291)
(4,056)
494
(7,982)
-
Acquisition of non-controlling interest
-
-
-
-
-
-
97
Profit after tax
66,446
-
-
-
-
-
13
Changes in fair value of cash flow
hedges, net of tax
-
8,141
-
-
-
-
-
Currency translation differences
-
-
789
-
-
-
-
Fair value movement on investment
through OCI, net of tax
-
-
-
(1,614)
-
-
-
Equity dividends
(32,173)
-
-
-
-
-
-
Share-based payments
-
-
-
-
(1,439)
-
-
Balance at 30 June 2023
322,872
(4,490)
(502)
(5,670)
(945)
(7,982)
110
FY24
FY23
$'000
$'000
Gross change in fair value
168,607
69,421
Reclassification from cash flow hedge reserve to profit or loss
(169,335)
(57,803)
Tax impact
205
(3,477)
Balance at 30 June
(523)
8,141
The cash flow in fair value of cash flow hedges (net of tax) includes:
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 89
88 |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
RISK
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
RISK
For the year ended
30 June 2024
22. Financial assets and financial liabilities
The Group holds the following financial instruments:
Risk.
Basis of
measurement
NOTE
FY24
FY23
Financial assets
$'000
$'000
Cash and cash equivalents
Amortised cost
4
870,999
1,085,417
Trade and other receivables (excluding prepayments)
Amortised cost
5
1,775
1,095
Loans and advances
Amortised cost
6
14,097,505
13,735,635
Equity in ASX Listed Companies
FVOCI
7
15,145
17,077
Equity in Unlisted Companies
FVTPL
7
3,510
3,510
Loans to related party
Amortised cost
7
-
8,000
Derivative financial assets – Cross currency swaps
FVCHR
23
41,545
4,474
Derivative financial assets – Interest rate swaps
FVCHR
23
2,153
4,760
Derivative financial assets – Interest rate swaps
FVTPL
23
3,899
15,962
15,036,531
14,875,930
Financial liabilities
Trade and other payables
Amortised cost
12
27,192
27,146
Interest-bearing liabilities
Amortised cost
13
14,415,581
14,471,070
Lease liabilities
Amortised cost
14
7,368
9,369
Present value of trail commission payable
Amortised cost
15
85,864
6,850
Derivative financial liabilities – Cross currency swaps
FVCHR
23
135,029
-
Derivative financial liabilities – Interest rate swaps
FVCHR
23
610
-
Derivative financial Liabilities – Overnight index swaps
FVTPL
23
-
426
14,671,644
14,514,861
22.1. Fair values measurements and valuation processes
22.1.1. Fair value hierarchy
The different levels have been defined as follows:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The following assets and liabilities are measured at fair value by the Group for financial reporting purposes:
Fair value
hierarchy
Valuation technique(s)
and key input(s)
FY24
FY23
Financial assets
$'000
$'000
Equity in ASX Listed
Companies
Level 1
Most recent traded price and other available
market information.
15,145
17,077
Equity in Unlisted
Companies
Level 3
Acquisition value and financial performance
since acquisition adjusted for changes in
market and macroeconomic factors.
3,510
3,510
Interest rate swaps
Level 2
Discounted cash flow.
Forward interest rates, contract interest rates.
6,052
20,722
Cross currency swaps
Level 2
Discounted cash flow.
Forward interest rates, contract interest rates.
41,545
4,474
Financial liabilities
Interest rate swaps
Level 2
Discounted cash flow.
Forward interest rates, contract interest rates.
610
-
Cross currency swaps
Level 2
Discounted cash flow.
Forward interest rates, contract interest rates.
135,029
-
Overnight index swaps
Level 2
Discounted cash flow.
Forward interest rates, contract interest rates.
-
426
In the year to 30 June 2024 there has been no change in the fair value hierarchy or the valuation techniques applied
to any of the balances above.
For further information on the use of derivatives refer to Note 23 Financial risk management.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 91
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22.1.2. Fair value of financial assets and liabilities
that are not measured at fair value (but fair value
disclosures are required)
With the exception of the future trail commission
receivable and payable and fixed interest rate
loans that are initially recognised at fair value and
subsequently carried at amortised cost, management
consider that the carrying amounts of financial assets
and liabilities recognised in the consolidated financial
statements approximate their fair values.
22.2. Financial assets and liabilities
22.2.1. Recognition and initial measurement
All financial assets and financial liabilities are initially
recognised when the Group becomes a party to the
contractual provisions of the instrument.
A financial asset (unless it is a trade receivable
without a significant financing component) or finance
liability is initially measured at fair value plus, for
an item not at FVTPL, transaction costs that are
directly attributable to its acquisition or issue. A trade
receivable without a significant financing component
is initially measured at the transaction price.
22.2.2. Classification and subsequent measurement
22.2.2.1. Financial assets
On initial recognition, a financial asset is classified as
measured at:
• amortised cost
• fair value through other comprehensive income
(FVOCI) – debt instrument
• fair value through other comprehensive income
(FVOCI) – equity instrument
• fair value through cash flow hedge reserve
(FVCHR) – cash flow hedges
• fair value through profit or loss (FVTPL)
Financial assets are not reclassified subsequent to
their initial recognition unless the Group changes its
business model for managing financial assets, in which
case all affected financial assets are reclassified on
the first day of the first reporting period following the
change in the business model.
A financial asset is measured at amortised cost if
it meets both of the following conditions and is not
designated as at FVTPL:
• it is held within a business model whose objective
is to hold assets to collect contractual cash flows;
and
• its contractual terms give rise on specified dates
to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets
both of the following conditions and is not designated
as at FVTPL:
• it is held within a business model whose objective
is achieved by both collecting contractual cash
flows and selling financial assets; and
• its contractual terms give rise on specified dates
to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
On initial recognition of an equity investment that is
not held for trading, the Group may irrevocably elect
to present subsequent changes in the investment’s fair
value in OCI. This election is made on an investment-
by-investment basis.
See Note 23.3 for recognition and measurement of
derivatives designated as cash flow hedges.
All financial assets not classified as measured at
amortised cost or FVOCI or FVCHR as described
above are measured as FVTPL. This includes the
Group’s overnight index swaps and majority of interest
rate swaps derivative financial assets and investment
securities. On initial recognition, the Group may
irrevocably designate a financial asset that otherwise
meets the requirements to be measured at amortised
cost or at FVOCI or at FVCHR as at FVTPL if doing so
eliminates or subsequently reduces an accounting
mismatch that would otherwise arise.
22.2.2.2. Financial assets – Business model
assessment
The Group determines the business model at the
level that reflects how groups of financial assets
are managed. In determining the business model,
all relevant evidence that is available at date of
assessment is used including:
• how the performance of the financial assets held
within that business model are evaluated and
reported to the Group’s KMP;
• the risks that affect the performance of the
business model (and the financial assets held
within that business model) and, in particular, the
way in which those risks are managed; and
• how managers of the business are compensated
(for example, whether compensation is based on
the fair value of the assets managed or on the
contractual cash flows collected).
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
RISK
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
RISK
Financial assets that are held for trading or are
managed and whose performance is evaluated on a
fair value basis are measured at FVTPL.
22.2.2.3. Financial assets – Assessment whether
contractual cash flows are solely payments of
principal and interest
For the purpose of this assessment, ‘principal’ is
defined as the fair value of the financial asset on
initial recognition. ‘Interest’ is defined as consideration
for the time value of money and for the credit risk
associated with the principal amount outstanding
during a particular period of time and for other
basic lending risks and costs (e.g. liquidity risk and
administrative costs), as well as a profit margin.
In assessing whether the contractual cash flows are
solely payments of principal and interest, the Group
considers the contractual terms of the instrument.
This includes assessing whether the financial asset
contains a contractual term that could change the
timing or amounts of contractual cash flows such
that it would not meet this condition. In making this
assessment, the Group considers:
• contingent events that would change the amount
or timing of cash flows;
• terms that may adjust the contractual coupon rate,
including variable-rate features;
• prepayment and extension features; and
• terms that limit the Group’s claim to cash flows
from specified assets (e.g. non-recourse features).
A prepayment feature is consistent with the solely
payments of principal and interest criterion if the
prepayment amount substantially represents unpaid
amounts of principal and interest on the principal
amount outstanding, which may include reasonable
additional compensation for early termination of the
contract. Additionally, for a financial asset acquired at
a discount or premium to its contractual par amount,
a feature that permits or requires prepayment at an
amount that substantially represents the contractual
par amount plus accrued (but unpaid) contractual
interest (which may also include reasonable additional
compensation for early termination) is treated as
consistent with this criterion if the fair value of
the prepayment feature is insignificant at initial
recognition.
22.2.2.4. Financial assets – Subsequent
measurement and gains and losses
Financial assets
at FVTPL
These assets are subsequently
measured at fair value. Net
gains and losses, including any
interest or dividend income, are
recognised in profit or loss.
Financial assets
at amortised
cost
These assets are subsequently
measured at amortised cost
using the effective interest
method. The amortised cost
is reduced by expected
impairment loss. Interest
income, foreign exchange gains
and losses and impairment are
recognised in profit or loss. Any
gain or loss on derecognition is
recognised in profit or loss.
Debt
investments at
FVOCI
These assets are subsequently
measured at fair value.
Interest income is calculated
using the effective interest
method. Other net gains and
losses are recognised in OCI.
On derecognition, gains and
losses accumulated in OCI are
reclassified to profit or loss.
Equity
investments at
FVOCI
These assets are subsequently
measured at fair value.
Dividends are recognised as
income in profit or loss unless
the dividend clearly represents
a recovery of part of the cost of
the investment. Other net gains
and losses are recognised in
OCI and are never reclassified
to profit or loss. In disposal or
derecognition of investment
the cumulative gain or loss
is not reclassified to profit or
loss, instead it is transferred to
retained earnings.
Derivatives at
FVCHR
See Note 23.3 for derivatives
designated as cash flow
hedges.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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22.2.2.5. Financial liabilities – Classification,
subsequent measurement and gains and losses
Financial liabilities are classified as either financial
liabilities at FVPTL or other financial liabilities.
Financial liabilities at FVTPL
Financial liabilities are classified as at FVTPL where
the liability is either held for trading or designated at
fair value through profit or loss.
A financial liability is held for trading if:
• it has been incurred principally for the purpose of
repurchasing it in the near term; or
• on initial recognition it is a part of a portfolio of
identified financial instruments that the Group
manages together and has a recent actual pattern
of short-term profit-taking; or
• it is a derivative that is not designated and
effective as a hedging instrument.
A financial liability other than a financial liability held
for trading may be designated as at FVTPL upon initial
recognition if:
• such designation eliminates or significantly
reduces a measurement or recognition
inconsistency that would otherwise arise; or
• the financial liability forms part of a group of
financial assets or financial liabilities or both,
which is managed and its performance evaluated
on a fair value basis, in accordance with the
Group’s documented risk management or
investment strategy, and information about the
grouping is provided internally on that basis; or
• it forms part of a contract containing one or more
embedded derivatives, and AASB 9 permits the
entire combined contract to be designated as at
FVTPL.
Financial liabilities at FVTPL are stated at fair value
with any gains or losses arising on remeasurement
recognised in profit or loss. The net gain or loss
recognised in profit or loss incorporates any interest
paid on the financial liability and is included in the
‘other gains and losses' line item.
Other financial liabilities
Other financial liabilities (including borrowings, trade
and other payables and trail commission liability) are
subsequently measured at amortised cost using the
effective interest rate method.
The effective interest rate method is a method of
calculating the amortised cost of a financial liability
and of allocating interest expense over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash payments
(including all fees and points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the financial liability, to
the net carrying amount on initial recognition.
22.2.3. Derecognition
22.2.3.1. Financial assets
The Group derecognises a financial asset when the
contractual rights to the cash flows from the financial
asset expire, or it transfers the rights to receive
the contractual cash flows in a transaction in which
substantively all of the risks and rewards of ownership
of the financial asset are transferred or in which the
Group neither transfers nor retains substantially all of
the risks and rewards of ownership and it does not
retain control of the financial asset.
The Group enters into transactions whereby it
transfers assets recognised in its statement of
financial position but retains either all or substantially
all of the risks and rewards of the transferred assets.
In these cases, the transferred assets are not
derecognised.
22.2.3.2. Financial liabilities
The Group derecognises a financial liability when its
contractual obligations are discharged or cancelled
or expire. The Group also derecognises a financial
liability when its terms are modified and the cash
flows of the modified liability are substantially
different, in which case a new financial liability based
on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference
between the carrying amount extinguished and the
consideration paid (including any non-cash assets
transferred or liabilities assumed) is recognised in
profit or loss.
22.2.4. Modification of financial instruments
A financial instrument is modified when its original
contractual cash flows are renegotiated or modified.
A financial asset that is renegotiated is derecognised
if the rights to receive cash flows from the existing
agreement have expired, either through replacement
by a new agreement or the existing terms are modified
to that effect. A financial liability that is renegotiated
is derecognised if the existing agreement is cancelled
and a new agreement is made on substantially
different terms or if that existing terms are modified
such that the renegotiated financial instrument is a
substantially different financial instrument.
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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Where the modification results in derecognition of
the original financial instrument, the new financial
instrument is recorded initially at its fair value and the
resulting difference is recognised in profit or loss in
accordance with the nature of the financial instrument
as described in the derecognition of financial assets
and liabilities policy.
For financial instruments measured at amortised cost,
and for debt financial assets measured at FVOCI,
when modification does not result in derecognition,
a gain or loss is recognised in profit or loss in
accordance with the nature of the financial instrument
as described in the derecognition of financial assets
and liabilities policy. The gain or loss is measured
as the adjustment of the gross carrying amount to
reflect the renegotiated or modified contractual cash
flows, discounted at the instrument’s original effective
interest rate.
22.2.5. Impairment of financial assets
The Group recognises loss allowances for expected
credit loss (ECL) on:
• Trade and other receivables
• Loans and advances measured at amortised cost
• Contract assets
• Lease receivables
The Group applies the following approach for
measuring credit provisions:
• Specific Provisions (Stage 3);
• ECL modelled Collective Provision in line with
AASB 9 requirements; and
• Post model overlays including macroeconomic,
model and management overlays.
ECL’s are monitored regularly in conjunction with
monthly hardship and arrears metrics provided to
the Group’s Asset and Liabilities Committee (ALCO).
The Group takes a tailored loan by loan approach to
managing credit risk.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit
losses. Credit losses are measured as the present
value of all cash shortfalls (i.e. the difference between
the cash flows due to the entity in accordance with
the contract and the cash flows that the Group
expects to receive). The Group’s ECL model is
segmented by portfolio and products as appropriate,
and all parameters are considered for each segment
of the book individually to ensure the credit risk is
accurately captured.
This has been a point of emphasis for the Group as
the portfolio mix shifts towards asset finance. The key
inputs used in measuring ECL include:
(a) probability of default: the PD is the likelihood
of default, applied to each individual underlying
exposure.
(b) loss given default: the LGD is an estimate of
the severity of loss following a default event,
taking into consideration the mitigating effect
of mortgage insurance if applicable, collateral
and time value of money. Mortgage insurance
is reflected indirectly in the LGD, as mortgage
insured loans are not expected to incur loss
following default.
The Group regularly reviews all model parameters
and the Group had historically utilised an external
LGD benchmark based on downturn conditions for
the home loans portfolio due to the small observed
loss sizes. Management has since undertaken an
analysis of actual loss history and benchmarked
the Group’s observed LGDs against both major
and non-bank peers for residential mortgages
and adjusted LGD assumptions accordingly.
This is supported by the Group’s observed LGD
values converging more closely towards industry
standards of larger data sets and exhibiting less
volatility. The reduction in the LGD resulted in a
decrease of 5bps to the overall coverage of the
home loans portfolio. Management feel the LGD
values and overall portfolio remains adequately
provisioned for any unexpected economic
downturn. It should be emphasised that modelled
LGD values have been held above Resimac’s
observed LGD.
(c) exposure at default: the EAD represents the
estimated exposure in the event of a default.
(d) Significant increase in credit risk: An asset moves
to stage 2 when its credit risk has increased
significantly since initial recognition. A significant
increase in credit risk is identified before the
exposure has defaulted and at the latest when
exposure becomes 31 days past due. When
determining whether the credit risk of a financial
asset has increased significantly since the initial
recognition and when estimating ECLs, the Group
considers reasonable and supportable information
that is relevant and readily available, including
both quantitative and qualitative information
and analysis, based on the Group’s historical
experience (e.g. a client experiencing hardship).
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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(e) Post model overlays: Management apply various
overlays to ensure the Group has sufficient
Balance Sheet coverage for known and potential
credit risk factors that are not modelled in the
above assumptions including:
Model risk overlay – applied by management to the
base ECL model for potential errors in development
and implementation of any of the quantitative
elements underpinning the model. Model risk
overlay is applied at 10% of modelled ECL (base ECL
and macroeconomic model overlay) for the home
loans portfolio (FY23: 20% of base). Management
have reduced the model risk overly in line with the
continued strong performance of the model and
underlying home loans portfolio. This had an impact
of $3.4 million on total ECL. For the asset finance
portfolio, model risk overlay is applied at 20% of the
modelled ECL, reflecting the infancy and relatively
smaller data set available for modelling compared to
the home loans.
Macroeconomic overlay – overlaid to the base
ECL model to provide for potential macroeconomic
factors not considered in the ECL model output (e.g.
rising unemployment, house price decline, low wage
growth). As part of the forward-looking assessment,
the Group has considered factors including macro-
economic forecast and outlook, housing price index,
GDP growth, unemployment rates and interest rates.
The asset finance portfolio is held at similar overlay
levels to the home loans portfolio at c30% base
modelled ECL.
Management overlay – applied by management where
higher Balance Sheet provision coverage is deemed
appropriate. For FY24, an additional management
overlay of $1.5m has been assigned for the asset
finance portfolio in excess of the modelled collective
provisions, reflecting the uncertainty that still exists
in the economy, particularly for small business clients
this portfolio serves, and the relatively immature
seasoning of majority of the portfolio.
The collective provision coverage of the Group has
been increased by modelling three hypothetical
macroeconomic scenarios. Credit risk factors of PD
and LGD used in the ECL calculation are point-in-time
estimates based on current conditions and adjusted
to include the impact of multiple probability-weighted
future forecast economic scenarios. Forward
looking PD and LGD factors are modelled based on
macroeconomic, in addition to the base ECL model
which uses the preceding 48 months of arrears and
loss history for home loans portfolio and 36 months
for asset finance portfolio. The macroeconomic
scenarios are based on the following key levers:
• Property prices – underlying securities are
stressed by percentages based on their ranking on
the Corelogic Hedonic Index property value bands.
These stress tests allow the Group to assess
underlying credit risk on a loan by loan basis in
each of the downside scenarios.
• Probability of default – stress each borrower with a
multiple of their actual PD. The PD stress multiple
increases as the underlying security stress
increases, factoring in the likely macroeconomic
impacts that would be experienced in a
declining property market scenario (e.g. higher
unemployment, lower GDP).
The table below summarises the macroeconomic
assumptions used for each of the scenarios. Each
scenario is applied a weighting to aggregate a
macroeconomic overlay for inclusion in the Group’s
total collective provision.
Scenario
Macroeconomic
data
Upside
Base
Downside
Growth
5.00%
2.30%
-1.50%
Unemployment
4.50%
5.40%
6.40%
Inflation
2.50%
3.50%
4.50%
Macro PD multiplier
Growth
0.25
0.33
2.00
Unemployment
0.25
0.33
2.00
Inflation
0.25
0.33
2.00
Macro Adj - PDs
0.75
1.00
6.00
Probability of default
Prime
1.04%
1.39%
8.34%
Near Prime
1.86%
2.48%
14.91%
Specialist
5.22%
6.95%
41.73%
Weighted avg
stressed PD
1.72%
2.29%
13.77%
House price impact
Lower
5.00%
2.50%
-15.00%
Mid
7.50%
5.00%
-20.00%
Upper
10.00%
7.50%
-25.00%
Scenario proba
bility weighting
25.00%
50.0%
-25.00%
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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The Group segments the base ECL model to ensure
reflecting the different risk profiles and experiences
of the various portfolios (i.e. home loans vs. asset
finance) and product lines within each portfolio as
appropriate (i.e. Prime vs. Specialist loans).
The Group aligns its approach to credit risk in line
with the segmentation of AASB 9. As such, the ECL
for financial assets measured at amortised cost is
determined with reference to the following stages:
Stage 1: 12 month ECL
At initial recognition, for financial assets without a
significant increase in credit risk (SICR), or for financial
assets where an increase in credit risk is considered to
be low, ECL is determined based on PD over the next
12 months and the LGD, adjusted for forward looking
estimates (FLE).
Stage 2: Lifetime ECL not credit impaired
Where there has been a SICR, the ECL is determined
with reference to the financial asset’s lifetime PD,
the lifetime losses associated with that PD and
LGD, adjusted for FLE. The Group assesses whether
there has been a SICR since initial recognition
based on qualitative, quantitative, and reasonable
and supportable FLE that includes management
judgement. Use of more alternative criteria could
result in significant changes to the timing and amount
of ECL to be recognised. Lifetime ECL is generally
determined based on the average maturity of the
financial asset. For the home loans portfolio the Group
also classifies certain loans that have a resolved
hardship status as stage 2 for an observation period
after the cessation of the hardship arrangement. For
the asset finance portfolio, any loans currently in
hardship have been captured and held at an elevated
credit risk while the hardship arrangement is ongoing.
Stage 3: Lifetime ECL credit impaired
Financial assets are classified as stage 3 where they
are determined to be credit impaired, which generally
matches the Group’s definition of default which
includes exposures that are at least 90 days past
due, and where the obligor is unlikely to pay without
recourse against available collateral.
The ECL for credit impaired financial assets is
generally measured as the difference between the
discounted contractual and discounted expected cash
flows from the individual exposure. For credit impaired
exposure that are modelled collectively, ECL is
measured as the product of the lifetime PD, LGD, and
EAD, adjusted for FLE. Interest income is determined
with reference to the financial asset’s amortised cost
carrying value, being the financial asset’s net carrying
value after the ECL provision.
Stage 3: Impaired assets (specific)
Outside of the ECL, where assets are more than
90 days past due and a shortfall between the loan
balance and the underlying security has been
identified, a specific provision is raised for the
shortfall.
The Group measures loss allowances at an amount
equal to the lifetime ECL for stage 2 or stage 3
assets if the credit risk on that financial instrument
has increased significantly since recognition (stage
2), or are credit impaired (stage 3), or if the financial
instrument is a purchased or originated credit-
impaired financial asset (stage 3). If the credit risk on
a financial instrument has not increased significantly
since initial recognition (except for a purchased
or originated credit-impaired financial asset), the
Group measures the loss allowance for that financial
instrument at an amount equal to a 12 month ECL for
stage 1 assets.
Credit-impaired financial assets
The movement between stage 2 and 3 will be based
on whether financial assets are credit-impaired at the
reporting date. A financial asset is credit-impaired
when one or more events that have a detrimental
impact on the estimated future cash flows of the
financial assets have occurred. Evidence that a
financial asset is credit-impaired includes observable
data about the following events:
• significant financial difficulty of the borrower; or
• breach of contract, such as a default or
delinquency in interest or principal payments; or
• becoming apparent that the borrower will enter
bankruptcy or financial re-organisation; or
• past experience of collecting payments; or
• an increase in the number of delayed payments in
the portfolio past the average credit period; or
• observable changes in national or local economic
conditions that correlate with default on
receivables.
See Note 23.6 for further details on credit-impaired
financial assets.
Definition of default
The Group considers that default has occurred at 90
days past due. Loans also specially provisioned for
any other material information that come to light (e.g.
bankruptcy).
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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23. Financial risk management
23.1. Financial risk management objectives
The Group's Corporate Treasury function:
• implements and executes the treasury and funding strategy;
• co-ordinates access to domestic and international financial markets; and
• monitors and manages the financial risks relating to the operations of the Group through internal monitoring
tools which analyse exposures by degree and magnitude of risks.
These risks include:
• market risk (including currency risk and interest rate risk);
• economic risk;
• interest rate risk;
• credit risk; and
• liquidity risk.
23.2. Derivative financial instruments
The Group seeks to minimise the effects of currency risks on bonds issued in foreign currencies and interest rate
risks on floating rate borrowings by using derivative financial instruments to hedge risk exposures.
The use of financial derivatives is governed by the Group's Interest Rate Risk Management Policy approved by the
Board of Directors, which provide written principles on:
• foreign exchange risk;
• interest rate risk;
• credit risk;
• the use of financial derivatives and non-derivative financial instruments; and
• the investment of excess liquidity.
Compliance with policies and exposure limits is reviewed by the Board on a continuous basis. The Group does not
enter into or trade financial instruments, including derivative financial instruments, for speculative or proprietary
purposes.
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
RISK
Risk
Exposure arising from
Measurement
Management
Market risk -
currency
Recognised financial assets and
liabilities not denominated in Australian
dollars.
Foreign currency denominated profit or
losses.
Cash flow
forecasting
Sensitivity
analysis
Cross currency interest rate
swaps.
Cash flow management and
matching.
Market risk -
interest rate
Mismatch in interest rates between
assets and liabilities.
Sensitivity
analysis
Interest rate swaps and
overnight index swaps.
Market risk -
equity
investment
valuation
Investments in equity securities.
Sensitivity
analysis
Equity investments not held for
trading.
Credit risk
Loan portfolio and bond exposures,
counterparty risk.
Credit risk
analysis
Rating agency
criteria and
analyses
Diversification, adaptive capital
structures, strong collections/
portfolio management, quality
of collateral, rating agency
provisions in transactions
documents.
Liquidity risk
Borrowings, derivative financial
liabilities.
Rolling cash flow
forecasts
Availability of committed credit
lines and borrowing facilities,
securitisation, capital relief
transactions, structuring terms
of obligations, diversification of
funders.
RECOGNITION & MEASUREMENT
Derivatives are initially recognised at fair value at the
date the derivative contracts are entered into and are
subsequently remeasured to their fair value at each
reporting period.
The resulting gain or loss is recognised in profit or loss
immediately unless the derivative is designated and
effective as a hedging instrument, in which event the
timing of the recognition in profit or loss depends on
the nature of the hedge relationship.
23.3. Hedge accounting
The Group designates certain hedging instruments,
which includes derivatives in respect of foreign
currency and interest rate risks, as cash flow hedges.
At the inception of the hedge relationship the
Group documents the relationship between the
hedging instrument and hedged item, along with
its risk management objectives and its strategy for
undertaking various hedge transactions.
Furthermore, at the inception of the hedge and on
an ongoing basis, the Group documents whether
the hedging instrument that is used in a hedging
relationship is effective in offsetting changes
in fair values or cash flows of the hedged item
attributable to the hedged risk, which is when the
hedging relationships meet all of the following hedge
effectiveness requirements:
• there is an economic relationship between the
hedged item and the hedging instrument;
• the effect of credit risk does not dominate the
value changes that result from that economic
relationship; and
• the hedge value is largely reflective of the hedged
item.
The table below summarises the Group’s exposure to financial risks and how these risks are managed.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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23.3.1. Cash flow hedges
The effective portion of changes in the fair value of
derivatives that are designated and qualify as cash
flow hedges is recognised in other comprehensive
income and accumulated under the heading of cash
flow hedging reserve. The gain or loss relating to the
ineffective portion is recognised immediately in profit
or loss.
Amounts previously recognised in other
comprehensive income and accumulated in equity are
reclassified to profit or loss, in the same line as the
recognised hedged item.
The majority of the Group’s interest rate swaps are
not designated as hedging instruments for accounting
purposes, the changes in the fair value are recognised
immediately in profit or loss for these interest rate
swaps.
Hedge accounting is discontinued when:
• the Group revokes the hedging relationship;
• the hedging instrument expires or is sold,
terminated, or exercised; or
• the Group no longer qualifies for hedge
accounting.
Any cumulative gain or loss recognised in other
comprehensive income and accumulated in equity at
that time remains in equity and is recognised when
the forecast transaction is ultimately recognised in
profit or loss. When a forecast transaction is no longer
expected to occur, the gain or loss accumulated in
equity is recognised immediately in profit or loss.
The following table details the amounts relating to
items designated as cash flow hedges:
23.3.2. Derivative financial assets and liabilities
The carrying values are as follows:
FY24
FY23
Derivative financial assets
$'000
$'000
Cross currency swaps
41,545
4,474
Interest rate swaps
6,052
20,722
47,597
25,196
Derivative financial liabilities
Cross currency swaps
135,029
Interest rate swaps
610
Overnight index swaps
-
426
135,639
426
USD CCS
JPY CCS
GBP CCS
IRS
30 June 2024 (Disclosed in AUD)
$'000
$'000
$'000
$'000
Notional amount
365,632
533,998
245,805
899,732
Average fixed contract rate (FX rate per AUD)
0.74
82.21
0.51
-
Average fixed interest rate
-
-
-
4.19%
Carrying amount of the hedging instrument
• Assets
41,545
-
-
2,153
• Liabilities
-
(127,839)
(7,190)
(610)
Total carrying amount of the hedging instrument
41,545
(127,839)
(7,190)
1,543
Change in value of hedging instrument
(61,224)
(29,544)
(7,190)
(3,216)
Change in value of hedged item
60,882
34,499
5,065
3,216
Change in value of hedging instrument
recognised in cash flow hedge reserve
(342)
4,955
(2,125)
(3,216)
Hedge ineffectiveness recognised in profit or loss
-
-
-
-
Amount reclassified from hedge reserve to profit or loss due to:
• FX spot movement
42,383
(122,218)
(5,065)
-
• Hedging gain/loss recognised on settlement
(38,130)
(29,592)
(12,474)
(4,238)
USD CCS
JPY CCS
IRS
30 June 2023 (Disclosed in AUD)
$'000
$'000
$'000
Notional amount
1,052,035
450,000
536,432
Average fixed contract rate (FX rate per AUD)
0.72
77.22
-
Average fixed interest rate
-
-
3.95%
Carrying amount of the hedging instrument
• Assets
102,769
-
4,760
• Liabilities
-
(98,295)
-
Total carrying amount of the hedging instrument
102,769
(98,295)
4,760
Change in value of hedging instrument
3,400
(10,326)
4,760
Change in value of hedged item
6,187
7,596
(4,760)
Change in value of hedging instrument recognised in cash flow hedge reserve
9,587
(2,730)
4,760
Hedge ineffectiveness recognised in profit or loss
-
-
-
Amount reclassified from hedge reserve to profit or loss due to:
• FX spot movement
103,264
(87,719)
-
• Hedging gain/loss recognised on settlement
(55,688)
(17,362)
(299)
2024 ANNUAL REPORT
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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The Group seeks to minimise the effects of foreign
currency and some interest rate exposures by using
derivative instruments to hedge these positions.
Derivatives are initially recognised at fair value at
the date derivative contracts are entered into, and
subsequently measured at their fair value at each
reporting period.
During the period, currency movements drove
changes in valuation of the Groups’ cross currency
swaps hedged to the Group’s US RMBS bonds.
These movements in the derivative balances are
matched with the USD, GBP and JPY bond liabilities,
with the profit/(loss) on swaps recognised in Other
Comprehensive Income.
23.4. Market risk
Market risk is the risk of an adverse impact on the
Group’s earnings resulting from changes in market
factors, such as interest rates, equity prices and
foreign exchange rates.
23.4.1. Interest rate risk
Interest rate risk is the risk that the Group will
experience deterioration in its financial position as
interest rates change over time.
Interest rate exposure is driven by interest rate
mismatches between assets and liabilities (i.e.
borrowing at floating interest rates and lending with
fixed interest rates). Interest rate risk is managed
by entering into interest rate and overnight index
swaps subject to the Group’s hedging and derivatives
policies.
23.4.2. Interest rate risk – Sensitivity analysis
The majority of the Group’s liabilities are issued
through warehouse facilities and securitisation trusts.
Under such arrangements, the repayment profile of
the bonds is matched to the repayments collected
from the loan assets.
The Group has calculated the impact of a potential
increase or decrease in borrowing costs in limited
recourse entities for the year in the event of a +/-
10bps change in interest rates as shown in the table
below:
FY24
FY23
10bps +/-
$'000
$'000
Loans and advances
14,015
13,737
Debt securities on issue and issuance facilities
14,322
14,375
In relation to the Group’s interest rate swaps, if interest rates had been 10bps higher/lower and all other variables
were held constant, the Groups:
• profit for the year ended 30 June 2024 would decrease/increase by $0.2 million (FY23: $0.4 million)
• cash flow hedge reserves would decrease/increase by $1.8 million (FY23: $1.0 million).
The following table details the notional principal amounts outstanding at the end of the reporting period:
FY24
FY23
Notional principal value
$'000
$'000
Less than 1 year
105,815
113,962
1 to 2 years
98,199
229,379
2 to 5 years
1,013,435
813,565
1,217,449
1,156,906
The interest rate swaps settle and reset on a monthly
basis. The floating rate on the interest rate swaps is
the Bank Bill Swap Rate (BBSW) local interbank rate.
The Group will settle the difference between the fixed
and floating interest rate on a net basis.
23.4.4. Overnight index swap contracts
Under overnight index swap contracts, the Group
agrees to exchange the difference between the
overnight cash rate plus a margin and 1 month BBSW
on agreed notional principal amounts. Such contracts
enable the Group to mitigate the exposure of basis
differentials in an increasing rates environment, of
its loan and funding book. The fair value of overnight
index swaps at the end of the reporting period is
determined by discounting the future cash flows using
the overnight index curves at the end of the reporting
period and the credit risk inherent in the contract and
is disclosed below.
FY24
FY23
Fair value
$'000
$'000
Derivative financial liabilities
-
426
23.4.3. Interest rate swap contracts
Under interest rate swap contracts, the Group agrees
to exchange the difference between fixed and floating
rate interest amounts calculated on agreed notional
principal amounts. Such contracts enable the Group
to mitigate the risk of changing interest rates on the
cash flow exposures on the issued variable rate debt.
The fair value of interest rate swaps at the end of the
reporting period is determined by discounting the
future cash flows using the interest rate curves at the
end of the reporting period and the credit risk inherent
in the contract and is disclosed below.
FY24
FY23
Fair value
$'000
$'000
Derivative financial assets
6,052
20,722
Derivative financial liabilities
(610)
-
2024 ANNUAL REPORT
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RISK
23.4.5. Corporate interest – Sensitivity analysis
The remainder of the Group’s loan portfolio and liabilities are held in corporate entities. The impact of a potential +/-
10bps change in interest rates on interest revenue and borrowing costs on balances held by the Group for the year
is set out in the table below:
FY24
FY23
10bps +/-
$'000
$'000
Impact on corporate interest revenue
Interest rate + 10bps
871
1,085
Interest rate - 10bps
(871)
(1,085)
Impact on corporate funding costs
Interest rate + 10bps
(39)
(50)
Interest rate - 10bps
39
50
The carrying amounts of the Group’s foreign currency denominated assets and liabilities outstanding at the end of
the reporting period are set out in Note 23.3.1. The following table details the notional principal amounts outstanding
at the end of the reporting period:
The following table details the notional principal amounts outstanding at the end of the reporting period:
FY24
FY23
Notional principal value
$'000
$'000
Less than 1 year
-
4,000,000
-
4,000,000
23.4.6. Equity price risk
Equity investments in listed and unlisted shares are
held for strategic rather than trading purposes. The
Group does not actively trade these investments.
23.4.7. Equity investment valuation risk - sensitivity
analysis
If equity prices on listed shares had been 10% higher
/ lower:
• Other comprehensive income would increase/
decrease by $1,515,000 as a result of the changes
in fair value of investments in listed shares (FY23:
$1,708,000).
If fair value assessments on unlisted shares had been
10% higher / lower:
• Net profit for the year ended 30 June 2024 would
increase/decrease by $351,000 as a result of the
changes in fair value of the investments in unlisted
shares (FY23: $351,000);
23.5. Foreign currency risk
23.5.1. Accounting translation
As at reporting date the Group held cash assets and
loans denominated in New Zealand dollars (NZD).
Fluctuations in the NZD are not expected to have
a material impact on the consolidated statement
of profit or loss or the consolidated statement of
comprehensive income and equity of the Group.
23.5.2. Market risk - foreign exchange on monetary
items
The Group obtains funding denominated in foreign
currencies, consequently, exposure to exchange rate
fluctuations arise. These currencies include USD, GBP
and JPY. The Group manages foreign currency risk
through the use of currency derivatives.
FY24
FY23
Notional principal value
$'000
$'000
2 to 5 years
1,145,435
1,502,035
1,145,435
1,502,035
23.5.3. Foreign currency risk - sensitivity analysis
In relation to the Group’s foreign currency swaps, if
foreign exchange rates had been 10bps higher/lower
and all other variables were held constant the Groups
cash flow hedge reserves would decrease/increase by
$0.7 million.
23.6. Credit risk management
Credit risk is the risk that a counterparty will fail
to complete its contractual obligations when they
fall due. The consequential loss is the amount of
the financial obligation not paid back, or the loss
incurred in replicating a trading contract with a new
counterparty.
The Group’s primary credit risk exposures relate
to its lending activities in its principally funded
mortgage portfolio and asset finance portfolio. The
Group’s primary lending activities are concentrated
in the Australian and New Zealand market. The
underlying credit risk in the Group’s lending activities
is commensurate with a geographically-diverse
residential mortgage portfolio and asset finance
portfolio.
The Board of Directors is responsible for determining
the Group’s overall appetite for credit risk and
monitoring the quality and performance of the
mortgage portfolio. The credit risk management
operational framework and policy is governed and
managed by the Credit Committee.
The Group does not have any direct counterparty
credit exposure arising from its financing and
securitisation activities. Counterparty risk is governed,
and mitigated where required, by ratings agency
criteria within the securitisation trusts including
exposures to banks, lender’s mortgage insurance
providers and derivative counterparties.
23.6.1. Credit risk in lending
The Group has established lending policies and
procedures to manage the credit risk inherent in
lending. The extent of credit risk in the Group’s lending
activities is managed within its origination and funding
programmes. The Group maintains separate credit
policies for each programme and regularly reviews
and amends policies in line with economic, operating
and funding conditions.
The Group’s approach to credit management utilises
a credit risk framework to ensure that the following
principles are adhered to:
• independence from brokers;
• recognition of the different risks in the various
Group businesses;
• credit exposures are systematically controlled and
monitored;
• credit exposures are regularly reviewed in
accordance with up-to-date credit procedures;
and
• credit exposures include such exposures arising
from derivative transactions.
The asset finance portfolio has seen considerable
growth in FY24. The credit risk profile of the asset
finance portfolio diverges noticeably from the home
loans segment. The underlying collateral for asset
finance depreciates over time and, unlike real estate,
is relocatable which raises risks of loss or theft.
During FY24, the following additional risk management
activities were introduced by the Group to address the
increased risk:
• set up of a dedicated collection and recoveries
function for each product line; and
• introduction of an enhanced hardship program.
Each of the Group’s business units are responsible for
managing credit risks that arise in their own areas with
oversight from a Group Credit Committee. The Group
Credit Committee monitors the policies of all divisions
to ensure that the risk of the Group is monitored
appropriately and within risk appetite.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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NOTE
FY24
FY23
$'000
$'000
Cash and cash equivalents
4
870,999
1,085,417
Trade and other receivables (excluding prepayments)
5
1,775
1,095
Contract assets
1
9,569
13,877
Other financial assets
7
18,655
28,587
Derivative financial assets
23
47,597
25,196
948,595
1,154,172
Loans and advances at amortised cost (subject to credit risk)
6
14,015,052
13,736,981
14,963,647
14,891,153
As at 30 June 2024, 100% of the Group’s cash and cash equivalents are held with banks or financial institutions with
a credit rating of AA- or better (FY23: 100%).
23.6.3.1. Loan borrowers
The Group manages credit risk by obtaining security over the loan asset and mortgage insurance for loans, where
required.
In monitoring the credit risk, loans are segregated according to their credit characteristics using credit risk
classification systems. This includes the use of the Loan to Value Ratio (LVR) to assess its exposure to credit risk
from loans originated through the securitisation programme.
23.6.4. Financial guarantees
The Group is exposed to credit risk in relation to financial guarantees given to banks. The Group's maximum
exposure in this respect is the maximum amount the Group could have to pay if the guarantees are called on. Refer
to Note 26.2 for the guarantees in respect of the leases.
23.6.5. Credit risk management
The following table summarises the loans and advances and the expected credit loss by stage and risk category:
Stage 1
Collective
Stage 2
Collective
Stage 3
Collective
Stage 3
Specific
Total
Maximum exposure to credit risk
$'000
$'000
$'000
$'000
$'000
Balance as at 30 June 2024
Loans and advances
• Mortgage lending
12,167,811
633,662
106,590
5,049
12,913,112
• Asset finance lending
1,091,178
11,032
1,111
5,559
1,108,880
• Commercial lending
245
-
-
-
245
Total
13,259,234
644,694
107,701
10,608
14,022,237
Balance as at 30 June 2023
Loans and advances
• Mortgage lending
12,614,816
365,141
126,574
6,084
13,112,615
• Asset finance lending
629,738
6,106
99
1,228
637,171
• Commercial lending
265
-
-
-
265
Total
13,244,819
371,247
126,673
7,312
13,750,051
Expected credit loss
Balance as at 30 June 2024
Loans and advances
• Mortgage lending
9,269
20,264
7,143
1,688
38,364
• Asset finance lending
5,499
3,263
672
2,211
11,645
• Commercial lending
-
-
-
-
-
Total
14,768
23,527
7,815
3,899
50,009
Balance as at 30 June 2023
Loans and advances
• Mortgage lending
15,448
13,244
11,937
1,837
42,466
• Asset finance lending
1,846
763
57
712
3,378
• Commercial lending
-
-
-
-
-
Total
17,294
14,007
11,994
2,549
45,844
The Group Credit Committee will continually monitor the credit policy taking into account internal and external
factors, to ensure credit policy aligns with the risk appetite of the Group.
23.6.2. Exposure to credit risk
Loans and advances consist of a large number of customers, spread across diverse demographic and geographical
areas. Ongoing credit evaluation is performed on the financial condition of loans and advances, accounts receivable
and other financial assets.
There is no significant concentration of risk to any single counterparty.
The credit risk on derivative financial instruments is limited because the counterparties are banks with high credit-
ratings assigned by international credit-rating agencies.
23.6.3. Maximum exposure to credit risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s exposure
to credit risk at the reporting date was:
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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The majority of the Group’s exposure to loans and
advances is limited, as they are legally owned by
securitisation trusts with limited recourse to the
Group. Losses on mortgage loans in these entities are
therefore limited to the Group’s investment in notes in
these trusts and the residual income rights of trusts.
The trust structures are designed such that losses
are covered by the income generated from the assets
within the trust before the investment notes are
impaired.
Collateral held
The value of the collateral held as security for loans
in stage 2 and stage 3 collective at 30 June 2024 is
$1,374.5 million (30 June 2023: $726.4 million).
The value of the collateral held as security for loans in
stage 3 specific loans at 30 June 2024 is $4.9 million
(30 June 2023: $5.1 million).
Loans are secured by the Group by having the
property titles registered as a financial interest that
provide the Group first priority over any proceeds
becoming available from the sale of the property.
For Prime insured loans, LMI policies exist to cover
100% of the principal amount at default plus interest.
At 30 June 2024, 98% (FY23: 97%) of the Australian
mortgage lending portfolio is either mortgage insured
or originated at an LVR of below 80%.
23.6.6. Credit risk concentrations
An analysis of the Group’s credit risk concentrations
on loans and advances is provided in the following
table. The amounts in the table represent gross
carrying amounts:
Loans and advances at amortised cost
FY24
FY23
Concentration by region
$'000
%1
$'000
%1
New South Wales
5,155,638
37%
4,985,022
36%
Victoria
3,626,654
25%
3,567,529
26%
Queensland
2,629,575
19%
2,470,642
18%
Western Australia
953,890
7%
922,251
7%
South Australia
980,239
7%
894,862
7%
Tasmania
101,786
1%
92,180
1%
Northern Territory
58,574
0%
59,912
0%
New Zealand
515,881
4%
757,653
5%
Total
14,022,237
100%
13,750,051
100%
Expected credit loss
FY24
FY23
Concentration by region
$'000
%1
$'000
%1
New South Wales
19,817
40%
16,374
36%
Victoria
14,294
28%
13,141
29%
Queensland
7,643
15%
7,797
17%
Western Australia
3,165
6%
4,059
9%
South Australia
2,697
5%
2,085
5%
Tasmania
292
1%
232
0%
Northern Territory
336
1%
827
1%
New Zealand
1,765
4%
1,329
3%
Total
50,009
100%
45,844
100%
1 Rounded to nearest 100bps.
23.6.7. Analysis of loans and advances by past due status
Under the Group’s monitoring procedures, a significant increase in credit risk is identified at the latest when
exposure becomes 30 days past due. The table below provides an analysis of the gross carrying amount of loans
and advances by past due status that are over 30 days past due.
FY24
FY23
Loans and advances at amortised cost1
$'000
$'000
0 days and less than 30 days
13,506,625
13,428,879
30 days and less than 60 days
123,010
125,826
60 days and less than 90 days
277,242
63,915
90 days and less than 180 days
58,220
77,987
180 days and less than 270 days
26,407
35,959
270 days and less than 365 days
13,587
9,873
365 days and over
17,146
7,612
Total
14,022,237
13,750,051
1 Includes loans that are collectively and specifically provided for.
FY24
FY23
Expected credit loss
$'000
$'000
0 days and less than 30 days
24,293
25,896
30 days and less than 60 days
4,148
3,526
60 days and less than 90 days
10,813
3,046
90 days and less than 180 days
6,975
7,742
180 days and less than 270 days
1,867
3,237
270 days and less than 365 days
878
1,148
365 days and over
1,035
1,249
Total
50,009
45,844
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
RISK
23.6.8. Movement in credit exposures
Stage 1
Collective
Stage 2
Collective
Stage 3
Collective
Stage 3
Specific
Total
Provision for impairment losses
$'000
$'000
$'000
$'000
$'000
Balance as at 30 June 2023
17,294
14,007
11,993
2,550
45,844
Net transfer between stages
(7,563)
(905)
8,554
(86)
-
Stage 1 - Collective
-
2,587
5,016
(2)
7,601
Stage 2 - Collective
(2,204)
-
3,537
6
1,339
Stage 3 - Collective
(4,946)
(3,531)
-
(90)
(8,567)
Stage 3 - Impaired
(413)
39
1
-
(373)
Net re-measurement on transfers
between stages
(5,348)
7,019
(13,742)
360
(11,711)
Impact of transfers between stages
and re-measurement
4,383
20,121
6,805
2,824
34,133
Net financial assets originated
6,511
3,853
856
2,552
13,772
Write-offs
(2,469)
(1,092)
(99)
(3,777)
(7,437)
Discharges/Other
6,343
645
253
2,300
9,541
Balance as at 30 June 2024
14,768
23,527
7,815
3,899
50,009
Credit exposure
Balance as at 1 July 2023
13,244,819
371,247
126,673
7,312
13,750,051
Net transfers between stages and
financial assets originated
16,884
274,539
(18,873)
7,073
279,623
Write-offs
(2,469)
(1,092)
(99)
(3,777)
(7,437)
Balance as at 30 June 2024
13,259,234
644,694
107,701
10,608
14,022,237
Stage 1
Collective
Stage 2
Collective
Stage 3
Collective
Stage 3
Specific
Total
Provision for impairment losses
$'000
$'000
$'000
$'000
$'000
Balance as at 30 June 2022
24,992
12,801
4,899
4,349
47,041
Net transfer between stages
7,252
(5,137)
(978)
(1,137)
-
Stage 1 - Collective
-
(5,125)
(717)
(1,410)
(7,252)
Stage 2 - Collective
5,125
-
(116)
128
5,137
Stage 3 - Collective
717
116
-
145
978
Stage 3 - Impaired
1,410
(128)
(145)
-
1,137
Net re-measurement on transfers
between stages
(20,204)
6,800
7,745
1,949
(3,710)
Impact of transfers between stages
and re-measurement
12,040
14,464
11,666
5,161
43,331
Net financial assets originated
8,061
1,362
1,418
203
11,044
Write-offs
-
-
-
(3,437)
(3,437)
Discharges/Other
(2,807)
(1,819)
(1,091)
623
(5,094)
Balance as at 30 June 2023
17,294
14,007
11,993
2,550
45,844
Credit exposure
Balance as at 1 July 2022
15,319,015
319,505
39,676
6,304
15,684,500
Net transfers between stages and
financial assets originated
(2,074,196)
51,742
86,997
4,445
(1,931,012)
Write-offs
-
-
-
(3,437)
(3,437)
Balance as at 30 June 2023
13,244,819
371,247
126,673
7,312
13,750,051
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
RISK
23.7. Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an
appropriate liquidity risk management framework for the management of the Group's short, medium and long-term
funding and liquidity management requirements.
The Group’s funding platform currently comprises a mix of:
• warehouse facilities;
• securitisation trusts;
• secured corporate debt facilities; and
• cash.
The majority of the Group’s liabilities represent bonds issued by SPVs through warehouse facilities and
securitisation trusts. Under such arrangements, bondholder recourse is limited to the assets of the relevant SPVs
to which the liability relates and the repayment profile of the bonds is matched to the repayments collected from
the loan assets. Given the limited recourse nature of these borrowings, $14.1 billion at 30 June 2024 (FY23: $14.1
billion), they have not all been included in the table below.
The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing
facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of
financial assets and liabilities.
Note 23.7.2 below sets out details of additional undrawn facilities that the Group has at its disposal to further
reduce liquidity risk.
23.7.1. Liquidity risk tables
The following table shows the Group's remaining expected maturity for its non-derivative financial liabilities with
agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial
liabilities based on the expected cashflows from underlying assets and hence will not necessarily reconcile with the
amounts disclosed in the statement of financial position.
The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the
undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual
maturity is based on the earliest date on which the Group may be required to pay.
<6 months or
on demand
6-12
months
1-3
years
3-5
years
>5
years
Total
cash flows
Carrying
amount
Financial liabilities
$'000
$'000
$'000
$'000
$'000
$'000
$'000
FY24
Trade and other payables
27,192
-
-
-
-
27,192
27,192
Interest-bearing liabilities
• Issuance facilities
2,899
25,000
159,534
106,454
-
293,887
293,887
• Corporate debt
39,000
-
-
-
-
39,000
39,000
Derivatives
135,639
-
-
-
-
135,639
135,639
218,971
36,089
194,478
128,225
43,707
621,470
588,950
23.7.2. Financing facilities
FY24
FY23
Secured corporate debt facility which may be extended by mutual agreement
$'000
$'000
Amount used
-
-
Amount unused
30,000
30,000
30,000
30,000
Present value of future trail
commissions payable
13,193
9,977
30,446
20,245
43,707
117,568
85,864
Lease liabilities
1,048
1,112
4,498
1,526
-
8,184
7,368
83,332
36,089
194,478
128,225
43,707
485,831
453,311
FY23
Trade and other payables
27,146
-
-
-
-
27,146
27,146
Interest-bearing liabilities
• Issuance facilities
21,110
-
143,289
131,517
-
295,916
295,916
• Corporate debt
50,000
-
-
-
-
50,000
50,000
Derivatives
426
-
-
-
-
426
426
100,996
2,121
150,448
136,776
1,377
391,718
389,707
Present value of future trail
commissions payable
1,227
1,032
2,677
1,373
1,377
7,686
6,850
Lease liabilities
1,087
1,089
4,482
3,886
-
10,544
9,369
100,570
2,121
150,448
136,776
1,377
391,292
389,281
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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GROUP STRUCTURE
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
GROUP STRUCTURE
Group
structure.
For the year ended
30 June 2024
24. Subsidiaries
Details of the Group’s subsidiaries at the end of the reporting period are as follows:
Name of subsidiary
Principal activity
Place of
incorporation
and operation
FY24
FY23
Controlled companies
%
%
Access Network Management Pty Ltd
Mortgage manager
Australia
100
100
Auspak Financial Services Pty Ltd
Mortgage broker
Australia
100
100
Clarence Street Finance Pty Ltd
Holder of commission agreements
Australia
100
100
Clarence Street Funding No.1 Pty Ltd
Special purpose vehicle
Australia
99.9
99.9
Clarence Street Funding No.2 Pty Ltd
Participation unit holder
Australia
100
100
Clarence Street Funding No.3 Pty Ltd
Special purpose vehicle
Australia
100
100
Clarence Street Funding No.4 Pty Ltd
Special purpose vehicle
Australia
100
100
Clarence Street Funding No.6 Pty Ltd
Special purpose vehicle
Australia
100
100
Clarence Street Funding No.7 Pty Ltd
Special purpose vehicle
Australia
100
100
Clarence Street Funding No.8 Pty Ltd
Special purpose vehicle
Australia
100
100
Clarence Street Funding No.9 Pty Ltd
Special purpose vehicle
Australia
100
100
Clarence Street Funding No.10 Pty Ltd
Special purpose vehicle
Australia
100
100
Clarence Street Funding No.11 Pty Ltd
Special purpose vehicle
Australia
100
100
Clarence Street Funding No.12 Pty Ltd1
Special purpose vehicle
Australia
100
-
Clarence Street Funding No.13 Pty Ltd2
Special purpose vehicle
Australia
100
-
FAI First Mortgage Pty Ltd
Trust manager and servicer
Australia
100
100
Homeloans.com.au Pty Ltd
Mortgage lender
Australia
100
100
Proportion of
ownership interest
held & voting power
held by the Group
Name of subsidiary
Principal activity
Place of
incorporation
and operation
FY24
FY23
Controlled companies
%
%
Housing Financial Services Pty Ltd
Mortgage originator
Australia
100
100
Independent Mortgage Corporation Pty Ltd
Mortgage broker
Australia
100
100
Resimac Asset Finance Pty Ltd
Asset finance originator and manager
Australia
100
100
RAF Structured Finance Pty Ltd
Consumer and commercial lending
Australia
100
100
SF Mortgage Pty Ltd
Lender of record
Australia
100
100
Parnell Road Funding No.1 Limited
Special purpose vehicle
New Zealand
100
100
Parnell Road Funding No.2 Limited
Special purpose vehicle
New Zealand
100
100
Prime Insurance Group Limited
LMI captive insurer
Bermuda
100
100
RESIMAC Capital Markets Pty Ltd
Trust manager
Australia
100
100
RESIMAC Financial Services Limited
NZ Holding company
New Zealand
100
100
RESIMAC Financial Securities Limited
NZ Trust manager and servicer
New Zealand
100
100
RESIMAC Home Loans Limited
NZ Lender of record and trustee
New Zealand
100
100
RESIMAC Limited
Non-bank lender
Australia
100
100
RESIMAC NZ Home Loans Limited
NZ Holding company
New Zealand
100
100
RESIMAC Premier Warehouse No.1 Pty Ltd3
Unit Holder
Australia
-
-
RMC Fiduciary Services Pty Ltd3
Mortgage trustee
Australia
-
-
RHG Mortgage Corporation Pty Ltd3
Lender of record
Australia
-
-
RHG Mortgage Securities Pty Ltd3
Mortgage trustee
Australia
-
-
RHG Home Loan Pty Ltd
Mortgage Originator
Australia
100
100
The Servicing Company Pty Ltd
Trust servicer
Australia
100
100
RESIMAC EST PTY LTD
Initial Trustee
Australia
100
100
23 Degrees Capital Partners Pty Ltd
Asset finance wholesaler
Australia
51
51
0508 Home Loans Limited
Dormant
New Zealand
100
100
0800 Home Loans Limited
Dormant
New Zealand
100
100
Clarence Street Funding No.5 Pty Ltd
Dormant
Australia
99.9
99.9
Fiduciary Services Pty Ltd
Dormant
Australia
100
100
National Mutual Pty Ltd
Dormant
Australia
100
100
RESIMAC Financial Securitisation Limited
Dormant
New Zealand
100
100
RESIMAC Financial Services Pty Ltd
Dormant
Australia
100
100
Proportion of
ownership interest
held & voting power
held by the Group
1 Incorporated on 18 March 2024.
2 Incorporated on 28 March 2024.
3 Ownership interest is 0% however the Group have Board control.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 115
114 |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
GROUP STRUCTURE
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
GROUP STRUCTURE
Name of subsidiary
Principal activity
Place of
incorporation
and operation
FY24
FY23
Controlled companies
%
%
RESIMAC Leasing Pty Ltd
Dormant
Australia
100
100
Homeloans Pty Ltd
Dormant
Australia
100
100
Proportion of
ownership interest
held & voting power
held by the Group
Controlled trusts
Avoca Master Trust
Issuer of RMBS
Australia
100
100
NZF Mortgages Warehouse A Trust
Warehouse mortgages
New Zealand
100
100
RESIMAC Bastille Master Trust5
Issuer of RMBS
Australia
100
100
RESIMAC Triomphe Master Trust5
Issuer of RMBS
Australia
100
100
RESIMAC Versailles Master Trust
Issuer of RMBS
New Zealand
100
100
RESIMAC Victoire Trust
Warehouse mortgages
New Zealand
100
100
RESIMAC Premier Series 2021-2
Issuer of RMBS
New Zealand
100
100
RMT Warehouse Trust No.25,6
Warehouse mortgages
Australia
-
100
RMT Securitisation Trust No.75,7
Issuer of RMBS
Australia
-
100
RMC Enhanced Income Fund
Managed Investment Trust
Australia
100
100
RAF Trust
Consumer and commercial lending
Australia
100
100
International Acceptance Trust8
Consumer and commercial lending
Australia
-
100
Thorn ABS Warehouse Series No.19
Issuer of ABS
Australia
100
-
Resimac Group Limited Employee Share Trust10
Employee share trust
Australia
-
-
5 This does not represent holding in capital units, percentage ownership represents control of these Trusts.
6 Deregistered on 1 July 2023.
7 Deregistered on 31 December 2023.
8 Deregistered on 18 March 2024.
9 Acquired on 1 September 2023.
10 Ownership interest is 0% however a 100% owned subsidiary (RESIMAC EST PTY LTD) acts as trustee.
Special purpose entities - securitised trusts and funding warehouses
The Group has established special purpose entities to support the specific funding needs of the Group’s
securitisation programme with the aim to:
• conduct securitisation activities funded by short term warehouse facilities provided by reputable lenders; and
• hold securitised assets and issue bonds.
The special purpose entities meet the criteria of being controlled entities under AASB 10 Consolidated Financial
Statements and therefore are included in these consolidated financial statements.
25. Asset acquisition
On 20 June 2023, Resimac entered into a sale and purchase deed with Thorn Australia Pty Limited and Thornmoney
Pty Limited (collectively “Thorn”) in relation to the purchase of Thorn’s asset finance portfolio. The transaction was
completed on 1 September 2023 and is part of the asset finance segment. Thorn and Resimac are related entities
with common Shareholders and Directors.
This portfolio acquisition transaction has been accounted as an asset acquisition in line with the requirements of
AASB 9 Financial Instrument.
The fair value assets and liabilities recognised as a result of the portfolio acquisition are as follows:
Fair value
Assets
$'000
Cash and cash equivalents
6,773
Loans and advances
133,980
Other assets
408
Total assets
141,161
Liabilities
Interest bearing liabilities
(124,780)
Other liabilities
(1,582)
Total liabilities
(126,362)
Fair value of identified net assets
14,799
Gain/loss on acquisition
-
Purchase consideration
14,799
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 117
116 |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNRECOGNISED ITEMS
Unrecognised
items.
For the year ended
30 June 2024
26. Commitments and contingencies
26.1. Commitments
On 25 January 2024 Resimac entered in a sale and purchase agreement to acquire the remaining 49% shares in
23 Degrees Capital Partners Pty Ltd (operating as Sonder) on 1 July 2024. This increased Resimac’s interest in 23
Degrees Capital Partners Pty Ltd from 51% to 100%.
The Directors were not aware of any other commitments (including capital commitments) as at the end of the
financial year or arising since balance date.
26.2. Contingencies
Lease guarantees
The Group has provided guarantees in respect of the leases over its premises of $3,456,682 (FY23: $992,600).
The Directors were not aware of any other contingent liabilities as at the end of the financial year or arising since
balance date.
27. Subsequent events
27.1. Acquisition of shares in 23 Degrees Capital Partners Pty Ltd
See Note 26.1 for sale and purchase agreement entered into with 23 Degrees Capital Partners Pty Ltd.
27.2. Resignation of Chief Executive Officer
On 9 July 2024, Mr. Scott McWilliam resigned from his role as the Chief Executive Officer of Resimac. Mr. Scott
McWilliam has taken a period of leave before his employment contract ends on 1 September 2024. Non-Executive
Director, Ms Susan Hansen, has been appointed as interim CEO until a permanent CEO is appointed.
27.3. Final dividend declared
The Board of Resimac Group Ltd declared a fully-franked final dividend of $0.035 per share. The record date will be
6 September 2024. The payment date will be 20 September 2024. The dividend has not been provided for in this
financial report.
Other than the above events, there have been no circumstances arising since 30 June 2024 that have significantly
affected or may significantly affect:
(a) The operations;
(b) The results of those operations; or
(c) The state of affairs of the Group in future financial years.
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OTHER
Other.
For the year ended
30 June 2024
28. Auditor’s remuneration
FY24
FY23
Deloitte Touche Tohmatsu
$'000
$'000
Audit or review of financial reports
• Group
429,608
366,033
• Subsidiaries
729,417
708,267
1,159,025
1,074,300
Statutory assurance services required by legislation to be provided by the auditor
100,273
95,498
Other assurance and agreed-upon procedures under other legislation or contractual
arrangements
87,150
153,347
Other services - tax consulting services
• Tax consulting services
4,935
-
• Technology consulting services
194,480
-
199,415
-
Total remuneration of Deloitte Touche Tohmatsu
1,545,863
1,323,145
Non-Deloitte Touche Tohmatsu audit firms
Other services
• Tax compliance services
186,760
118,616
• Tax consulting services
52,889
-
• Other advisory services
67,708
-
Total remuneration of Non-Deloitte Touche Tohmatsu audit firms
307,357
118,616
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 119
118 |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OTHER
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OTHER
29. Related party transactions
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company,
have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group
and other related parties are disclosed below.
During the year, the Group entered into the following transaction with a related party that is not a member of the
Group:
FY24
FY23
FY24
FY23
$'000
$'000
$'000
$'000
Director’s related entity
9471
760
1,8002
2,000
947
760
1,800
2,000
Income received
Expenses paid
1 Interest received on related party loan to Somers Limited.
2 Professional Indemnity and Directors & Officers Liability insurance premiums paid to General Provincial Insurance Ltd. This insurance policy was
entered into at commercial arms length terms.
Sales to related parties occur at arm’s length on commercial terms in the ordinary course of business in accordance
with the terms and conditions outlined in the relevant commercial agreements with each party.
The following balances were outstanding at the end of the reporting period:
FY24
FY23
FY24
FY23
$'000
$'000
$'000
$'000
Director’s related entity3
-
8,000
-
-
Other related parties of Resimac Group Ltd4
20,787
18,016
-
-
20,787
26,016
-
-
Amounts owed
by related parties
Amounts owed
to related parties
3 Short-term interest bearing loan provided to Somers Limited. Interest is charged on arm’s length terms.
4 Includes residential mortgages to KMP or related parties lent in ordinary course of business at arm’s lengths.
28.1. Non-audit services
The auditor of the Group is Deloitte Touche Tohmatsu (Deloitte). It is the Group’s policy to employ Deloitte on
assignments additional to its statutory audit duties, in compliance with the Group’s independence policies, where
Deloitte’s expertise and experience with the Group are important.
The total non-audit services fees of $286,565 represents 18.5% of the total fees paid or payable to Deloitte and
network firms for the year ended 30 June 2024 (FY23: $153,347 or 11.6%).
During the year
ended 30 June
2024, $3.8b of
new RMBS and
$350m of new
ABS were issued
to facilitate AUM
growth, optimise
term duration and
funding costs.
Amounts owed by related parties are secured
and will be settled in cash. No guarantees have
been given or received. No expense has been
recognised in the current or prior years for bad
or doubtful debts in respect of the amount
owed by related parties.
Compensation of KMP
The remuneration disclosures of Directors and
other members of KMP during the year are
provided in sections 1 to 9 of the Remuneration
Report on pages 28 to 41 of this financial
report designated as audited and forming part
of the Directors’ Report.
The remuneration disclosures are for Resimac
KMP only as presented in the Remuneration
Report.
FY24
FY23
KMP compensation
$'000
$'000
Short-term benefits
2,302,717
2,859,007
Post-employment
benefits
119,170
134,392
Long-term benefits
42,047
36,116
Termination
benefits
40,247
20,767
Share-based
payments
-
438,750
2,504,181
3,489,032
The remuneration of Directors and KMP
is determined by the Remuneration and
Nomination Committee having regard to the
performance of individuals and market trends.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 121
120 |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OTHER
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OTHER
30.1. Guarantees, contingent liabilities and
contingent assets
At 30 June 2024, there are no financial guarantees,
contingent assets or contingent liabilities with respect
to the parent company. (FY23: Nil).
30.2. Accounting policies
The accounting policies of the parent entity, which
have been applied in determining the financial
information shown above, are the same as those
applied in the consolidated financial statements.
31. Share-based payments
30. Parent disclosures
The parent company of the Group, as at and throughout the financial year ended 30 June 2024, was Resimac Group
Ltd.
Presented below is supplementary information about the parent entity.
FY24
FY23
Statement of financial position
$'000
$'000
Assets
Current
17,011
18,333
Non-current
371,029
416,330
388,040
434,663
Liabilities
Current
5,191
14,510
Non-current
26,539
31,169
31,730
45,679
Net assets
356,310
388,984
Equity
Issued capital
185,646
185,646
Reserves
3,124
2,214
Retained earnings
167,540
201,124
356,310
388,984
Attributable to members of the parent:
(Loss)/Profit after tax
(3,515)
(4,834)
Total comprehensive income for the period
(3,515)
(4,834)
31.1. Employee share option plan of the Company
The Company has a share option scheme (pursuant
to the Resimac Group Ltd Employee Share Option and
Rights Plan) for senior employees of the Company. In
accordance with the terms of the Plan, as approved
by shareholders at the 2017 Annual General Meeting,
senior employees may be granted options to purchase
ordinary shares.
Each employee share option converts into one
ordinary share of the Company on exercise. No
amounts are paid or payable by the recipient on
receipt of the option. The options carry neither
rights to dividends nor voting rights. Options may be
exercised at any time from the date of vesting to the
date of their expiry.
Long-Term Incentive (LTI#2) Share Options - CEO
and General Managers (GMs)
Under the Group’s LTI share options and rights plan,
the CEO and GMs received options over ordinary
shares and a potential cash component of $2.4
million. Options were granted on 15 August 2019
and the vesting date for all of these granted options
was 31 August 2022, subject to the Group achieving
Net Profit After Tax (NPAT) growth hurdles, digital
transformation hurdles, compliance hurdles and
remaining employed with the Group until the vesting
date.
The LTI#2 is administered by The Trustee for the
Resimac Group Limited Employee Share Trust. The
trust is consolidated in accordance with Group’s
consolidation policy. The trustee subscribes for the
shares issued by the Group and allocates to the
employees on exercise of options. Shares held by the
trust and not yet allocated to employees at the end of
the reporting period are shown as treasury shares in
the financial statements.
The fair value of share options under LTI#2 was
recognised as an employee benefits expense with a
corresponding increase in equity. The total expense
was recognised over the vesting period, which was
the period over which all of the specified vesting
conditions were to be satisfied. At the end of each
period, the Group revises its estimates of the
number of options that are expected to vest based
on the non-market vesting and service conditions.
It recognises the impact of the revision to original
estimates, if any, in the consolidated statement of
profit or loss with a corresponding adjustment to
equity.
The fair value of the amounts payable to the CEO and
GMs in respect of cash component is recognised as
an expense with a corresponding increase in liabilities,
over the vesting period. The liabilities are remeasured
to fair value at each reporting date and are presented
as employee benefit obligations in the consolidated
statement of financial position.
A cash component LTI of $1.7 million was paid to the
CEO and senior management in September 2022.
Furthermore 785,000 share options were exercised in
FY23 and 1,080,000 share options were exercised in
FY24.
At 30 June 2024 1,660,000 vested options remain
outstanding to be exercised on or before the expiry
date of 30 June 2025.
Employee Share Plan (ESP)
The Group commenced the Resimac Group Employee
Share Scheme (ESS) in March 2021 whereby eligible
employees are offered up to $1,000 worth of fully paid
Resimac ordinary shares for no cash consideration.
Shares allocated under the ESS cannot be sold until
the earlier of three years after allocation or the time
when the participant is no longer employed by the
Group.
The ESS offer for FY24 was made on 10 October
2023. A total of 205 (FY23: 195) staff participated in
this offer. The participants were each allocated 1,106
(FY23: 1,025) fully allocated shares based on the offer
amount of $1,000 and the 5 day volume weighted
average price (VWAP) of $0.9036 (FY23: $0.9754),
resulting in a total of 226,730 (FY23: 199,875) shares
being allocated. The shares were allocated to staff for
no cash consideration. For the financial year ended 30
June 2024, share-based payment expense relating to
the ESS totalled $198,416 (FY23: $191,880).
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 123
122 |
The table below provides the details of options issued:
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OTHER
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OTHER
31.2. Fair value of options
The primary valuation approach adopted for the valuation of granted options is the Black-Scholes method, which entails the determination of the value
of the options using comparable market equivalent information. In determining the fair value of each of the share options, a number of statistical and
probability based calculations have been considered.
The following table lists the inputs to the model used:
Number of
options
Tranche
Grand date
Fair value
at grant
date ($)
Exercise
price of
option
($)
Vesting date
Expiry date
Options
forfeited
Options
exercised
Number of
options held
at 30 June
2024
Number
of options
vested at 30
June 2024
Number
of options
unvested
at 30 June
2024
Acquired by
McWilliam, Scott
300,000
Tranche 1
15/8/2019
0.20
0.65
31/8/2022
30/6/2025
-
-
300,000
300,000
-
McWilliam, Scott
300,000
Tranche 2
15/8/2019
0.20
0.65
31/8/2022
30/6/2025
-
-
300,000
300,000
-
McWilliam, Scott
300,000
Tranche 3
15/8/2019
0.20
0.65
31/8/2022
30/6/2025
-
-
300,000
300,000
-
GMs
1,000,000
Tranche 1
15/8/2019
0.20
0.65
31/8/2022
30/6/2025
(125,000)
(625,000)
250,000
250,000
-
GMs
1,000,000
Tranche 2
15/8/2019
0.20
0.65
31/8/2022
30/6/2025
(125,000)
(625,000)
250,000
250,000
-
GMs
1,000,000
Tranche 3
15/8/2019
0.20
0.65
31/8/2022
30/6/2025
(125,000)
(615,000)
260,000
260,000
-
Employee Share Plan
87,478
N/A
12/4/2021
2.14
N/A
12/4/2021
12/4/2021
-
(87,478)
-
-
-
Employee Share Plan
99,560
N/A
22/10/2021
1.84
N/A
22/10/2021
22/10/2021
-
(99,560)
-
-
-
Employee Share Plan
199,875
N/A
10/10/2022
0.96
N/A
10/10/2022
10/10/2022
-
(199,875)
-
-
-
Employee Share Plan
226,730
N/A
10/10/2023
0.92
N/A
10/10/2023
10/10/2023
-
(226,730)
-
-
-
5,513,643
(375,000)
(2,478,643)
1,660,000
1,660,000
-
Tranche
Grand date
share price ($)
Exercise
price ($)
Term
(years)
Annual
volatility
Risk-free
interest rate
Dividend
yield
Call option
value
Issued
options
Grant date
15 August 2019
Tranche 1
0.76
0.65
5.9
25-30%
0.75%
2%
$0.18-$0.21
300,000
15 August 2019
Tranche 2
0.76
0.65
5.9
25-30%
0.75%
2%
$0.18-$0.21
300,000
15 August 2019
Tranche 3
0.76
0.65
5.9
25-30%
0.75%
2%
$0.18-$0.21
300,000
15 August 2019
Tranche 1
0.76
0.65
5.9
25-30%
0.75%
2%
$0.18-$0.21
1,000,000
15 August 2019
Tranche 2
0.76
0.65
5.9
25-30%
0.75%
2%
$0.18-$0.21
1,000,000
15 August 2019
Tranche 3
0.76
0.65
5.9
25-30%
0.75%
2%
$0.18-$0.21
1,000,000
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 125
124 |
31.3. Movements in share options during the period
The following reconciles the share options outstanding at the beginning and the end of the period:
Number of
LTI options
LTI#2
Number of
ESP options
Number of
options total
Weighted
average
fair value ($)
LTI#2
Weighted
average
fair value ($)
ESP
Unvested options at 1 July 2023
-
-
-
-
Vested options at 1 July 2023
2,740,000
-
2,740,000
0.20
-
Options held at 1 July 2023
2,740,000
-
2,740,000
0.20
-
Granted during the year
-
226,730
226,730
-
0.92
Exercised during the year
(1,080,000)
(226,730)
(1,306,730)
0.94
0.92
Unvested options at 30 June 2024
-
-
-
-
Vested options at 30 June 2024
1,660,000
-
1,660,000
0.20
-
Options held at 30 June 2024
1,660,000
-
1,660,000
0.20
-
31.4. Share options exercised during the period
The Trustee for the Resimac Group Limited Employee Share Trust allocated 1,080,000 treasury shares to GMs
on their exercise of LTI#2 on 31 August 2023, 30 October 2023, 7 June 2024 and 20 June 2024. 226,730 shares
allocated to employees in FY24 under the ESP are held in the Trust on behalf of the employees.
32.2. New and revised accounting standards and interpretations on issue but not yet effective
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June
2024 reporting periods and have not been adopted early by the Group. The Group’s assessment of the impact of
these new standards and interpretations is set out below.
Standard / Amendment
Effective for annual
reporting periods
beginning on or after:
AASB 2020-1
Amendments to Australian Accounting Standards – Classification of Liabilities
as Current or Non-current; AASB 2020-6 Amendments to Australian Accounting
Standards - Classification of Liabilities as Current or Non-current - Deferral of
effective date; and AASB 2022-6 Amendment Non-current Liabilities with Covenants
1 January 2024
AASB 2022-5
Amendments to Australian Accounting Standards - Lease Liability in a Sale and
Leaseback
1 July 2024
AASB 2023-1
Amendments to Australian Accounting Standards - Supplier Finance Arrangements
1 July 2024
AASB 2023-5
Amendments to Australian Accounting Standards - Lack of Exchangeability
1 July 2025
AASB 2024-2
Amendments to Australian Accounting Standards - Classification and Measurement
of Financial Instruments
1 January 2026
AASB 18
Presentation and Disclosure in Financial Statements
1 January 2027
The Group is currently undertaking its assessment of
the impacts of the standards and interpretations listed
above.
32.3. Goods and services tax (GST)
Revenues, expenses and assets are recognised net of
the amount of GST except:
• where the GST incurred on a purchase of goods
and services is not recoverable from the taxation
authority, in which case the GST is recognised as
part of the costs of acquisition of the asset or as
part of the expense item as applicable; and
• receivables and payables which are stated with
the amount of GST included.
The net amount of GST recoverable from, or payable
to, the taxation authority is included as part of
receivables or payables in the statement of financial
position.
Cash flows are included in the statement of cash flows
on a gross basis and the GST component of cash
flows arising from investing and financing activities,
which is recoverable from, or payable to, the taxation
authority is classified as operating cash flows.
Commitments and contingencies are disclosed net of
the amount of GST recoverable from, or payable to,
the taxation authority.
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OTHER
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OTHER
32. Other accounting policies
32.1. Application of new and revised accounting standards
The Group has applied the required amendments to Standards and Interpretations that are relevant to its operations
and mandatorily effective for the first time for the financial year commencing 1 July 2023. These amendments
did not have any material impact on the disclosures or on the amounts recognised in the consolidated financial
statements.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 127
126 |
Basis of preparation
Entity type
Place of
incorporation/
formation
% of Share
capital held
Tax
residency
Entity name
Resimac Group Ltd
Body Corporate
Australia
N/A
Australia
Access Network Management Pty Ltd
Body Corporate
Australia
100
Australia
Auspak Financial Services Pty Ltd
Body Corporate
Australia
100
Australia
Clarence Street Finance Pty Ltd
Body Corporate
Australia
100
Australia
Clarence Street Funding No.1 Pty Ltd
Body Corporate
Australia
99.9
Australia
Clarence Street Funding No.2 Pty Ltd
Body Corporate
Australia
100
Australia
Clarence Street Funding No.3 Pty Ltd
Body Corporate
Australia
100
Australia
Clarence Street Funding No.4 Pty Ltd
Body Corporate
Australia
100
Australia
Clarence Street Funding No.5 Pty Ltd
Body Corporate
Australia
99.9
Australia
Clarence Street Funding No.6 Pty Ltd
Body Corporate
Australia
100
Australia
Clarence Street Funding No.7 Pty Ltd
Body Corporate
Australia
100
Australia
Clarence Street Funding No.8 Pty Ltd
Body Corporate
Australia
100
Australia
Clarence Street Funding No.9 Pty Ltd
Body Corporate
Australia
100
Australia
Clarence Street Funding No.10 Pty Ltd
Body Corporate
Australia
100
Australia
Clarence Street Funding No.11 Pty Ltd
Body Corporate
Australia
100
Australia
Clarence Street Funding No.12 Pty Ltd
Body Corporate
Australia
100
Australia
Clarence Street Funding No.13 Pty Ltd
Body Corporate
Australia
100
Australia
FAI First Mortgage Pty Ltd
Body Corporate
Australia
100
Australia
Fiduciary Services Pty Ltd
Body Corporate
Australia
100
Australia
Homeloans.com.au Pty Ltd
Body Corporate
Australia
100
Australia
1 RESIMAC EST Pty Ltd is the trustee of Resimac Group Limited Employee Share Trust.
2 Ownership interest is 0% however the Group have Board control.
3 Ownership interest is 0% however the Group have Board control.
4 RHG Mortgage Securities Pty Ltd is the trustee for the Avoca Funding Series Master Trust. Ownership interest is 0% however the Group have
Board control.
5 RMC Fiduciary Services Pty Ltd is the trustee for RAF Trust. Ownership interest is 0% however the Group have Board control.
6 RESIMAC Home Loans Limited is the trustee for NZF Mortgage Warehouse A Trust.
| TAX TRANSPARENCY DISCLOSURE
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
| TAX TRANSPARENCY DISCLOSURE
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
Consolidated entity
disclosure statement
The consolidated entity disclosure statement has been prepared in accordance with subsection 295(3A)(a) of
the Corporations Act 2001. The entities listed in the statement are Resimac Group Limited and all the entities it
controls in accordance with AASB 10 Consolidated Financial Statements. The percentage of share capital disclosed
for bodies corporate included in the statement represents the economic interest consolidated in the consolidated
financial statements.
In developing the disclosures in the statement, tax law in the country of incorporation has been used to support the
determination of tax residency.
Consolidated entity disclosure statement as of 30 June 2024 are as follows:
Entity type
Place of
incorporation/
formation
% of Share
capital held
Tax
residency
Entity name
Housing Financial Services Pty Ltd
Body Corporate
Australia
100
Australia
Homeloans Pty Ltd
Body Corporate
Australia
100
Australia
Independent Mortgage Corporation Pty Ltd
Body Corporate
Australia
100
Australia
National Mutual Pty Ltd
Body Corporate
Australia
100
Australia
RAF Structured Finance Pty Ltd
Body Corporate
Australia
100
Australia
Resimac Asset Finance Pty Ltd
Body Corporate
Australia
100
Australia
RESIMAC EST PTY LTD1
Body Corporate
Australia
100
Australia
RESIMAC Capital Markets Pty Ltd
Body Corporate
Australia
100
Australia
RESIMAC Financial Services Pty Ltd
Body Corporate
Australia
100
Australia
RESIMAC Limited
Body Corporate
Australia
100
Australia
RESIMAC Leasing Pty Ltd
Body Corporate
Australia
100
Australia
RESIMAC Premier Warehouse No.1 Pty Ltd2
Body Corporate
Australia
-
Australia
RHG Home Loan Pty Ltd
Body Corporate
Australia
100
Australia
RHG Mortgage Corporation Pty Ltd3
Body Corporate
Australia
-
Australia
RHG Mortgage Securities Pty Ltd4
Body Corporate
Australia
-
Australia
RMC Fiduciary Services Pty Ltd5
Body Corporate
Australia
-
Australia
SF Mortgage Pty Ltd
Body Corporate
Australia
100
Australia
The Servicing Company Pty Ltd
Body Corporate
Australia
100
Australia
23 Degrees Capital Partners Pty Ltd
Body Corporate
Australia
51
Australia
Prime Insurance Group Limited
Body Corporate
Bermuda
100
Bermuda
Parnell Road Funding No.1 Limited
Body Corporate
New Zealand
100
New Zealand
Parnell Road Funding No.2 Limited
Body Corporate
New Zealand
100
New Zealand
RESIMAC Financial Services Limited
Body Corporate
New Zealand
100
New Zealand
RESIMAC Financial Securities Limited
Body Corporate
New Zealand
100
New Zealand
RESIMAC Financial Securitisation Limited
Body Corporate
New Zealand
100
New Zealand
RESIMAC Home Loans Limited6
Body Corporate
New Zealand
100
New Zealand
RESIMAC NZ Home Loans Limited
Body Corporate
New Zealand
100
New Zealand
0508 Home Loans Limited
Body Corporate
New Zealand
100
New Zealand
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 129
128 |
| TAX TRANSPARENCY DISCLOSURE
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
| DIRECTORS' DECLARATION
Entity type
Place of
incorporation/
formation
% of Share
capital held
Tax
residency
Entity name
0800 Home Loans Limited
Body Corporate
New Zealand
100
New Zealand
Avoca Master Trust
Trust
Australia
-
Australia
RAF Trust
Trust
Australia
-
Australia
Resimac Bastille Master Trust
Trust
Australia
-
Australia
Resimac Group Limited Employee Share Trust
Trust
Australia
-
Australia
Resimac Triomphe Master Trust
Trust
Australia
-
Australia
RMC Enhanced Income Fund
Trust
Australia
-
Australia
Thorn ABS Warehouse Series No.1
Trust
Australia
-
Australia
NZF Mortgages Warehouse A Trust
Trust
New Zealand
-
New Zealand
Resimac Versailles Trust
Trust
New Zealand
-
New Zealand
Resimac Victoire Warehouse No.1 Trust
Trust
New Zealand
-
New Zealand
Resimac Premier Series 2021-2
Trust
New Zealand
-
New Zealand
Directors'
declaration.
Resimac Group Ltd
and its controlled entities
The Directors declare that:
(a) in the Directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its
debts as and when they become due and payable;
(b) in the Directors’ opinion, the attached financial statements are in compliance with Australian Accounting
Standards as stated in the financial statements;
(c) in the Directors’ opinion, the attached financial statements and notes thereto are in accordance with the
Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the
financial position and performance of the consolidated entity and the company;
(d) the Directors have been given the declarations required by s295.A of the Corporations Act 2001; and
(e) in the Director’s opinion, the attached consolidated entity disclosure statement on page 126 is true and
correct.
Signed in accordance with a resolution of the Directors pursuant to s295(5) of the Corporations Act 2001.
On behalf of the Directors
Warren McLeland
Chairman
Sydney
28 August 2024
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 131
130 |
| INDEPENDENT AUDITOR'S REPORT
>ŝĂďŝůŝƚLJůŝŵŝƚĞĚďLJĂƐĐŚĞŵĞĂƉƉƌŽǀĞĚƵŶĚĞƌWƌŽĨĞƐƐŝŽŶĂů^ƚĂŶĚĂƌĚƐ>ĞŐŝƐůĂƚŝŽŶ͘
DĞŵďĞƌŽĨĞůŽŝƚƚĞƐŝĂWĂĐŝĨŝĐ>ŝŵŝƚĞĚĂŶĚƚŚĞĞůŽŝƚƚĞŽƌŐĂŶŝƐĂƚŝŽŶ͘
ĞůŽŝƚƚĞdŽƵĐŚĞdŽŚŵĂƚƐƵ
EϳϰϰϵϬϭϮϭϬϲϬ
YƵĂLJYƵĂƌƚĞƌdŽǁĞƌ
>ĞǀĞůϰϲ͕ϱϬƌŝĚŐĞ^ƚ
^LJĚŶĞLJ͕E^t
ƵƐƚƌĂůŝĂ͕ϮϬϬϬ
dĞů͗нϲϭϮϵϯϮϮϳϬϬϬ
&Ădž͗нϲϭϮϵϯϮϮϳϬϬϭ
ǁǁǁ͘ĚĞůŽŝƚƚĞ͘ĐŽŵ͘ĂƵ
Independent Auditor’s Report to theDĞŵďĞƌƐŽĨZĞƐŝŵĂĐ
'ƌŽƵƉ>ŝŵŝƚĞĚ
ZĞƉŽƌƚŽŶƚŚĞƵĚŝƚŽĨƚŚĞ&ŝŶĂŶĐŝĂůZĞƉŽƌƚ
KƉŝŶŝŽŶ
We have audited the financial report of Resimac Group Limited (the “Company”) and its subsidiaries (the “Group”)
ǁŚŝĐŚĐŽŵƉƌŝƐĞƐƚŚĞĐŽŶƐŽůŝĚĂƚĞĚƐƚĂƚĞŵĞŶƚŽĨĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶĂƐĂƚϯϬ:ƵŶĞϮϬϮϰ͕ƚŚĞĐŽŶƐŽůŝĚĂƚĞĚƐƚĂƚĞŵĞŶƚ
ŽĨƉƌŽĨŝƚŽƌůŽƐƐ͕ƚŚĞĐŽŶƐŽůŝĚĂƚĞĚƐƚĂƚĞŵĞŶƚŽĨĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͕ƚŚĞĐŽŶƐŽůŝĚĂƚĞĚƐƚĂƚĞŵĞŶƚŽĨĐŚĂŶŐĞƐŝŶ
ĞƋƵŝƚLJ ĂŶĚ ƚŚĞ ĐŽŶƐŽůŝĚĂƚĞĚ ƐƚĂƚĞŵĞŶƚ ŽĨ ĐĂƐŚ ĨůŽǁƐ ĨŽƌ ƚŚĞ LJĞĂƌ ƚŚĞŶ ĞŶĚĞĚ͕ ĂŶĚ ŶŽƚĞƐ ƚŽ ƚŚĞ ĨŝŶĂŶĐŝĂů
ƐƚĂƚĞŵĞŶƚƐ͕ŝŶĐůƵĚŝŶŐŵĂƚĞƌŝĂůĂĐĐŽƵŶƚŝŶŐƉŽůŝĐLJŝŶĨŽƌŵĂƚŝŽŶand other explanatory information, the directors’
ĚĞĐůĂƌĂƚŝŽŶĂŶĚƚŚĞŽŶƐŽůŝĚĂƚĞĚ ŶƚŝƚLJŝƐĐůŽƐƵƌĞ^ƚĂƚĞŵĞŶƚ͘
/ŶŽƵƌŽƉŝŶŝŽŶ͕ƚŚĞĂĐĐŽŵƉĂŶLJŝŶŐĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽĨƚŚĞ'ƌŽƵƉŝƐŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭ͕
ŝŶĐůƵĚŝŶŐ͗
•
'ŝǀŝŶŐ Ă ƚƌƵĞ ĂŶĚ ĨĂŝƌ ǀŝĞǁ ŽĨ ƚŚĞ Group’s ĨŝŶĂŶĐŝĂů ƉŽƐŝƚŝŽŶ ĂƐ Ăƚ ϯϬ :ƵŶĞ ϮϬϮϰ ĂŶĚ ŽĨ ƚŚĞŝƌ ĨŝŶĂŶĐŝĂů
ƉĞƌĨŽƌŵĂŶĐĞĨŽƌƚŚĞLJĞĂƌƚŚĞŶĞŶĚĞĚ͖ĂŶĚ
•
ŽŵƉůLJŝŶŐǁŝƚŚƵƐƚƌĂůŝĂŶĐĐŽƵŶƚŝŶŐ^ƚĂŶĚĂƌĚƐĂŶĚƚŚĞŽƌƉŽƌĂƚŝŽŶƐZĞŐƵůĂƚŝŽŶƐϮϬϬϭ͘
ĂƐŝƐĨŽƌKƉŝŶŝŽŶ
tĞ ĐŽŶĚƵĐƚĞĚ ŽƵƌ ĂƵĚŝƚ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ƵƐƚƌĂůŝĂŶ ƵĚŝƚŝŶŐ ^ƚĂŶĚĂƌĚƐ͘ KƵƌ ƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐ ƵŶĚĞƌ ƚŚŽƐĞ
ƐƚĂŶĚĂƌĚƐĂƌĞfurther described in the Auditor’s Responsibilities for the Audit of the Financial Report section of
ŽƵƌƌĞƉŽƌƚ͘tĞĂƌĞŝŶĚĞƉĞŶĚĞŶƚŽĨƚŚĞ'ƌŽƵƉŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞĂƵĚŝƚŽƌŝŶĚĞƉĞŶĚĞŶĐĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞ
ŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭand the ethical requirements of the Accounting Professional & Ethical Standards Board’s
W ^ϭϭϬŽĚĞŽĨ ƚŚŝĐƐĨŽƌWƌŽĨĞƐƐŝŽŶĂůĐĐŽƵŶƚĂŶƚƐ;ŝŶĐůƵĚŝŶŐ/ŶĚĞƉĞŶĚĞŶĐĞ^ƚĂŶĚĂƌĚƐͿ;ƚŚĞŽĚĞͿƚŚĂƚĂƌĞ
ƌĞůĞǀĂŶƚƚŽŽƵƌĂƵĚŝƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŝŶƵƐƚƌĂůŝĂ͘tĞŚĂǀĞĂůƐŽĨƵůĨŝůůĞĚŽƵƌŽƚŚĞƌĞƚŚŝĐĂůƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐŝŶ
ĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽĚĞ͘
tĞĐŽŶĨŝƌŵƚŚĂƚƚŚĞŝŶĚĞƉĞŶĚĞŶĐĞĚĞĐůĂƌĂƚŝŽŶƌĞƋƵŝƌĞĚďLJƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭ͕ǁŚŝĐŚŚĂƐďĞĞŶŐŝǀĞŶƚŽ
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s
ƌĞƉŽƌƚ͘
tĞďĞůŝĞǀĞƚŚĂƚƚŚĞĂƵĚŝƚĞǀŝĚĞŶĐĞǁĞŚĂǀĞŽďƚĂŝŶĞĚŝƐƐƵĨĨŝĐŝĞŶƚĂŶĚĂƉƉƌŽƉƌŝĂƚĞƚŽƉƌŽǀŝĚĞĂďĂƐŝƐĨŽƌŽƵƌ
ŽƉŝŶŝŽŶ͘
<ĞLJƵĚŝƚDĂƚƚĞƌƐ
<ĞLJĂƵĚŝƚŵĂƚƚĞƌƐĂƌĞƚŚŽƐĞŵĂƚƚĞƌƐƚŚĂƚ͕ŝŶŽƵƌƉƌŽĨĞƐƐŝŽŶĂůũƵĚŐĞŵĞŶƚ͕ǁĞƌĞŽĨŵŽƐƚƐŝŐŶŝĨŝĐĂŶĐĞŝŶŽƵƌĂƵĚŝƚŽĨ
ƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚĨŽƌƚŚĞĐƵƌƌĞŶƚƉĞƌŝŽĚ͘dŚĞƐĞŵĂƚƚĞƌƐǁĞƌĞĂĚĚƌĞƐƐĞĚŝŶƚŚĞĐŽŶƚĞdžƚŽĨŽƵƌĂƵĚŝƚŽĨƚŚĞ
ĨŝŶĂŶĐŝĂůƌĞƉŽƌƚĂƐĂǁŚŽůĞ͕ĂŶĚŝŶĨŽƌŵŝŶŐŽƵƌŽƉŝŶŝŽŶƚŚĞƌĞŽŶ͕ĂŶĚǁĞĚŽŶŽƚƉƌŽǀŝĚĞĂƐĞƉĂƌĂƚĞŽƉŝŶŝŽŶŽŶ
ƚŚĞƐĞŵĂƚƚĞƌƐ͘
| INDEPENDENT AUDITOR'S DECLARATION
ĞůŽŝƚƚĞdŽƵĐŚĞdŽŚŵĂƚƐƵ
EϳϰϰϵϬϭϮϭϬϲϬ
YƵĂLJYƵĂƌƚĞƌdŽǁĞƌ
>ĞǀĞůϰϲ͕ϱϬƌŝĚŐĞ^ƚ
^LJĚŶĞLJ͕E^t
ƵƐƚƌĂůŝĂ͕ϮϬϬϬ
dĞů͗нϲϭϮϵϯϮϮϳϬϬϬ
&Ădž͗нϲϭϮϵϯϮϮϳϬϬϭ
ǁǁǁ͘ĚĞůŽŝƚƚĞ͘ĐŽŵ͘ĂƵ
ϮϴƵŐƵƐƚϮϬϮϰ
ŽĂƌĚŽĨŝƌĞĐƚŽƌƐ
ZĞƐŝŵĂĐ'ƌŽƵƉ>ŝŵŝƚĞĚ
>ĞǀĞůϵ͕ϰϱůĂƌĞŶĐĞ^ƚƌĞĞƚ
^LJĚŶĞLJ͕E^tϮϬϬϬ
ĞĂƌŽĂƌĚDĞŵďĞƌƐ͕
Auditor’s IndependenĐĞĞĐůĂƌĂƚŝŽŶƚŽZĞƐŝŵĂĐ'ƌŽƵƉ>ŝŵŝƚĞĚ
/ŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƐĞĐƚŝŽŶϯϬϳŽĨƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭ͕/ĂŵƉůĞĂƐĞĚƚŽƉƌŽǀŝĚĞƚŚĞĨŽůůŽǁŝŶŐĚĞĐůĂƌĂƚŝŽŶ
ŽĨŝŶĚĞƉĞŶĚĞŶĐĞƚŽƚŚĞZĞƐŝŵĂĐ'ƌŽƵƉ>ŝŵŝƚĞĚĂŶĚŝƚƐĐŽŶƚƌŽůůĞĚĞŶƚŝƚŝĞƐ͘
ƐůĞĂĚĂƵĚŝƚƉĂƌƚŶĞƌĨŽƌƚŚĞĂƵĚŝƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽĨZĞƐŝŵĂĐĨŽƌƚŚĞLJĞĂƌĞŶĚĞĚϯϬ:ƵŶĞϮϬϮϰ͕/ĚĞĐůĂƌĞ
ƚŚĂƚƚŽƚŚĞďĞƐƚŽĨŵLJŬŶŽǁůĞĚŐĞĂŶĚďĞůŝĞĨ͕ƚŚĞƌĞŚĂǀĞďĞĞŶŶŽĐŽŶƚƌĂǀĞŶƚŝŽŶƐŽĨ͗
• dŚĞĂƵĚŝƚŽƌŝŶĚĞƉĞŶĚĞŶĐĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭŝŶƌĞůĂƚŝŽŶƚŽƚŚĞĂƵĚŝƚ͖ĂŶĚ
• ŶLJĂƉƉůŝĐĂďůĞĐŽĚĞŽĨƉƌŽĨĞƐƐŝŽŶĂůĐŽŶĚƵĐƚŝŶƌĞůĂƚŝŽŶƚŽƚŚĞĂƵĚŝƚ͘
zŽƵƌƐĨĂŝƚŚĨƵůůLJ
>K/dd dKh, dK,Dd^h
,ĞĂƚŚĞƌĂŝƐƚĞƌ
WĂƌƚŶĞƌ
ŚĂƌƚĞƌĞĚĐĐŽƵŶƚĂŶƚƐ
>ŝĂďŝůŝƚLJůŝŵŝƚĞĚďLJĂƐĐŚĞŵĞĂƉƉƌŽǀĞĚƵŶĚĞƌWƌŽĨĞƐƐŝŽŶĂů^ƚĂŶĚĂƌĚƐ>ĞŐŝƐůĂƚŝŽŶ͘
DĞŵďĞƌŽĨĞůŽŝƚƚĞƐŝĂWĂĐŝĨŝĐ>ŝŵŝƚĞĚĂŶĚƚŚĞĞůŽŝƚƚĞŽƌŐĂŶŝƐĂƚŝŽŶ͘
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 133
132 |
| INDEPENDENT AUDITOR'S REPORT
KƵƌŽƉŝŶŝŽŶŽŶƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚĚŽĞƐŶŽƚĐŽǀĞƌƚŚĞŽƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶĂŶĚǁĞĚŽŶŽƚĞdžƉƌĞƐƐĂŶLJĨŽƌŵŽĨ
ĂƐƐƵƌĂŶĐĞĐŽŶĐůƵƐŝŽŶƚŚĞƌĞŽŶ͘
/ŶĐŽŶŶĞĐƚŝŽŶǁŝƚŚŽƵƌĂƵĚŝƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ŽƵƌƌĞƐƉŽŶƐŝďŝůŝƚLJŝƐƚŽƌĞĂĚƚŚĞŽƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶĂŶĚ͕ŝŶĚŽŝŶŐ
ƐŽ͕ĐŽŶƐŝĚĞƌǁŚĞƚŚĞƌƚŚĞŽƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶŝƐŵĂƚĞƌŝĂůůLJŝŶĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽƌŽƵƌŬŶŽǁůĞĚŐĞ
ŽďƚĂŝŶĞĚŝŶƚŚĞĂƵĚŝƚ͕ŽƌŽƚŚĞƌǁŝƐĞĂƉƉĞĂƌƐƚŽďĞŵĂƚĞƌŝĂůůLJŵŝƐƐƚĂƚĞĚ͘/Ĩ͕ďĂƐĞĚŽŶƚŚĞǁŽƌŬǁĞŚĂǀĞƉĞƌĨŽƌŵĞĚ͕
ǁĞĐŽŶĐůƵĚĞƚŚĂƚƚŚĞƌĞŝƐĂŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚŽĨƚŚŝƐŽƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶ͕ǁĞĂƌĞƌĞƋƵŝƌĞĚƚŽƌĞƉŽƌƚƚŚĂƚĨĂĐƚ͘
tĞŚĂǀĞŶŽƚŚŝŶŐƚŽƌĞƉŽƌƚŝŶƚŚŝƐƌĞŐĂƌĚ͘
ZĞƐƉŽŶƐŝďŝůŝƚŝĞƐŽĨƚŚĞŝƌĞĐƚŽƌƐĨŽƌƚŚĞ&ŝŶĂŶĐŝĂůZĞƉŽƌƚ
dŚĞĚŝƌĞĐƚŽƌƐŽĨƚŚĞŽŵƉĂŶLJĂƌĞƌĞƐƉŽŶƐŝďůĞ͗
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&ŽƌƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭ͕ŝŶĐůƵĚŝŶŐŐŝǀŝŶŐĂ
ƚƌƵĞĂŶĚĨĂŝƌǀŝĞǁŽĨƚŚĞĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶĂŶĚƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞ'ƌŽƵƉŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƵƐƚƌĂůŝĂŶ
ĐĐŽƵŶƚŝŶŐ^ƚĂŶĚĂƌĚƐ͖ĂŶĚ
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&ŽƌƐƵĐŚŝŶƚĞƌŶĂůĐŽŶƚƌŽůĂƐƚŚĞĚŝƌĞĐƚŽƌƐĚĞƚĞƌŵŝŶĞŝƐŶĞĐĞƐƐĂƌLJƚŽĞŶĂďůĞƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨƚŚĞĨŝŶĂŶĐŝĂů
ƌĞƉŽƌƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭ͕ŝŶĐůƵĚŝŶŐŐŝǀŝŶŐĂƚƌƵĞĂŶĚĨĂŝƌǀŝĞǁŽĨƚŚĞĨŝŶĂŶĐŝĂů
ƉŽƐŝƚŝŽŶĂŶĚƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞ'ƌŽƵƉ͕ĂŶĚŝƐĨƌĞĞĨƌŽŵŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚ͕ǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚŽƌ
ĞƌƌŽƌ͘
/ŶƉƌĞƉĂƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ƚŚĞĚŝƌĞĐƚŽƌƐĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌĂƐƐĞƐƐŝŶŐƚŚĞĂďŝůŝƚLJŽĨƚŚĞ'ƌŽƵƉƚŽĐŽŶƚŝŶƵĞĂƐ
ĂŐŽŝŶŐĐŽŶĐĞƌŶ͕ĚŝƐĐůŽƐŝŶŐ͕ĂƐĂƉƉůŝĐĂďůĞ͕ŵĂƚƚĞƌƐƌĞůĂƚĞĚƚŽŐŽŝŶŐĐŽŶĐĞƌŶĂŶĚƵƐŝŶŐƚŚĞŐŽŝŶŐĐŽŶĐĞƌŶďĂƐŝƐŽĨ
ĂĐĐŽƵŶƚŝŶŐƵŶůĞƐƐƚŚĞĚŝƌĞĐƚŽƌƐĞŝƚŚĞƌŝŶƚĞŶĚƚŽůŝƋƵŝĚĂƚĞƚŚĞ'ƌŽƵƉŽƌƚŽĐĞĂƐĞŽƉĞƌĂƚŝŽŶƐ͕ŽƌŚĂƐŶŽƌĞĂůŝƐƚŝĐ
ĂůƚĞƌŶĂƚŝǀĞďƵƚƚŽĚŽƐŽ͘
Auditor’s Responsibilities for the Audit of the Financial Report
KƵƌŽďũĞĐƚŝǀĞƐĂƌĞƚŽŽďƚĂŝŶƌĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞĂďŽƵƚǁŚĞƚŚĞƌƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚĂƐĂǁŚŽůĞŝƐĨƌĞĞĨƌŽŵ
ŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚ͕ǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚŽƌĞƌƌŽƌ͕and to issue an auditor’s report that includes our opinion.
ZĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞŝƐĂŚŝŐŚůĞǀĞůŽĨĂƐƐƵƌĂŶĐĞ͕ďƵƚŝƐŶŽƚĂŐƵĂƌĂŶƚĞĞƚŚĂƚĂŶĂƵĚŝƚĐŽŶĚƵĐƚĞĚŝŶĂĐĐŽƌĚĂŶĐĞ
ǁŝƚŚƚŚĞƵƐƚƌĂůŝĂŶƵĚŝƚŝŶŐ^ƚĂŶĚĂƌĚƐǁŝůůĂůǁĂLJƐĚĞƚĞĐƚĂŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚǁŚĞŶŝƚĞdžŝƐƚƐ͘DŝƐƐƚĂƚĞŵĞŶƚƐ
ĐĂŶĂƌŝƐĞĨƌŽŵĨƌĂƵĚŽƌĞƌƌŽƌĂŶĚĂƌĞĐŽŶƐŝĚĞƌĞĚŵĂƚĞƌŝĂůŝĨ͕ŝŶĚŝǀŝĚƵĂůůLJŽƌŝŶƚŚĞĂŐŐƌĞŐĂƚĞ͕ƚŚĞLJĐŽƵůĚƌĞĂƐŽŶĂďůLJ
ďĞĞdžƉĞĐƚĞĚƚŽŝŶĨůƵĞŶĐĞƚŚĞĞĐŽŶŽŵŝĐĚĞĐŝƐŝŽŶƐŽĨƵƐĞƌƐƚĂŬĞŶŽŶƚŚĞďĂƐŝƐŽĨƚŚŝƐĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͘
ƐƉĂƌƚŽĨĂŶĂƵĚŝƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƵƐƚƌĂůŝĂŶƵĚŝƚŝŶŐ^ƚĂŶĚĂƌĚƐ͕ǁĞĞdžĞƌĐŝƐĞƉƌŽĨĞƐƐŝŽŶĂůũƵĚŐĞŵĞŶƚĂŶĚ
ŵĂŝŶƚĂŝŶƉƌŽĨĞƐƐŝŽŶĂůƐĐĞƉƚŝĐŝƐŵƚŚƌŽƵŐŚŽƵƚƚŚĞĂƵĚŝƚ͘tĞĂůƐŽ͗
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/ĚĞŶƚŝĨLJĂŶĚĂƐƐĞƐƐƚŚĞƌŝƐŬƐŽĨŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚŽƌĞƌƌŽƌ͕
ĚĞƐŝŐŶĂŶĚƉĞƌĨŽƌŵĂƵĚŝƚƉƌŽĐĞĚƵƌĞƐƌĞƐƉŽŶƐŝǀĞƚŽƚŚŽƐĞƌŝƐŬƐ͕ĂŶĚŽďƚĂŝŶĂƵĚŝƚĞǀŝĚĞŶĐĞƚŚĂƚŝƐƐƵĨĨŝĐŝĞŶƚ
ĂŶĚĂƉƉƌŽƉƌŝĂƚĞƚŽƉƌŽǀŝĚĞĂďĂƐŝƐĨŽƌŽƵƌŽƉŝŶŝŽŶ͘dŚĞƌŝƐŬŽĨŶŽƚĚĞƚĞĐƚŝŶŐĂŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚƌĞƐƵůƚŝŶŐ
ĨƌŽŵĨƌĂƵĚŝƐŚŝŐŚĞƌƚŚĂŶĨŽƌŽŶĞƌĞƐƵůƚŝŶŐĨƌŽŵĞƌƌŽƌ͕ĂƐĨƌĂƵĚŵĂLJŝŶǀŽůǀĞĐŽůůƵƐŝŽŶ͕ĨŽƌŐĞƌLJ͕ŝŶƚĞŶƚŝŽŶĂů
ŽŵŝƐƐŝŽŶƐ͕ŵŝƐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ͕ŽƌƚŚĞŽǀĞƌƌŝĚĞŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽů͘
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KďƚĂŝŶĂŶƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽůƌĞůĞǀĂŶƚƚŽƚŚĞĂƵĚŝƚŝŶŽƌĚĞƌƚŽĚĞƐŝŐŶĂƵĚŝƚƉƌŽĐĞĚƵƌĞƐƚŚĂƚĂƌĞ
ĂƉƉƌŽƉƌŝĂƚĞŝŶƚŚĞĐŝƌĐƵŵƐƚĂŶĐĞƐ͕ďƵƚŶŽƚĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨĞdžƉƌĞƐƐŝŶŐĂŶŽƉŝŶŝŽŶŽŶƚŚĞĞĨĨĞĐƚŝǀĞŶĞƐƐŽĨ
ƚŚĞGroup’sŝŶƚĞƌŶĂůĐŽŶƚƌŽů͘
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ǀĂůƵĂƚĞƚŚĞĂƉƉƌŽƉƌŝĂƚĞŶĞƐƐŽĨĂĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐƵƐĞĚĂŶĚƚŚĞƌĞĂƐŽŶĂďůĞŶĞƐƐŽĨĂĐĐŽƵŶƚŝŶŐĞƐƚŝŵĂƚĞƐĂŶĚ
ƌĞůĂƚĞĚĚŝƐĐůŽƐƵƌĞƐŵĂĚĞďLJƚŚĞĚŝƌĞĐƚŽƌƐ͘
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Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on
ƚŚĞĂƵĚŝƚĞǀŝĚĞŶĐĞŽďƚĂŝŶĞĚ͕ǁŚĞƚŚĞƌĂŵĂƚĞƌŝĂůƵŶĐĞƌƚĂŝŶƚLJĞdžŝƐƚƐƌĞůĂƚĞĚƚŽĞǀĞŶƚƐŽƌĐŽŶĚŝƚŝŽŶƐƚŚĂƚŵĂLJ
ĐĂƐƚƐŝŐŶŝĨŝĐĂŶƚĚŽƵďƚŽŶƚŚĞGroup’sĂďŝůŝƚLJƚŽĐŽŶƚŝŶƵĞĂƐĂŐŽŝŶŐĐŽŶĐĞƌŶ͘/ĨǁĞĐŽŶĐůƵĚĞƚŚĂƚĂŵĂƚĞƌŝĂů
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
ĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽƌ͕ŝĨƐƵĐŚĚŝƐĐůŽƐƵƌĞƐĂƌĞŝŶĂĚĞƋƵĂƚĞ͕ƚŽŵŽĚŝĨLJŽƵƌŽƉŝŶŝŽŶ͘KƵƌĐŽŶĐůƵƐŝŽŶƐĂƌĞďĂƐĞĚŽŶ
| INDEPENDENT AUDITOR'S REPORT
<ĞLJƵĚŝƚDĂƚƚĞƌ
,Žǁ ƚŚĞ ƐĐŽƉĞ ŽĨ ŽƵƌ ĂƵĚŝƚ ƌĞƐƉŽŶĚĞĚ ƚŽ ƚŚĞ <ĞLJ ƵĚŝƚ
DĂƚƚĞƌ
/ŵƉĂŝƌŵĞŶƚŽĨůŽĂŶƐĂŶĚĂĚǀĂŶĐĞƐ
ƐĂƚϯϬ:ƵŶĞϮϬϮϰ͕ƚŚĞ'ƌŽƵƉŚĂƐ ƌĞĐŽŐŶŝƐĞĚ
ƉƌŽǀŝƐŝŽŶƐĂŵŽƵŶƚŝŶŐƚŽΨϱϬ͘ϬŵĨŽƌŝŵƉĂŝƌŵĞŶƚ
ůŽƐƐĞƐŽŶůŽĂŶƐĂŶĚĂĚǀĂŶĐĞƐŚĞůĚĂƚĂŵŽƌƚŝƐĞĚ
ĐŽƐƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞ džƉĞĐƚĞĚƌĞĚŝƚ>ŽƐƐ
; >ͿĂƉƉƌŽĂĐŚƌĞƋƵŝƌĞĚƵŶĚĞƌ^ϵ&ŝŶĂŶĐŝĂů
/ŶƐƚƌƵŵĞŶƚƐĂƐĚŝƐĐůŽƐĞĚŝŶEŽƚĞƐϲ͕ϮϮĂŶĚϮϯ͘
>ŽĂŶƐĂŶĚĂĚǀĂŶĐĞƐƐƵďũĞĐƚƚŽƉƌŽǀŝƐŝŽŶŝŶŐƵƐŝŶŐ
ƚŚĞ > ŵŽĚĞů ŝŶĐůƵĚĞ ƚŚĞ ƌĞƐŝĚĞŶƚŝĂů ůĞŶĚŝŶŐ
ƉŽƌƚĨŽůŝŽ͕ ĂƐƐĞƚ ĨŝŶĂŶĐĞ ƉŽƌƚĨŽůŝŽ ĂŶĚ ůŽĂŶƐ
ĂƉƉƌŽǀĞĚďƵƚŶŽƚLJĞƚĂĚǀĂŶĐĞĚ͘
^ŝŐŶŝĨŝĐĂŶƚ
ŵĂŶĂŐĞŵĞŶƚ
ũƵĚŐĞŵĞŶƚ
ǁĂƐ
ŶĞĐĞƐƐĂƌLJŝŶĚĞƚĞƌŵŝŶŝŶŐĞdžƉĞĐƚĞĚĐƌĞĚŝƚůŽƐƐĞƐ͕
ŝŶĐůƵĚŝŶŐ͗
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dŚĞĂƉƉůŝĐĂƚŝŽŶŽĨƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞ
ƵƐƚƌĂůŝĂŶ
ĐĐŽƵŶƚŝŶŐ
^ƚĂŶĚĂƌĚƐ
ĂƐ
reflected in the Group’s ECL model
ƉĂƌƚŝĐƵůĂƌůLJŝŶůŝŐŚƚŽĨƚŚĞĐƵƌƌĞŶƚĞĐŽŶŽŵŝĐ
ĞŶǀŝƌŽŶŵĞŶƚĂŶĚƚŚĞŝŵƉĂĐƚƐŽĨŝŶĐƌĞĂƐĞĚ
ŝŶƚĞƌĞƐƚƌĂƚĞƐŽŶƚŚĞǀĂƌŝĂďůĞůŽĂŶƉŽƌƚĨŽůŝŽ͖
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dŚĞ ŝĚĞŶƚŝĨŝĐĂƚŝŽŶ ŽĨ ĞdžƉŽƐƵƌĞƐ ǁŝƚŚ Ă
ƐŝŐŶŝĨŝĐĂŶƚ ŵŽǀĞŵĞŶƚ ŝŶ ĐƌĞĚŝƚ ƋƵĂůŝƚLJ ƚŽ
ĚĞƚĞƌŵŝŶĞǁŚĞƚŚĞƌĂϭϮͲŵŽŶƚŚŽƌůŝĨĞƚŝŵĞ
>ƐŚŽƵůĚďĞƌĞĐŽŐŶŝƐĞĚ͖ĂŶĚ
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ƐƐƵŵƉƚŝŽŶƐƵƐĞĚŝŶƚŚĞ >ŵŽĚĞůƐƵĐŚĂƐ
ƚŚĞĨŝŶĂŶĐŝĂůĐŽŶĚŝƚŝŽŶŽĨƚŚĞĐŽƵŶƚĞƌƉĂƌƚLJ͕
ƌĞƉĂLJŵĞŶƚ ĐĂƉĂĐŝƚLJ ĂŶĚ ĨŽƌǁĂƌĚͲůŽŽŬŝŶŐ
ŵĂĐƌŽĞĐŽŶŽŵŝĐ ĨĂĐƚŽƌƐ ĂƐ ĚŝƐĐůŽƐĞĚ ŝŶ
EŽƚĞƐϲ͕ϮϮĂŶĚϮϯ͘
KƵƌĂƵĚŝƚƉƌŽĐĞĚƵƌĞƐƉĞƌĨŽƌŵĞĚŝŶĐŽŶũƵŶĐƚŝŽŶǁŝƚŚŽƵƌ
ƐƉĞĐŝĂůŝƐƚƐŝŶĐůƵĚĞĚ͕ďƵƚǁĞƌĞŶŽƚůŝŵŝƚĞĚƚŽ͗
dĞƐƚŝŶŐƚŚĞĚĞƐŝŐŶĂŶĚŝŵƉůĞŵĞŶƚĂƚŝŽŶŽĨƌĞůĞǀĂŶƚĐŽŶƚƌŽůƐ
ŽǀĞƌƚŚĞŝŵƉĂŝƌŵĞŶƚƉƌŽǀŝƐŝŽŶŝŶĐůƵĚŝŶŐ͗
•
dŚĞĂĐĐƵƌĂĐLJŽĨĚĂƚĂŝŶƉƵƚƐƵƐĞĚŝŶƚŚĞ >ĐĂůĐƵůĂƚŝŽŶ͖
•
dŚĞƐĞůĞĐƚŝŽŶĂŶĚĂƉƉůŝĐĂƚŝŽŶŽĨĂƐƐƵŵƉƚŝŽŶƐƵƐĞĚŝŶ
ƚŚĞŵŽĚĞů͖
•
dŚĞ ŽŶŐŽŝŶŐ ŵŽŶŝƚŽƌŝŶŐ ĂŶĚ ŝĚĞŶƚŝĨŝĐĂƚŝŽŶ ŽĨ ůŽĂŶƐ
ĚŝƐƉůĂLJŝŶŐŝŶĚŝĐĂƚŽƌƐŽĨŝŵƉĂŝƌŵĞŶƚĂŶĚǁŚĞƚŚĞƌƚŚĞLJ
ĂƌĞŵŝŐƌĂƚŝŶŐŽŶĂƚŝŵĞůLJďĂƐŝƐƚŽĂƉƉƌŽƉƌŝĂƚĞƐƚĂŐĞƐŝŶ
ĂĐĐŽƌĚĂŶĐĞǁŝƚŚ^ϵ͖ĂŶĚ
•
dŚĞ ƌĞǀŝĞǁ ĂŶĚ ŐŽǀĞƌŶĂŶĐĞ ƐƵƌƌŽƵŶĚŝŶŐ ƚŚĞ >
ŵŽĚĞů͕ŝƚƐĂƐƐƵŵƉƚŝŽŶƐĂŶĚƚŚĞĂƉƉƌŽƉƌŝĂƚĞŶĞƐƐŽĨƚŚĞ
ƌĞƐƵůƚĂŶƚ >ƚŽƚŚĞůŽĂŶƉŽƌƚĨŽůŝŽƐ͘
ƐƐĞƐƐŝŶŐŝŵƉĂŝƌŵĞŶƚŵŽĚĞůĂĚĞƋƵĂĐLJ
tĞ ĂƐƐĞƐƐĞĚ ƚŚĞ ĂĚĞƋƵĂĐLJ ĂŶĚ ĐŽŵƉůĞƚĞŶĞƐƐ ŽĨ
management’s internally developed model in determining
ƚŚĞ ŝŵƉĂŝƌŵĞŶƚ ůŽƐƐ ƉƌŽǀŝƐŝŽŶ͘ KƵƌ ƉƌŽĐĞĚƵƌĞƐ ŝŶĐůƵĚĞĚ͕
ďƵƚǁĞƌĞŶŽƚůŝŵŝƚĞĚƚŽ͗
•
Assessing whether management’s model adequately
ĂĚĚƌĞƐƐĞƐ ƚŚĞ ƌĞƋƵŝƌĞŵĞŶƚƐ ŽĨ ƚŚĞ ƵƐƚƌĂůŝĂŶ
ĐĐŽƵŶƚŝŶŐ^ƚĂŶĚĂƌĚƐ͖
•
Evaluating management’s assessment of the impact of
ƚŚĞ ĐŚĂŶŐŝŶŐ ĞĐŽŶŽŵŝĐ ĞŶǀŝƌŽŶŵĞŶƚ ŽŶ ƚŚĞ ůŽĂŶ
ƉŽƌƚĨŽůŝŽĂŶĚĂƐĂƌĞƐƵůƚ͕ƚŚĞ >͖
•
ƐƐĞƐƐŝŶŐĂƐƐƵŵƉƚŝŽŶƐĚƌŝǀŝŶŐWƌŽďĂďŝůŝƚŝĞƐŽĨĞĨĂƵůƚ
;WͿ͕>ŽƐƐ'ŝǀĞŶĞĨĂƵůƚ;>'ͿĂŶĚ džƉŽƐƵƌĞĂƚĞĨĂƵůƚ
; Ϳ͖
•
ƐƐĞƐƐŝŶŐ ŵĂŶĂŐĞŵĞŶƚ ŽǀĞƌůĂLJƐ ƚŽ ƚŚĞ ŵŽĚĞůůĞĚ
ĐŽůůĞĐƚŝǀĞ ƉƌŽǀŝƐŝŽŶ ďLJ ƌĞĐĂůĐƵůĂƚŝŶŐ ƚŚĞ ĐŽǀĞƌĂŐĞ
ƉƌŽǀŝĚĞĚ ďLJ ƚŚĞ ĐŽůůĞĐƚŝǀĞ ŝŵƉĂŝƌŵĞŶƚ ƉƌŽǀŝƐŝŽŶ
;ŝŶĐůƵĚŝŶŐ ŽǀĞƌůĂLJƐͿ ƚŽ ƚŚĞ ůŽĂŶ Ŭ͕ ƚĂŬŝŶŐ ŝŶƚŽ
ĂĐĐŽƵŶƚ ƌĞĐĞŶƚ ŚŝƐƚŽƌLJ͕ ƉĞƌĨŽƌŵĂŶĐĞ ĂŶĚ Ă ƌĂŶŐĞ ŽĨ
ĞĐŽŶŽŵŝĐ ĨĂĐƚŽƌƐ ƚŚĂƚ ĐŽƵůĚ ŝŵƉĂĐƚ ƚŚĞ ƌĞůĞǀĂŶƚ
ƉŽƌƚĨŽůŝŽƐ͖ĂŶĚ
•
ƐƐĞƐƐŝŶŐƚŚĞĐŽŵƉůĞƚĞŶĞƐƐŽĨƚŚĞĐƌĞĚŝƚůŽƐƐƉƌŽǀŝƐŝŽŶ͘
tĞ ĂůƐŽ ĂƐƐĞƐƐĞĚ ĂƉƉƌŽƉƌŝĂƚĞŶĞƐƐ ŽĨ ƚŚĞ ĚŝƐĐůŽƐƵƌĞƐ ŝŶ
EŽƚĞƐϲ͕ϮϮĂŶĚϮϯƚŽƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ
KƚŚĞƌ/ŶĨŽƌŵĂƚŝŽŶ
dŚĞĚŝƌĞĐƚŽƌƐĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞŽƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶ͘dŚĞŽƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶĐŽŵƉƌŝƐĞƐƚŚĞŝŶĨŽƌŵĂƚŝŽŶŝŶĐůƵĚĞĚ
ŝŶƚŚĞGroup’sĂŶŶƵĂůƌĞƉŽƌƚĨŽƌƚŚĞLJĞĂƌĞŶĚĞĚϯϬ:ƵŶĞϮϬϮϰďƵƚĚŽĞƐŶŽƚŝŶĐůƵĚĞƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚĂŶĚŽƵƌ
auditor’s report thereon.
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 135
134 |
| INDEPENDENT AUDITOR'S REPORT
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
ĐĂƵƐĞƚŚĞGroup’sƚŽĐĞĂƐĞƚŽĐŽŶƚŝŶƵĞĂƐĂŐŽŝŶŐĐŽŶĐĞƌŶ͘
•
ǀĂůƵĂƚĞƚŚĞŽǀĞƌĂůůƉƌĞƐĞŶƚĂƚŝŽŶ͕ƐƚƌƵĐƚƵƌĞĂŶĚĐŽŶƚĞŶƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͕ŝŶĐůƵĚŝŶŐƚŚĞĚŝƐĐůŽƐƵƌĞƐ͕ĂŶĚ
ǁŚĞƚŚĞƌƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚƌĞƉƌĞƐĞŶƚƐƚŚĞƵŶĚĞƌůLJŝŶŐƚƌĂŶƐĂĐƚŝŽŶƐĂŶĚĞǀĞŶƚƐŝŶĂŵĂŶŶĞƌƚŚĂƚĂĐŚŝĞǀĞƐĨĂŝƌ
ƉƌĞƐĞŶƚĂƚŝŽŶ͘
•
KďƚĂŝŶƐƵĨĨŝĐŝĞŶƚĂƉƉƌŽƉƌŝĂƚĞĂƵĚŝƚĞǀŝĚĞŶĐĞƌĞŐĂƌĚŝŶŐƚŚĞĨŝŶĂŶĐŝĂůŝŶĨŽƌŵĂƚŝŽŶŽĨƚŚĞĞŶƚŝƚŝĞƐŽƌďƵƐŝŶĞƐƐ
ĂĐƚŝǀŝƚŝĞƐǁŝƚŚŝŶƚŚĞ'ƌŽƵƉƚŽĞdžƉƌĞƐƐĂŶŽƉŝŶŝŽŶŽŶƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚ͘tĞĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞĚŝƌĞĐƚŝŽŶ͕
ƐƵƉĞƌǀŝƐŝŽŶĂŶĚƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞ'ƌŽƵƉ’s audit. We remain solely responsible for our audit opinion͘
tĞĐŽŵŵƵŶŝĐĂƚĞǁŝƚŚƚŚĞĚŝƌĞĐƚŽƌƐƌĞŐĂƌĚŝŶŐ͕ĂŵŽŶŐŽƚŚĞƌŵĂƚƚĞƌƐ͕ƚŚĞƉůĂŶŶĞĚƐĐŽƉĞĂŶĚƚŝŵŝŶŐŽĨƚŚĞĂƵĚŝƚ
ĂŶĚƐŝŐŶŝĨŝĐĂŶƚĂƵĚŝƚĨŝŶĚŝŶŐƐ͕ŝŶĐůƵĚŝŶŐĂŶLJƐŝŐŶŝĨŝĐĂŶƚĚĞĨŝĐŝĞŶĐŝĞƐŝŶŝŶƚĞƌŶĂůĐŽŶƚƌŽůƚŚĂƚǁĞŝĚĞŶƚŝĨLJĚƵƌŝŶŐŽƵƌ
ĂƵĚŝƚ͘
tĞ ĂůƐŽ ƉƌŽǀŝĚĞ ƚŚĞ ĚŝƌĞĐƚŽƌƐ ǁŝƚŚ Ă ƐƚĂƚĞŵĞŶƚ ƚŚĂƚ ǁĞ ŚĂǀĞ ĐŽŵƉůŝĞĚ ǁŝƚŚ ƌĞůĞǀĂŶƚ ĞƚŚŝĐĂů ƌĞƋƵŝƌĞŵĞŶƚƐ
ƌĞŐĂƌĚŝŶŐŝŶĚĞƉĞŶĚĞŶĐĞ͕ĂŶĚƚŽĐŽŵŵƵŶŝĐĂƚĞǁŝƚŚƚŚĞŵĂůůƌĞůĂƚŝŽŶƐŚŝƉƐĂŶĚŽƚŚĞƌŵĂƚƚĞƌƐƚŚĂƚŵĂLJƌĞĂƐŽŶĂďůLJ
ďĞƚŚŽƵŐŚƚƚŽďĞĂƌŽŶŽƵƌŝŶĚĞƉĞŶĚĞŶĐĞ͕ĂŶĚǁŚĞƌĞĂƉƉůŝĐĂďůĞ͕ĂĐƚŝŽŶƐƚĂŬĞŶƚŽĞůŝŵŝŶĂƚĞƚŚƌĞĂƚƐŽƌƐĂĨĞŐƵĂƌĚƐ
ĂƉƉůŝĞĚ͘
&ƌŽŵƚŚĞŵĂƚƚĞƌƐĐŽŵŵƵŶŝĐĂƚĞĚǁŝƚŚƚŚĞĚŝƌĞĐƚŽƌƐ͕ǁĞĚĞƚĞƌŵŝŶĞƚŚŽƐĞŵĂƚƚĞƌƐƚŚĂƚǁĞƌĞŽĨŵŽƐƚƐŝŐŶŝĨŝĐĂŶĐĞ
ŝŶƚŚĞĂƵĚŝƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŽĨƚŚĞĐƵƌƌĞŶƚƉĞƌŝŽĚĂŶĚĂƌĞƚŚĞƌĞĨŽƌĞƚŚĞŬĞLJĂƵĚŝƚŵĂƚƚĞƌƐ͘tĞĚĞƐĐƌŝďĞ
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
ǁŚĞŶ͕ŝŶĞdžƚƌĞŵĞůLJƌĂƌĞĐŝƌĐƵŵƐƚĂŶĐĞƐ͕ǁĞĚĞƚĞƌŵŝŶĞƚŚĂƚĂŵĂƚƚĞƌƐŚŽƵůĚŶŽƚďĞĐŽŵŵƵŶŝĐĂƚĞĚŝŶŽƵƌƌĞƉŽƌƚ
ďĞĐĂƵƐĞƚŚĞĂĚǀĞƌƐĞĐŽŶƐĞƋƵĞŶĐĞƐŽĨĚŽŝŶŐƐŽǁŽƵůĚƌĞĂƐŽŶĂďůLJďĞĞdžƉĞĐƚĞĚƚŽŽƵƚǁĞŝŐŚƚŚĞƉƵďůŝĐŝŶƚĞƌĞƐƚ
ďĞŶĞĨŝƚƐŽĨƐƵĐŚĐŽŵŵƵŶŝĐĂƚŝŽŶ͘
ZĞƉŽƌƚŽŶƚŚĞZĞŵƵŶĞƌĂƚŝŽŶZĞƉŽƌƚ
KƉŝŶŝŽŶŽŶƚŚĞZĞŵƵŶĞƌĂƚŝŽŶZĞƉŽƌƚ
tĞŚĂǀĞĂƵĚŝƚĞĚƚŚĞZĞŵƵŶĞƌĂƚŝŽŶZĞƉŽƌƚŝŶĐůƵĚĞĚŽŶƉĂŐĞƐϭϯƚŽϯϬŽĨthe Directors’ Report for the year ended
ϯϬ:ƵŶĞϮϬϮϰ͘
/ŶŽƵƌŽƉŝŶŝŽŶ͕ƚŚĞZĞŵƵŶĞƌĂƚŝŽŶZĞƉŽƌƚŽĨZĞƐŝŵĂĐ'ƌŽƵƉ>ŝŵŝƚĞĚ͕ĨŽƌƚŚĞLJĞĂƌĞŶĚĞĚϯϬ:ƵŶĞϮϬϮϰĐŽŵƉůŝĞƐ
ǁŝƚŚƐĞĐƚŝŽŶϯϬϬŽĨƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭ͘
ZĞƐƉŽŶƐŝďŝůŝƚŝĞƐ
dŚĞĚŝƌĞĐƚŽƌƐŽĨƚŚĞŽŵƉĂŶLJĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞƉƌĞƉĂƌĂƚŝŽŶĂŶĚƉƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞZĞŵƵŶĞƌĂƚŝŽŶZĞƉŽƌƚ
ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƐĞĐƚŝŽŶϯϬϬŽĨƚŚĞŽƌƉŽƌĂƚŝŽŶƐĐƚϮϬϬϭ͘KƵƌƌĞƐƉŽŶƐŝďŝůŝƚLJŝƐƚŽĞdžƉƌĞƐƐĂŶŽƉŝŶŝŽŶŽŶƚŚĞ
ZĞŵƵŶĞƌĂƚŝŽŶZĞƉŽƌƚ͕ďĂƐĞĚŽŶŽƵƌĂƵĚŝƚĐŽŶĚƵĐƚĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƵƐƚƌĂůŝĂŶƵĚŝƚŝŶŐ^ƚĂŶĚĂƌĚƐ͘
>K/dd dKh, dK,Dd^h
,ĞĂƚŚĞƌĂŝƐƚĞƌ
WĂƌƚŶĞƌ
ŚĂƌƚĞƌĞĚĐĐŽƵŶƚĂŶƚƐ
^LJĚŶĞLJ͕ϮϴƵŐƵƐƚϮϬϮϰ
2024 ANNUAL REPORT
RESIMAC GROUP LTD
| 137
136 |
Shareholder
information.
Additional information required by the ASX and not disclosed elsewhere in this report is set out below. The
information is current as at 18 September 2024.
a) Number of holders of equity securities
Ordinary share capital: 400,000,000 paid ordinary shares are held by 2,653 individual shareholders.
b) Voting rights
All issued ordinary shares carry one vote for each member present at the meeting on a show of hands and on a poll
each member is entitled to one vote for every ordinary share held.
c) Distribution of members and their holdings
The number of equity securities by size of holding is set out below:
RANGE
Total holders
Units
% Units
1 to 1,000
633
320,167
0.08
1,001 to 5,000
876
2,331,503
0.58
5,001 to 10,000
334
2,612,378
0.65
10,001 to 100,000
679
21,957,201
5.49
100,001 and over
131
372,778,751
93.20
TOTAL
2,653
400,000,000
100.00
UNMARKETABLE PARCELS
Minimum parcel size
Holders
Units
Minimum $500.00 parcel at $0.8700 per unit
575
391
109,560
d) Substantial shareholders
The names of the substantial shareholders of the Company and the number of equity securities in which they have
a relevant interest as disclosed in substantial shareholding notices given to the Company are set out below:
SHAREHOLDER
No. of shares
%
Somers Limited, ICM Limited, UIL Limited, Permanent Investments Limited,
Somers Isles Private Trustee Company Limited, and each other entity
controlled by Duncan Saville
254,586,353
63.56
e) Twenty largest shareholders
The 20 largest shareholders of ordinary shares on the Company's register at 18 September 2024 were:
SHAREHOLDER
No. of shares
%
JP Morgan Nominees Australia Pty Limited
190,389,658
47.60
HSBC Custody Nominees (Australia) Limited
80,975,174
20.24
Redbrook Nominees Pty Ltd
15,793,019
3.95
Motrose Pty Ltd
14,500,000
3.63
Warren John McLeland
11,920,138
2.98
National Nominees Limited
9,657,769
2.41
Hartley Phillips Securities Pty Ltd (Hartley Phillips Inv Tst A/C)
5,031,373
1.26
Westpac Banking Corporation
2,493,130
0.62
Moat Investments Pty Ltd (Moat Investment A/C)
2,200,000
0.55
Scanlon Capital Investments Pty Ltd
1,791,131
0.45
Acres Holdings Pty Ltd
1,496,881
0.37
Wanna Quickie Pty Ltd
1,281,022
0.32
High Pass Holdings Pty Ltd (High Pass Hldgs P/L Sup A/C)
1,191,687
0.30
Mr Scott Bruce Charles McWilliam
1,151,468
0.29
Garmaral Pty Ltd
1,100,000
0.28
Esselmont Pty Ltd (The Esselmont A/C)
989,749
0.25
TICO Pty Ltd
903,960
0.23
Ralph Lauren 57 Pty Ltd (John James No 2 A/C)
899,922
0.22
TDF Properties Pty Ltd (TDF Property A/C)
825,441
0.21
Citicorp Nominees Pty Limited
808,518
0.20
TOTAL
345,400,040
86.36
2024 ANNUAL REPORT
RESIMAC GROUP LTD
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138 |
Managing your
shareholding.
The Company's share registry is managed by
Computershare Investor Services Pty Limited
(Computershare).
The Investor Centre website is the fastest, easiest
and most convenient way to view and manage your
shareholding. Investor Centre enables a shareholder
to:
View the Company share price;
Change your banking details;
Change your address (for non-CHESS sponsored
holdings);
Update your dividend instruction;
Update your Tax File Number (TFN), Australian
Business Number (ABN) or exemption;
Select your email and communication
preferences; and
View your transaction history.
When communicating with Computershare or
accessing your holding online you will need your
Securityholder Reference Number (SRN) or Holder
Identification Number (HIN) as shown on your Issuer
Sponsored / CHESS statements.
You can also contact Computershare by:
Address
6 Hope Street, Ermington NSW 2115
P. 1300 850 505
E. web.queries@computershare.com.au
W. investorcentre.com.au
Tax File Number
While it is not compulsory to provide a Tax File
Number ('TFN'), if shareholders have not provided a
TFN and Resimac pays an unfranked or partly franked
dividend, the Company will be required to deduct tax
from the unfranked portion of the dividend at the top
marginal rate plus the Medicare Levy.
Registered office and Corporate office
Level 9, 45 Clarence Street, Sydney NSW 2000
P. +61 2 9248 0300
E. info@resimac.com.au
W. resimac.com.au
ABN 55 095 034 003
Australian Credit Licence 247829
ASX:RMC
Share registry
Computershare Investor Services Pty Limited
Non-Executive Directors
Warren McLeland, Chairman
Susan Hansen
Duncan Saville
Wayne Spanner
Caroline Waldron
Company Secretary
Peter Fitzpatrick
To view the 2024 Annual Report, Shareholder and Company information, new announcements, background
information on Resimac Group businesses and historical information, visit the Resimac website at resimac.com.au
Corporate
information.
2024 ANNUAL REPORT
Information on Resimac Group
Resimac Group website
Up to date information on the Company can be obtained from the Company's website: resimac.com.au
Securities exchange listing
The Company's shares are listed on the Australian Securities Exchange (ASX) and the Home Exchange is Sydney.
Ordinary shares are traded under the code, ASX:RMC.
Share prices can be accessed from major Australian newspapers, the Resimac Group website or at: asx.com.au
| 139
RESIMAC GROUP LTD
2024 ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2024
Level 9, 45 Clarence Street, Sydney NSW 2000 Australia
ABN 55 095 034 003 | Australian Credit Licence 247829 | ASX:RMC