Humm Group (ASX: HUM) has posted a 119% increase in cash profit after tax to $29.8 million for the first half of the 2025 financial year (1H25). The company also reported a 555% rise in statutory net profit to $27.3 million, reflecting strong operational performance across its commercial and consumer finance segments.
Key financial highlights
- Cash profit (after tax): $29.8 million, up 119%
- Statutory net profit (after tax): $27.3 million, up 555%
- Cash earnings per share: 11.0 cents, up 124%
- Return on cash equity: 10.9%, up 122%
- Assets under management: $5.3 billion, up 14%
- Net interest margin: 5.5%, stable from the prior period
- Interim dividend: 1.25 cents per share, fully franked, up 67%
Commercial finance drives growth
Humm’s commercial finance division was the key driver of profitability, delivering a 35% increase in cash profit to $26.5 million. The business saw an 18% rise in assets under management, reaching $3.2 billion, while operating costs declined 15%. Net credit losses remained low at 0.8% of average net receivables.
Humm Group’s CEO, Stuart Grimshaw, attributed the performance to improved operating leverage, disciplined cost control, and a stable credit environment. “The commercial finance business has maintained strong momentum, increasing net operating income by 20% while reducing expenses,” he said.
Consumer finance rebounds with new product launches
The consumer finance segment returned to profitability with $3.3 million in cash profit, reversing a $6.1 million loss in 1H24. Total consumer receivables increased 10% to $2.1 billion, driven by 25% growth in point-of-sale payment plans.
The company is set to launch a new hybrid loan product in Q4FY25 to expand its offerings in Australia. “This product will open new channels and improve profitability, particularly for larger transactions,” Grimshaw noted.
Expansion in global markets
Humm is increasing investment in its UK, Ireland, and Canadian businesses, targeting long-term growth opportunities. The Ireland division reported $2.9 million in cash profit for the period. The company plans to re-enter the UK market and expand its offerings in Canada.
Strong balance sheet and dividend increase
Humm ended the period with $113.6 million in unrestricted cash and $1.4 billion in undrawn warehouse capacity. The company declared a fully franked interim dividend of 1.25 cents per share, representing an annualised shareholder return of 6.0%.
Outlook
Humm aims to continue improving profitability through cost efficiencies and technology investments. The company will provide a Q3 trading update in April/May 2025.
