Hummgroup (ASX: HUM) released its 3Q25 update, revealing a 10% increase in assets under management, reaching $5.3 billion, with commercial assets at $3.2 billion and consumer receivables at $2.1 billion. Overall volume from continuing products edged up by 0.8% to $897.3 million, despite a 2.8% dip in commercial volume due to a slowing SME market. Consumer volume saw a 3% increase, reaching $566.4 million.
The company maintained a stable net interest margin (NIM) of 5.5% and a net loss to average net receivables (ANR) ratio of 1.8%. The year-to-date cost-to-income ratio improved by 10% year-over-year to 53.5% as of March 31, 2025. Hummgroup also finalized the repayment of its Perpetual Note, freeing up $6.7 million in annualized cash flow.
Strategic investments into core products, diversification, cost management, and credit controls have supported growth amidst complex macroeconomic conditions. The consumer business exhibited solid performance, with receivables increasing by 10%. Hummgroup is preparing to launch its regulated hybrid loan product in Australia, leveraging its new hybrid loan platform following the introduction of new BNPL regulations.
An extensive review of consumer IT platforms led to modernization efforts, including a shift to cloud-hosted services and the implementation of a modern data platform. A re-platforming project to modernize credit card systems is also underway.
New Zealand Cards continue to strengthen, with a 2.3% volume increase to $198.0 million. The Irish business showed volume growth of 23% and NIM expansion of 220bps, maintaining losses at 1.6% and delivering a high ROE. Adjustments have been made in Canada to reduce losses, projecting $4 million in annualized savings.
Commercial performance remains strong, with a 10% growth in assets under management. Losses in the transport sectors in Victoria have increased, normalizing the expected trend towards 1.0% Net Loss to ANR more quickly.
Management is focused on controlling operating costs, with marketing spend reductions and FTE adjustments. The company is managing costs associated with an ASIC enquiry and the accelerated launch of the humm hybrid loan product.
Looking ahead, hummgroup will focus on expanding geographically and increasing market share. The board and management will continue to monitor operating costs and identify areas for improvement, while managing costs associated with compliance and product launches. Hummgroup remains positive about its strategic pathway and underlying business performance.
