Ann: Shareholders to vote on Humm Consumer Finance transaction, page-115

I think something to keep in mind is that the BNPL side is not profitable- it made a loss of nearly 10 million dollars in the first half due to increased marketing expenditure and the overseas push. This is likely to continue and probably increase over the next couple of years as the overseas expansion continues. This was before inflation and interest rates increased.

The profit is mainly coming from commercial and NZ cards. It’s why I am quite happy to be left with the very profitable commercial side and let LFS (plus our cards), help fund the cash that’s going to be needed to get the BNPL profitable in the long term. If we try to hang onto it all, I can easily see our dividend going/capital raise, especially If AA tries to buy some smaller entities. BNPL is a huge drain on cash because of the marketing, promotions, cash backs etc plus impairments.