NOVATTI GROUP LIMITED (ASX:NOV) - Novatti - The $1 party, page-1933 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by steve10: ↑

Appears have been profitable since September 2020 or about 15 months after obtaining the unrestricted banking licence.

They only mention the following.:

Profit and loss performance
– scaling to profitability
Judo recorded its first monthly net profit result in September 2020, which continued throughout the remainder of the year. The net profit result
before tax for FY21 saw a loss of $4.3 million (FY20: $50.8 million), including approximately $3 million in one-off items recognised at year end.

The underlying performance of the business has been strong, with cash profit closing at $9.4 million and net profit after tax closing at $28.8 million
(driven by tax assets recognised on prior year losses).

Total revenue increased to $89.8 million in FY21 (FY20: $28.3 million) with significant growth across interest income in line with loan book growth,
while interest expense increased in line with growth in the term deposit book and debt funding.

Judo’s net interest margin (NIM) has increased over consecutive months as lending margins continue to benefit from the superior customer
value proposition we offer. Our funding costs have reduced in line with market, and were also influenced by various funding initiatives undertaken
during the year, as well as utilisation of the RBA’s TFF.

Operating expenses grew by 51% to $84.1 million (FY20: $55.6 million) reflecting the significant investment made in people, core banking
technology assets and risk management infrastructure required to support our strategic business priorities. Total FTE employees increased in
FY21 to 320 (FY20: 197), as relationship bankers were onboarded to manage our growing SME customer base.

This growth saw us move to monthly profitability for the first time in September last year; something we are very proud of achieving within less than two years of receiving our banking licence.

In addition to our impressive growth, we have continued to strengthen our financial position with successful capital raisings completed in
December 2020 and June 2021. The recent capital raisings, including the issuance of our inaugural $50 million Tier 2 capital subordinated debt security, demonstrate the significant support and belief our investors have in us.

Alongside strong deposit growth and diversification of our funding sources, Judo was able to participate in the Term Funding Facility (TFF), which provided access to $2.9 billion in low-cost funding that has supported healthy liquidity levels and further reduced our cost of funds. Both capital and liquidity initiatives have proven to be particularly critical during times of uncertainty and have set us up well to maintain momentum into FY22.

Strong momentum in lending growth
FY21 saw a substantial growth in our lending activity, increasing our loan book by $1.7 billion to finish FY21 at $3.5 billion (FY20: $1.8 billion).
The momentum was supported by Judo’s expanding national footprint and greater investment in our relationship banking teams.

During FY21, third-party brokers continued to be an important source of originations for Judo (approximately 73%). We were also pleased with the
growth of lending opportunities originated through our direct offerings as Judo’s brand and reputation gain more prominence in the market.

Expand

seemed like their revenue is based on lending from third party broker. Thought Nov is focus on transactions, did Peter mentioned once we obtain the license we are going to follow what Judo is doing?
providing actual banking service seemed risky. As there were some small bank went broke/sold to the big four and some even hand back their license?
(im also exciting with the data and expecting Nov to became big but what are the possible risks here?)

No.	Vol.	Price($)
2	70018	5.0¢

No.

Vol.

Price($)

70018

5.0¢

Price($)	Vol.	No.
5.3¢	119435	2

Price($)

Vol.

No.

5.3¢

119435

No.	Vol.	Price($)
2	70018	0.050
1	50000	0.049
1	63829	0.047
4	138700	0.045
1	11627	0.043

No.

Vol.

Price($)

70018

0.050

50000

0.049

63829

0.047

138700

0.045

11627

0.043

Price($)	Vol.	No.
0.053	119435	2
0.054	6000	1
0.057	26500	1
0.060	146837	3
0.063	27000	1

Price($)

Vol.

No.

0.053

119435

0.054

6000

0.057

26500

0.060

146837

0.063

27000

(20min delay)
Last 5.0¢		Change -0.004(7.41%)		Mkt cap ! $17.78M

Open	High	Low	Value	Volume
5.3¢	5.3¢	5.0¢	$28.53K	551.1K

Novatti - The $1 party, page-1933

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