The mngt has no excuse regarding the cock-up on the impact of the interest rates. The CFO was asked specifically back in Feb in the interims webinar about the impact of rising rates. The response was along the lines of it being immaterial because the cost of debt falls the more drawn down from the facility. The loan book has grown inline with those expectations back in Feb. We're now told there's a delay between rate rises & passing them onto customers that has blown the NIM. The CFO should have known the impact back in Feb on the rate increases made up to that date, he clearly didn't.
RBA rate in Jun-22 was 0.85% RBA rate in Feb-23 was 3.35% +2.5% at tme of webinar from start of the financial year. The RBA rate in Jun-23 was 4.1% +0.75% increase after webinar. If the CFO really understood the impact of the 2.5% increase to date at the time of the webinar he clearly wouldn't have made the comments he did.
SVR Price at posting:
$1.26 Sentiment: Hold Disclosure: Held
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