Ann: 4Q24 Trading Update - Growth and strong loan performance, page-4

A great quarter and green shoots emerging as the company in a very disciplined way starts to grow that loan book again.

A real balancing act as any net increase in originations will result in a higher amount needed to be provisioned through P&L upfront, although the improvement in credit quality seems to have reduced the % being provisioned....although then you add actual net credit losses and the picture is hard so see....but nevertheless a fine balancing act

The other aspect is that with improved credit quality, their Net interest margin reduces (12% last year vs 10% this year), and therefore they have to manage their cost base with lower gross profits......I think they will only have ~4m in NPAT in 2H24, but that IMO is not reflective of what is happening under the hood (obviously all subject to them being honest with the credit quality of their book.....always hard even for auditors to fully monitor that).

With the securitisation in July and the below results, it should hopefully put them in good stead to do more term deals which will improve their options around growth and perhaps help on margins

The market seems to have taken no notice whatsoever of this trading update.......was fully expecting it to rally, but no major volume or buyers (as least ATM)