RBA dovish pivot, rate 1-2 rate cuts expected first half of CY25, potential for 3 or 4 25bps cuts in CY25. This would save SVR millions in funding costs and could increase NPAT by a few million (annualised) based on a ~700m debt stack.
Strong job figures today (3.9% versus 4.2% expected) a spanner in the works to a Feb rate cut, but consensus is still for rate cuts around april/may 2025.
Flipside is that strong employment means that the bad debt outlook, particularity with SVR tightening underwriting standards and moving up the quality of loans, looks very benign.
I think FY25 guidance is conservative based on the solid employment situation plus cash on hand to grow, and with any luck at the half year that will be upgraded.
SVR Price at posting:
$1.54 Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)