not sure you can look at in that way - higher credit loss will...

not sure you can look at in that way - higher credit loss will impact the entire loan book and the provisioning on that (required each half), while any potential improvements in NIM will come over the term of that loan.....for warehouse loans they wear the loss out of their own cash (note that is a loss of the entire loan), and it also impacts their ability to securitise the loans which then reduces their ability to grow

you cannot look at it with NIM +2%, ECL +1% and say they make an incremental 1%........that would be suicide for the business (not to mention they have been through that 2-3 yrs ago)

The above also applies to your comment @Shadyjames .......the 'risk adjusted NIM' is not one from the other, because as I said, it impacts cashflow, securitization which then impacts their ability to grow.

Also to note is that they are not doing this in a vacuum; plenty of non bank lenders operating in this space, so they are clearly targeting a certain credit profiled customer (they can't compete with the banks, but also don't want to compete with those with very poor credit records so there is a tradeoff they are navigating)