Thanks Daniel, they wouldn't be saying that unless they were...

Thanks Daniel, they wouldn't be saying that unless they were pretty confident about H2 (and they would have a very strong idea of what that's looking like already, given we are almost 3 months in).

I've pulled the below figures from their last few investor reports. I've divided Normalised NPAT by 0.7 to back out tax. I also excluded some operating expenses (from FY19 figures) to do with paywise, because they highlighted it in the report, so I suppose isn't comparable.

Big jump in profit this half of $31m (before tax), driven by Net Interest Income increasing $18m and operating expenses only up $3m, and loan impairments down $14m.

AUM at the end of each half has been $12.8b, $13.4b, $14.2b, $14.9b and $15.1b so there is still growth there, although fairly marginal over the last half. But if they can increase NII through cheaper wholesale funding we are in for a very strong 2nd half. Especially as their operating expenses comparatively flat, with their cost to income ratio improving materially every half.

Appreciate your insight into the teleconference, it helped convince me to top up further today. Even if NPAT stayed flat going forward this is a good buy IMO, and all things remaining equal, I can only see further upside.

Disclaimer: Not financial advice and I may well have made an error in my analysis so DYOR!