That question on why they got it wrong at the interim wasnt...

That question on why they got it wrong at the interim wasnt specifically asked, but there was one on hedging etc.

Basically, they dont hedge M3 book because its high margin and increases in cost can be passed on off setting back book reduction in margin.

I have to assume it is the speed at which rates have risen that caught them. Only time to reprice the book will fix this.

the concerns were acknowledged and that they could have done better with the funding stack. However, pointed to reduction in margin they paid over BBSW over last few years and the big headroom giving them edge of competitors. CEO confident business will increase market share as most competitors would be in a worse position.

again reiterated FY25 bounce back and rebuilding to an ROE of 15%. CEO confident that can be achieved regardless in FY26, and if rates move in their favour that could occur earlier in FY25.

ASIC issue has not progressed yet, still early stages and no provision.

Moving up credit quality curve to reduce bad debts, increase leverage and drive efficiciency more than offsetting reduction in yield. Slower to play out due to troubles in NZ which they believe will resolve by FY25 and obviously massive rise in rates.

Board actively considering buybacks or acquisition with the 80m in free cash.

Cyber and compliance investment mostly a one off with much lower costs ongoing after build out of better capabilities.

CEO confident of bad debt outlook remaining in stated target range due to low unemployment. Most customers only have one loan with SVR and their biggest commitment. The car essential to their lives. Some customers getting slower to pay, but intention is there and as long as job is retained no problem.

(predictions of unemployment rising in AUS/NZ obviously will challenge this rosy outlook a bit.)

more detail at AGM with more refined guidance.