Good point on the lower quality loans being backed by more...

Good point on the lower quality loans being backed by more equity.

I don't think the fines (which I consider all but inevitable) will be too severe, it's only a small number of cases and I think the focus of the penalty will be more about preventing reoccurrence, ie if SVR commit to compliance the fines will be more for show. The total cost including legal fees will be significant but hopefully just a one off hit.

The main cause of the profit drop from last FY is net interest margin which has obviously been smashed, but we are pretty clearly near the peak of this rate tightening cycle so hopefully this is about as bad as that number is going to get. So barring a significant rise in bad debts I think there's more upside than downside risk here.