Marketing / Content Strategy, page-15

That's the main headwind - rate cuts. The strong growth rate will be enough to overcome it, I reckon. The previous interest rate cut was the first to start properly eating into their NIM, since they could no longer reduce the interest paid to clients.

I think that cut will affect this Dec quarter for the full quarter (since the cut was on Oct 1), so the effect will be apparent from that 1 cut (but I think they renegotiated with ANZ from RBA+0.75% to RBA+0.8%, so the 0.25% effect of the cut will be reduced to 0.2%).

So -0.2% to their NIM should show in the Dec quarter numbers, which I think changes their NIM from 1.7% to 1.5% (assuming 0.05% average paid to clients, meaning a 12% fall in interest income from that 1 cut).

Further cuts like 0.25, 0.5% would have larger effects reducing 1.5% NIM to 1.25, 1.0%, unless the higher cash balance allows for further renegotiation. So this quarter's cashflow number will show whether the growth in trades and client balances is enough to overcome the 1 rate cut. Last quarter was -$464k cashflow, so that's the number to check in the Dec quarterly.