Despite earning $219 million, Liberty Financial stock price plummets
This morning, when the company reports its FY22 annual results, Liberty Financial Group (ASX:LFG) stock price is slightly lower.
Let’s take a look at the report highlights for the company.
Shares of the loan company are currently down 0.67% from Friday’s closing price, trading at $4.45 per share.
What was reported by Liberty Financial Group?
At $219.3 million, statutory net profit after tax (NPAT) increased 18% year over year (year-on-year).
Overall net income after tax and amortization (NPATA) increased 2% year over year to $231.1 million.
Average financial assets increased 6% year over year to $12.9 billion.
The return on financial assets at 1.7% YoY is consistent.
Liberty Financial posted record profitability, originations (loans approved) and portfolio growth, with a final unencumbered dividend of 28.2 cents per share.
The record date for the unfranked dividend of 28.2 cents per share was June 30 and it will be paid on August 31.
The company’s higher cost-to-revenue ratio reduced profitability. From 21.9% in 2H21 to 23.4% in 2H22, it increased. The addition of new employees, which increased the number of employees from 500 to 524 during the period, was one of the reasons cited by the company for the increase.
What else happened in FY22?
In FY22, Liberty Financial’s balance sheet recorded an increase of $50 million in cash. As a result, its net assets grew to $1.11 billion during the reporting period, up 8.34%. The company adds that its debt is rated investment grade BBB- and describes its balance sheet as “stable”.
Breaking down the company’s operating segments, its residential and secured loans broke origination records, with their totals rising 28% and 66%, respectively. These figures led the company to record a record number of originations as a group, with total growth of 36% year-over-year.
On the risk front, the company says COVID-19 is no longer impacting customers, with the predicted risk of the virus falling to 0.3% in FY22 from 9.7% in FY22. during the year 20. What did management say?
Liberty Financial Group Chief Financial Officer Peter Ridel said:
LFG’s capital and liquidity position remains in a strong position to continue supporting our customers and business partners. LFG established seven new funding vehicles in FY22, raising $5 billion in new liquidity. Liberty Financial Group Chief Executive James Boyle also commented:
We continued to make progress in our mission to provide solutions for freethinkers in need of funding. Generating asset growth while maintaining ROA and ROE is further proof of LFG’s growing and sustainable business value.
Summary of news:
- Despite earning $219 million, Liberty Financial stock price plummets
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