Humm Group Consumer Earnings Strengthen in Face of Commercial Headwinds

Humm Group (ASX: HUM) reported statutory profit after tax of $15.7 million for the 2026 financial year, while underlying net profit after tax adjusted for non-cash items and excluding irregular items reached $44.2m.

Average assets under management (AUM) remained broadly flat at $5.2 billion, with Commercial average AUM rising 5.1% to $3.3b while Consumer average net receivables (ANR) fell 7.8% to $1.9b.

The group’s net interest margin (NIM) increased 10 basis points to 5.5%, supported by lower funding costs, disciplined pricing, and a stronger Consumer portfolio mix despite slightly lower net interest income and reduced average receivables.

Consumer NPAT adjusted for non-cash items climbed 25.8% to $31.2m, helping offset weaker Commercial earnings and substantial corporate costs during a year marked by legacy, regulatory and transaction-related activity.

Commercial Pressure Offset

Commercial statutory profit after tax fell 46.8% to $23.2m as small and medium-sized enterprise lending demand softened, while volumes declined 7.9% to $1.4 billion and Commercial NIM remained broadly stable at 3.4%.

The Consumer business delivered statutory profit after tax of $26.9m, with Australian Cards increasing 79.5% to $13.1m and New Zealand Cards rising 27.9% to $14.2m.

Point of Sale Payment Plans volumes declined 29.0% to $736.4m as the legacy humm Classic product continued its planned run-off and Australia transitioned to the regulated hummloan product, which generated approved originations of $306.7m during FY26.

International growth remained a counterweight, with humm Ireland volumes rising 27.8% and humm UK volumes increasing 41.1%, while the Canadian repositioning reduced operating expenses by $4.5m compared with the previous year.

Group volumes fell 10.5% to $3.5b, although closing AUM of $5.3b was down a more modest 4.3% and Commercial closing AUM edged 0.1% higher to $3.3b.

Disciplined Credit And Funding

Net credit loss to ANR increased 20 basis points to 2.0%, reflecting portfolio seasoning and softer SME conditions, while Australian Cards improved by 30 basis points to 2.3% following underwriting and credit scorecard optimisation.

Underlying cost-to-income ratio was 51.9% excluding irregular items, with a largely stable underlying cost base maintained despite inflationary pressure and higher compliance obligations.

The group closed FY26 with $5.4b of on-balance-sheet wholesale debt facilities and $1.4b of undrawn capacity, including Forward Flow capacity, available to support future growth.

A fully franked final dividend of 0.50 cents per share took total FY26 dividends to 2.00 cents per share, representing a 4.5% annualised shareholder return.

Transformation Focus Turns

“FY26 demonstrated the resilience of Humm Group’s operating model and the benefits of disciplined execution through a year shaped by macroeconomic pressure and an extraordinary level of corporate activity,” chief executive officer Angelo Demasi said.

“With legacy matters substantially behind the Group, extended funding capacity and a renewed focus on disciplined execution, hummgroup is better positioned to convert its transformation investment into stronger earnings quality and sustainable shareholder value.”

The group enters FY27 with the Forum Finance litigation concluded, its Extraordinary General Meeting and Takeovers Panel proceedings resolved, and multiple Australian Securities and Investments Commission investigations into historical matters now concluded.

Management expects the final stages of platform transformation to shift attention from building foundations towards realising benefits through greater consumer portfolio scale, AI adoption, process automation, and improved customer and merchant experiences.

Humm Group will continue prioritising volume, margin, credit quality, and capital allocation amid ongoing macroeconomic uncertainty, with the Consumer transition expected to reach an inflection point as growth in hummloan increasingly offsets the decline in humm Classic.