Humm Group posts weaker Q3 performance, flags subdued FY26 earnings

The news: Humm Group has reported a 5.1% year-on-year increase in average assets under management to $5.4 billion for the third quarter, however commercial volumes fell 4% to $318 million reflecting subdued consumer demand amid macroeconomic uncertainty.

The numbers: For the quarter ended 31 March, consumer volumes fell 11.3% year-on-year to $502 million, while volumes in point of sale payment plans dropped 28.9% to $175.8 million.

Net interest margin was 5.3%, down 20 basis points from the year prior, with management attributing the decline to deliberate portfolio choices and a rapidly evolving interest rate environment.

The context: Humm said the weaker third-quarter volumes were driven by subdued demand among Australian small-to-medium sized businesses, as well as elevated irregular costs stemming from ongoing Takeovers Panel proceedings.