Latitude jumps after full-year profit more than doubles
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The news: Shares in Latitude Group rallied in afternoon trade after the company reported a sharp increase in full-year profit.
Shares rose 7.75% to 94 cents at 1:43pm AEDT.
The numbers: The financial services company posted a 59% increase in net profit for the 12 months to December 2025 to $105.1 million, citing improved margins and growth in receivables.
Statutory net profit after tax rose 208% year-on-year to $94.4 million, while operating income came in at $839.5 million, up 15% from the prior corresponding period. Gross receivables reached its highest levels in five years to $7.2 billion.
The company declared a fully franked second-half dividend of 5 cents per share, following a 4 cents per share unfranked payout for 1H25.
The context: Latitude CEO Bob Belan said the results were driven by record receivables volumes and net interest margins improvement, reflecting targeted pricing initiatives and the benefit of lower funding costs.
The company said it expects credit performance to remain within targeted ranges and will continue to invest in cybersecurity and AI to enhance operating leverages over the long-term.
The source: ASX
