Resimac Group Ltd (ASX: RMC) released the below trading update:
- In 1H20, the normalised NPAT guidance would range between $24 to $27 million, indicating lower Q1 funding costs due to relatively low spread between the RBA Cash Rate and 30-day BBSW along with continued strong AUM growth.
- In Q2 FY20, the change in spreads between the RBA Cash Rate and 30-day BBSW, compared to Q1 FY20 resulted in increased funding cost.
- The ongoing uncertainty about the RBA monetary policy and cash rates in 2020 continues. Assuming the spread to remain in line with current levels, RMC expects its 2H FY20 NPAT to be lower than NPAT in 1H FY2020.
- RMC’s principally funded AUM at 31October 2019 was ~ $10.9 billion.
At AEST 1:29 PM, RMC’s shares stood at $1.1, 2.8% above its previous close.