Press releases
21 November 2008 - Liberty Financial Reports Results for the Financial Year ending 30 June 2008
Liberty Financial today announced a net profit after-tax of $36.3m for the year ended 30 June 2008.
On a normalised basis (allowing for expenses no longer incurred in the current year), this after-tax
result decreased by 3% compared to 2007. As with previous years, no dividend was declared
increasing the net capital position of the company to $174.4m.
Managing Director Sherman Ma said that “Despite the events of the past 12 months, Liberty has
produced a credible result that reflects the durability of its differentiated business model. It is a
resilient outcome achieved in an unprecedented environment. Our operational discipline combined with
continued reinvestment of profits leaves us well capitalised to keep serving our clients into the future.”
The results were characterised by a sharp increase in the cost of funding over the period with total
interest expense rising by over 13% to $273m. Liberty was able to absorb some of these increased
costs to reduce the impact on customers during these difficult times while continuing to lend to
households and small businesses.
Ma added, “The impact of the credit crisis is adversely affecting all financial institutions with companies
big and small choosing to withdraw from our markets. While Liberty continued to offer a full suite of
products, our lending for residential mortgages fell by 37% compared to 2007. This was offset in part
by growth of our commercial lending and other business lines.”
In the financial year, Liberty raised over $1.5b in additional funding for all of its businesses. Ma also
said “While we are well capitalised and profitable, the continued uncertainty in financial markets is likely
to keep downward pressure on lending activity and future earnings. Even so, Liberty remains steadfast
in its commitment to continue supporting its valued customers and loyal business partners. Further, we
are encouraged by the Government’s recently announced initiatives which we trust will complement our
endeavours.”
Results Highlights:
- Normalised net profit after-tax of $36.3m compared to $37.4m in 2007 (-3%)
- Shareholders equity of $174m compared to $143m in 2007 (+22%)
- Total managed portfolio of $3,470m compared to $3,692m in 2007 (-6%)
- Total impairment provisions of $17m compared to $13m in 2007 (+28%)
Liberty Financial is one of Australasia's leading specialty finance groups. Its businesses include residential and commercial mortgages, motor vehicle, dealer floorplan, debtor and equipment finance in Australia and New Zealand. It employs approximately 200 professionals and has issued more than $10 billion in domestic and international capital markets. Since 1997, Liberty has helped more than 120,000 customers achieve their financial goals.
To organise an interview or for more information, please contact:
Rebecca Sims, Communications Advisor, Liberty Financial
Email rsims@liberty.com.au
