RBA rate cuts bolstering consumer confidence, says CEO Bob Belan
Personal loan and credit card provider Latitude saw a modest increase in originations in the first half of 2025.
New originations across personal and auto loans (cumulatively the ‘money’ division) increased 8% year on year to $783 million. The personal loans segment was substantially more active, with a 13% increase to $370 million in Australia against auto loan growth of 3% to $229 million.
Latitude sells its loan products through over 30 broker networks housing more than 4,500 accredited brokers. It had $3.2 billion in personal and auto loan receivables on the balance sheet at the end of the period.
Its lucrative credit card offering (the ‘pay’ division) is also a major driver of growth. Purchase volumes ran up 15% year on year to $3.5 billion in the period, with total receivables closing at $3.7 billion.
“This result is another positive step forward for Latitude as we stay focused on our strategy and simplifying our business, delivering on commercial and operational fundamentals and growing in segments where we’re strongest,” said Latitude’s managing director and chief executive Bob Belan (pictured).
“Retail trading gained momentum throughout the first half, and pleasingly consumer confidence lifted as interest rates began to ease. Consumers became more comfortable purchasing on credit,” he added.
Lower funding costs led to a notable 1.4-percentage-point increase in net interest margins across the whole group, leading to a bumper 69% yearly increase in net profit after tax (NPAT) to $46.2 million.
