humm Group Limited (ASX: HUM), a non-bank financial services company that provides flexible payment and lending solutions to businesses and consumers, today announced a net profit from ordinary activities after tax of $15.7 million for the year ended 30 June 2026. This figure represents a substantial 60% decline from the $39.6 million reported in the previous corresponding period. Revenue from ordinary activities also experienced a modest dip of 5% to $634.4 million. Despite the profit contraction, the company maintained its total dividend payout for the year at 2.00 cents per share, comprising an interim dividend of 1.50 cents and a final dividend of 0.50 cents.
The significant reduction in profit was primarily attributed to higher credit impairment charges and substantial irregular items, which totalled $19.1 million in FY26 compared to $6.0 million in FY25. These irregular items included legal and regulatory compliance costs, M&A activities, and expenses associated with EGM and Takeovers Panel proceedings. These factors also contributed to a 10.5% increase in operating expenses to $188.8 million, resulting in the cost-to-income ratio rising to 57.7% from 51.7%. Positively, humm Group achieved a 10 basis point improvement in its Net Interest Margin (NIM) to 5.5%, and Net Tangible Assets (NTA) per security increased to 82 cents from 77 cents.
Operational metrics for the year indicated transaction volumes decreasing by 10.5% to $3,501.4 million, and assets under management (AUM) falling 4.3% to $5,259.7 million. The company noted resilient underlying business performance despite macroeconomic headwinds and the extensive corporate activity during the year. International operations in Ireland and the UK delivered strong growth, while the Canadian business underwent a successful operational reset. humm Group stated it enters FY27 focused on disciplined risk and capital management, aiming to translate recent investments into sustainable growth for shareholders amidst an uncertain economic environment.
