Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Liberty Group Reports 8% Rise in FY26 Profit as Loan Origination Reaches AU$6.1 Billion
Highlights:
Liberty Group Delivers Profit Growth in FY26
Liberty Group (ASX: LFG) released its annual report for the financial year ended 30 June 2026 on 30 September 2026, highlighting another year of earnings growth, stronger loan origination and disciplined balance-sheet management. The diversified finance company recorded statutory net profit after tax of AU$143.8 million, representing an 8% increase from the previous year. Underlying net profit after tax and before amortisation (NPATA) rose 7% to AU$155.6 million, marking the second consecutive year of profit growth. Net revenue also increased 4% to AU$626 million, while the net interest margin improved slightly to 2.50%. Liberty said the result reflected disciplined pricing, prudent credit settings and effective cost management despite competitive lending conditions and ongoing pressure on customers from interest rates and living costs.
Record Loan Originations Support Asset Growth
A key feature of the FY26 performance was the growth in new lending. Liberty originated a record AU$6.1 billion in new financial assets during the year, up 20% from AU$5.1 billion in FY25. This helped increase total financial assets to AU$15.2 billion, compared with AU$14.7 billion a year earlier. The company experienced growth across several parts of its diversified portfolio, including commercial lending and motor finance. Its Financial Services division also benefited from Moula following Liberty’s acquisition of a controlling interest in the business in December 2025. At the same time, credit quality remained resilient. Impaired loans declined to AU$335 million from AU$341 million, while loan impairment expense remained stable at 19 basis points.
Strong Funding Position and Shareholder Returns
Liberty continued to maintain a robust funding position, raising AU$4.7 billion in new term funding during FY26 and renewing all wholesale facilities. As of 30 June 2026, the Group had AU$9.3 billion of debt facility limits, including AU$4.0 billion immediately available for future originations.
The Board also maintained its focus on shareholder returns. FY26 distributions totalled 52.5 cents per security, including the 15-cent special dividend. The company said the distribution reflected its strong capital position while retaining sufficient capital to support future growth. Looking ahead, Liberty expects FY27 to remain challenging amid higher interest rates, slower economic activity, geopolitical uncertainty and regulatory changes. However, the Group plans to continue investing in automation, artificial intelligence and digital capabilities while maintaining a disciplined approach to pricing, risk, costs and capital allocation.
Note- All data presented is based on information available at the time of writing.
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