• Newly launched commercial business expanding with loan book exposure of ~$67.0m
• Sale of New Zealand written off loan book for $NZ9.4m accelerating the exit from New Zealand
• ASIC v Money3 Judgement delivered with majority of claims dismissed by the Federal Court

Solvar Ltd reported a strong H1 FY26 performance, with the newly launched commercial business expanding to ~$67.0m in loan book exposure. The company also announced the sale of its New Zealand written off loan book for $NZ9.4m, accelerating the exit from New Zealand and lifting H1 FY26 profitability. Additionally, the ASIC v Money3 Judgement was delivered, with the majority of claims dismissed by the Federal Court. The company saw strong Christmas demand from returning customers and growth in commercial lending, reversing the initial slowdown in H1 FY26, with the Australian loan book up 1.7% since June 25 at $846.6m. The AFS business unit delivered record H1 FY26 new loan originations, and Statutory Earnings Per Share increased 13.5% to 9.3 cents (Normalised EPS of 10.4 cents). Total H1 FY26 fully franked dividends declared were 11.0 cents per share, including 5.0 cents of special fully franked dividends and 6.0 cents interim fully franked dividend. The sale of assets in New Zealand funded the payment of special dividends, and a new $488.0m competitively priced warehouse facility is expected to significantly reduce interest expense in FY27, with total funding limits of ~$1.1 billion and over $500.0m in funding headroom. The company also announced a share buyback of 5.3 million shares during H1 FY26.

The Group expects to maintain dividend payout ratio in H2 FY26 and forecasts a normalised NPAT of $36m (including one-off sale of written off loan book in New Zealand).

The company expects increased loan originations to drive growth into H2 FY26, with Bennji expansion underway and expected to double the loan book by Q3. The final stages of the New Zealand run-down are underway, and the Money3 business is expected to conclude on underwriting policy changes post the ASIC matter. The AFS business unit lending momentum is expected to continue into H2 FY26.