Citi cautious over prospects of Australian non-bank lenders

Liberty

04/09/2023 01:11

** Analysts at Citi are cautious on the prospects of
Australian non-bank lenders 
    ** Brokerage expects non-bank lenders to face risk of
further funding cost or competitive impact on net interest
margin 
    ** Citi says upfront and trail commissions of Australian
Finance Group Ltd  AFG.AX  continue to be challenged by rising
payout ratios
    ** Brokerage says momentum across both distribution and
lending segments of co are required for brokerage to be more
positive on stock
    ** Citi says Latitude Group Holdings Ltd  LFS.AX  is fully
priced for earnings recovery with 1H23 likely being a trough in
earnings 
    ** FY24 will be affected by declining average AUM for
Resimac Group Ltd  RMC.AX  - Citi
    ** Shares of AFG and RMS this year up 10.7% and 48.4%,
respectively, while LFS is down 8.8%, as of last close 

   

 (Reporting by John Biju in Bengaluru)
 ((John.Biju@thomsonreuters.com;))