One month on from the Royal Commission’s findings, its shadow has continued to linger over Australia’s economy and banking sector.

Australia’s small cap sector was not immune, losing 24 per cent between November 29, 2017 and February 4, 2019 – when Justice Hayne presented his final report.

This was worse than most companies caught up in the Royal Commission, with the notable exemption of AMP (ASX: AMP) which lost 54 per cent. Even NAB (ASX: NAB) and the Commonwealth Bank (ASX: CBA) only lost 13 per cent and 9 per cent respectively.

Yes, that’s right, small caps were hit worse than companies directly implicated and scrutinised by the Commission.

The winners

But since the findings, small caps have rallied nearly 11%. Of 20 finance stocks only 5 have declined. Curiously, Mortgage Choice (ASX: MOC) are not one of them. Despite falling 2 per cent yesterday, it has gained 12% since the findings were handed down.

Of all finance small caps the biggest winner was Raiz Invest (ASX: RZI) which has gained 50 per cent. Its peers Selfwealth (ASX: SWF) and Domacom (ASX: DCL) gained 22 per cent and 10 per cent respectively representing an average gain of 27 per cent.

Despite talk about a credit crunch, consumer finance stocks were the next biggest winners gaining 9 per cent. Perhaps investors believe it’s only the big firms that are turning off the tap for consumers.

The biggest winner among these stocks was Credible Labs (ASX: CRD) which has gained 50 per cent. Nevertheless, it remains based in Silicon Valley and mainly serves the American market, suggesting investors are more bullish on the American economy than Australia’s.

But, this did not stop Splitit Payments (ASX: SPT) skyrocketing since its IPO. Its growth has slowed recently, though, having only gained 72 per cent since the Royal Commission from 79 cents to $1.35.

But investors lucky enough to get in at the IPO price of 20 cents have more reason to be smug, with the stock having gained 573 per cent since then.

Here’s how finance ASX small caps have performed during the Royal Commission and in the last month…

TickerNamePrice (I)Market CapTotal Return: 29 Nov 2017-1 Feb 2019Total Return since 5 February 2019GICS Industry
GMY GOLDFIELDS MONEY LTD0.70558102856-40.2%3.7%Banks
MOC MORTGAGE CHOICE LTD0.88111247720-53.7%12.1%Thrifts & Mortgage finance
YBR YELLOW BRICK ROAD HOLDINGS L0.05415335298-39.3%-38.6%Thrifts & Mortgage finance
AFG AUSTRALIAN FINANCE GROUP LTD1.21262071456-9.8%39.5%Thrifts & Mortgage finance
RMC RESIMAC GROUP LTD0.48192066800-1.8%2.1%Thrifts & Mortgage finance
ABA AUSWIDE BANK LTD5.322356716812.4%1.1%Thrifts & Mortgage finance
CLH COLLECTION HOUSE LTD1.321851481448.8%-4.9%Consumer Finance
MNY MONEY3 CORP LTD2.0136770403219.8%16.4%Consumer Finance
FEI FE INVESTMENTS GROUP LTD0.08815926350-40.6%-7.4%Consumer Finance
FSA FSA GROUP LTD1.14142605568-20.1%-0.9%Consumer Finance
CRD CREDIBLE LABS INC-CDI1.17285328256050%Consumer Finance
WZR WISR LTD0.0653779335669.0%-13.3%Consumer Finance
CA8 COASSETS LTD0.1224657370-41.2%-20%Consumer Finance
SWF SELFWEALTH LTD0.07311087137-60.9%21.7%Capital Markets
RZI RAIZ INVEST LTD0.6943711792050%Capital Markets
DCL DOMACOM LTD0.1115188341-31.5%10%Capital Markets
ENA ENSURANCE LTD0.03410746952-49.2%6.3%Insurance
GDG GENERATION DEVELOPMENT GROUP0.5872458384-32.2%-22.7%Insurance
FIG FREEDOM INSURANCE GROUP LTD0.024794470-97.2%0Insurance
SPT SPLITIT PAYMENTS LTD1.325320676672N/A72.1%451020