ASX Quarterlies: What recession? Loan books, managed funds balloon in another strong quarter
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It’s quarterlies season again as the ASX market announcements page becomes increasingly flooded with the first wave of lodgements.
Signs of a recession are hard to find as lenders churn out record originations and step up their loan books.
Here are the companies that reported quarterly updates today (taken around lunch hour).
Tasmania-based MyState reported continued strong home loan and customer deposit growth for Q1 FY23.
MyState’s home loan book was $7.3 billion at 30 September 2022, up 6.9% over the quarter.
Customer deposits grew 10.1% to $6.1b.
Loan growth combined with rising interest rates and the benefit of hedging resulted in a 24% increase in net interest income.
MyState continues to strengthen its balance sheet following the issue of Additional Tier 1 capital on 30 August, with the total capital ratio increasing by 168bps from 30 June to 14.1%.
“We are well placed to continue execution of our growth strategy, refine our digital and AI capabilities and implement initiatives that make our products and services even easier and more intuitive for our customers to use,” said CEO Brett Morgan.
Small business lender Butn reported record quarterly originations totalling $102.2 million, a 63% increase on the pcp, and a 20% increase on the prior quarter.
September was a record for originations at $35.4 million, the sixth consecutive record month.
The company notched up quarterly revenue of $2.6 million, 110% increase on pcp with a 2.5% revenue margin (2.0% in the pcp).
Butn is seeing growth in its platform channel which is driving record originations at increasing revenue margin with no additional operational staff.
The company said this was possible due its mass distribution strategy through increased operating leverage.
Butn finished the quarter with a strong closing cash position of $123.m, complemented by a new debt facility post quarter end.
The online financial advisor and wealth manager says its total funds under management (FUM) grew to $492 million at 30 September.
FUM grew by 4.6% during the September quarter compared to a decline in ASX 200 of 1.4% during the quarter.
The fund says the pace of its growth has slowed during this market downturn, however it continues to add new accounts and receive net inflows into the funds.
Subscription income from Intelligent Investor and Eureka Report, important elements in INV’s customer ecosystem, meanwhile grew 3.7% to $1.36 million in Q1 FY2023 compared to the pcp.
IT interconnection services company Megaport reported solid Q1 Monthly Recurring Revenue (MRR) growth of 9% QoQ, up $913k to $11.6m in September.
Total revenue for the quarter was $33.7m, up 10% compared to the last quarter. Annualised recurring revenue at 30 September was $139m.
During the quarter, Megaport sold 943 new services, up 3% QoQ for total services of 28,326.
Megaport also delivered EBITDA profit for 1Q FY23, a second consecutive period and building on the move to profitability at the end of last fiscal year.
Coming off record performance in FY22 where it reported best ever NPAT of $131.6m, automotive parts company Bapcor held its AGM this morning.
Bapcor says that in FY23, the company will continue to expect a solid underlying trading performance, subject to market conditions.
Bapcor believes trading will continue to benefit from positive fundamentals of the vehicle aftermarket.
Priorities for FY23 include enhancing its distribution capabilities with Victorian DC (distribution centre) targeted to achieve steady-state performance, and good progress on construction of Queensland DC.