With a mortgage book in run-off, Liberty Financial is ramping up SME lending, personal loans and motor finance. Liberty yesterday reported that its net profit fell to A$193 million over the year to June 2023, from $231 million in FY2022. Its net interest margin fell to 2.76 per cent from 3.08 per cent. Liberty’s second half NIM was 2.65 per cent and the exit NIM was 2.56 per cent as higher funding costs persist. Residential loan originations of $3.0 billion over the year were 23 per cent less than FY2022. Liberty’s mortgage book fell to $8.1 billion from $8.7 billion over the year “impacted by higher than trend discharges and amortisation”. Overall, its loan portfolio lifted to $13.5 billion from $12.9 billion, due to growth in personal loans, motor finance and SME. Loans in arrears lifted markedly over the year, with 30 day loan delinquencies at 4.4 per cent at the end of June 2023, up from 3.4 per cent in December. 90 day arrears were 1.5 per cent, up from 1.0 per cent six months earlier. Liberty said there was a surge in the “number of customers seeking repayment variations” though the number doing so had “reduced each month since April.”