Solvar earnings: NPAT up, commercial lending grows, dividend rises

The Solvar Ltd (ASX:SVR) share price is in focus today after the company reported a 7.5% lift in normalised NPAT to $36.1 million, as well as continued progress in scaling its commercial lending and an increased fully franked dividend for FY26.

What did Solvar report?

• Normalised Net Profit After Tax (NPAT) up 7.5% to $36.1 million
• Statutory NPAT down 6.2% to $29.5 million
• Normalised earnings per share rose 14.7% to 19.0 cents
• Total FY26 fully franked dividend of 19.5 cents per share (including special dividend)
• Loan book in continuing operations up 10.5% to $920.3 million
• Commercial loan book now $109.8 million, with Bennji reaching $49.7 million

What else do investors need to know?

Solvar has been simplifying its operations and investing in scalable growth platforms, with commercial lending through Bennji now a key strategic pillar. The continued rise in the commercial loan book has helped diversify the group’s earnings and underpins a shift towards sustainable long-term growth.

Funding remains robust, with the company securing a new $488 million warehouse facility for Money3 and expanding overall funding capacity to around $1.1 billion. These moves bring over $400 million in available capacity, positioning Solvar for further loan book growth and expected funding cost savings in FY27.

Solvar also completed its exit from the New Zealand market, selling its written-off loan book and reducing future complexity. The group resolved historical ASIC proceedings this year and highlighted improvements made in credit assessment and compliance frameworks.

What did Solvar management say?

Mr Scott Baldwin, CEO and Managing Director of Solvar, said:

FY26 was an important year for Solvar as we continued rebuilding the foundations of the business to create a platform delivering sustainable growth.

What’s next for Solvar?

Solvar expects to see continued growth in both its consumer and commercial lending portfolios heading into FY27. The group will focus on expanding its commercial offering through Bennji, driving productivity through technology, and keeping capital allocation disciplined.

Management believes that Solvar’s strengthened funding platform, scalable operations, and focus on responsible lending leave it well placed to deliver sustainable growth and attractive returns for shareholders.

Solvar share price snapshot

Over the past 12 months, Solvar shares have risen 6%, outperforming the All Ordinaries Index (ASX: XJO), which has risen 1% over the same period.

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The post Solvar earnings: NPAT up, commercial lending grows, dividend rises appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.