Company Interview / Pepper Money sees SMSF lending surge

Key bullet points:

- Pepper Money (ASX:PPM) surpasses $20 billion in assets under management

- SMSF loan originations surge by nearly 55%

- First-half results show $47 million impact and $4.5 billion new originations

- Successful $1.25 billion securitisation deal, oversubscribed by offshore investors

Pepper Money, marking its 25th anniversary, sees its evolution from a challenger brand to a household name as a major milestone. Mario Rehayem reflects on the company’s growth, highlighting $20 billion in assets under management and support for over 570,000 Australians with home loans, investment properties, and auto financing. Rehayem notes the company’s ongoing commitment to financial inclusion, with flexibility in lending to customers who may be overlooked by traditional banks.

In its recent first-half results, Pepper Money reported an impact of $47 million and $4.5 billion in new originations, pushing them past the $20 billion threshold. Rehayem emphasises the company’s focus on residential and commercial mortgages, as well as auto finance. He points out a surge in self-managed super fund (SMSF) lending, where loan limits have increased to $1 million at a 90% loan-to-value ratio, responding to broker and trustee demand. SMSF products have seen nearly 55% growth this year.

Rehayem attributes a resurgence in property and auto activity to rate cuts and increased consumer confidence, supported by government incentive schemes. He also notes Pepper Money’s successful securitisation deal, upsized to $1.25 billion, reflecting strong international investor interest in Australian assets and the company’s responsible lending practices.