Thank you for standing by, and welcome to the Liberty Financial Group Annual General Meeting. I would now like to hand the conference over to Mr. Richard Longes, Chair. Please go ahead.
Thank you, and good morning, everyone. My name's Richard Longes, and I'm Chair of the Liberty Group. I'd like to start by acknowledging the traditional owners of this land on which we're meeting, the Gadigal people of the Eora Nation, and we pay our respects to the elders, past, present, and extend that respect to other Aboriginal and Torres Strait Islanders who are present today. On behalf of my fellow directors, it is my pleasure to welcome you to the 2024 Annual General Meeting of the shareholders of Liberty Financial Group Limited and the meeting of the unit holders of the Liberty Financial Group Trust, which I will refer together today as the meeting. We are conducting a hybrid meeting today, which is combined in-person and a virtual meeting. As we have a quorum present, I declare the meeting open.
Security holders and their representatives or proxy holders online will be able to participate in the meeting in real time, including by voting and asking questions. I will explain more on that in a little while. Now, let me introduce the directors of Liberty Group to our meeting today. James Boyle, our Chief Executive Officer, Executive Director Sherman Ma, and non-executive directors Peter Hawkins, Leona Murphy, Jane Watts, and Piyush Gupta. We're also joined by our Chief Financial Officer and Company Secretary, Peter Riedel, by Matthew Ryan, our General Counsel, and by Dean Waters from the Liberty Group's external auditors, KPMG. Dean will be available today to answer any questions you have on the audit of the financial statements later in the meeting. The prepared speeches from me as Chair and James Boyle as CEO have been released to the market.
Prior to these addresses, I would like to outline the technology and procedural matters. An online virtual meeting guide, which explains how security holders may participate virtually, is on the Liberty Group website and was released to the market. For those of you online, on your screen, you'll see the presentation slides. At the bottom of the screen, you will see two boxes. These allow you to get a voting card and ask a question. You will also see a number of relevant documents that are available to download. If you have a question that you would like to ask today, you may type the questions into the online platform. To do this, click on the box, Ask a Question, and follow the prompts. To ensure that you have enough time to submit your questions, I encourage you to do this now.
For those of you in the room, you will simply need to raise your hand at the appropriate time to ask any questions. Questions that are relevant to the business of this meeting will be read aloud to me by the MC. We may aggregate questions if we receive multiple questions on the same topic. We will ask each question at the relevant time of business. All questions should be addressed to me as Chair. Please keep them concise and clear. If we run out of time to answer all questions, we will answer them in due course and make our responses available via email or on the Liberty website. I will now summarize the voting procedures. All resolutions today will be voted on by poll, which is now open. You may cast a live vote during the meeting or on the online platform.
Please click on Get a Voting Card and follow the prompts. You may cast your live vote at any time during the meeting, and we encourage you to vote as soon as you are ready. Live voting on the online platform will close five minutes after the close of the meeting, and I'll let you know when this five-minute period starts. I confirm that I will vote all available undirected proxies that I hold as Chair in favor of each resolution. During the meeting, we will display on the presentation slides the number of proxies received prior to the meeting on each resolution. The final results on the meeting will be released to the market as soon as they are available later today.
If you experience any difficulties participating in today's meeting using the online platform, please refer to the Virtual Meeting Online Guide, which can be found on the Liberty Group website or by contacting Link on 1800 990 363 for support. If we experience significant technical issues during today's meeting, we will provide further appropriate instructions by market release or on our website. Security holders, corporate representatives, and proxy holders who have registered to watch the meeting will also be notified. Link Market Services is the Returning Officer for this meeting. The agenda for today's meeting is as follows: I will first deliver an address, followed by an address from our CEO, James Boyle. We will then address the formal items of the meeting as set out in the notice of meeting. Now, let me turn to starting with my address.
The year ended June 30, 2024 for the Liberty Group has delivered a sound result consistent with the current economic and competitive environment, and a result that distinguishes us. Liberty Group achieved statutory net profit after tax for the year ended June 30, 2024 of AUD 115 million, or AUD 0.38 per stapled security. This result is 36% lower than the full year 2023, reflecting the challenging market conditions. Consistent with statements made about our distribution policy, the group distributed earnings of AUD 0.25 per stapled security to security holders at a payout ratio of 66%. This distribution equates to an unfranked yield of 6.6% based on the security price as at June 28, 2024. We affirm our current policy to distribute 40%-80% of the Liberty Group net profit after tax to security holders annually.
These results were achieved in an environment of rising interest rates and high cost of living. The results are a testament to the dedication of the Liberty team and the strength of our commitment to our customers. As an investment grade-rated financial institution, Liberty Group is in a strong financial position, and we're optimistic that the next financial year will enable us to deliver profit growth for security holders. This is my last AGM to you as Chair. It is more than nineteen years since I joined the Liberty Board, and I've had a great deal of pleasure and pride in watching the Liberty Group under the leadership of Sherman Ma, James Boyle, and Peter Riedl. I would like to thank my board colleagues, Peter Hawkins, Leona Murphy, and Jane Watts, for their support and guidance.
Piyush Gupta recently joined the board as part of our team and part of our renewal process and is up for election at today's AGM. Subject to his appointment today, the board has elected Piyush to be the Chair of the Liberty Group following conclusion of today's AGM. With Piyush's deep boardroom experience and his extensive career in financial services, I'm confident that he will make a significant contribution to the future success of the Liberty Group, and finally, thanks to you, the security holders, for your support over a long period. I'll now hand over to James.
Thank you, Richard, and good morning, everyone. I'd like to add my welcome to all security holders who have taken the time to join our meeting today and join Richard in acknowledging the traditional owners of the lands we are presenting from. Before providing a business update, I would like to take a moment to express gratitude to Richard as our inaugural Chair of Liberty. For nearly twenty years, Richard has provided us with counsel, feedback, support, and critique, for which we are hugely grateful. We would not be the business we are today without Richard's influence over this time. So on behalf of our entire Liberty team, our board, our security holders, and in particular from Sherman, Pete, and I, we would like to thank you, Richard. Your contributions have significantly shaped our journey, and we are deeply grateful.
Thanks very much, James.
Today, I plan to provide a business update with financial results for the last financial year and the most recent quarter's business results. I will then close with an outlook for the coming financial year. In financial year 2024, given the difficult trading conditions, we were happy to deliver strong loan originations, leading to portfolio growth through our targeted diversification strategy. Over the year, our net interest margin declined, but in the second half of the financial year was stable, which is a positive moving into the new financial year. We were also able to continue supporting our customers in hardship and to manage loan delinquency resulting from tougher economic conditions and challenged household budgets. Finally, we continued our focus on exceptional service and improved digital engagement, which was reflected in our positive net promoter scores from brokers and customers.
Turning to our financial year 2024 operating highlights, we were delighted to have once again delivered continued portfolio growth and record loan originations while exercising ongoing cost discipline. We were able to increase our portfolio by 7%, averaging the year with assets of AUD 14.1 billion. Our new asset originations were at an all-time high at AUD 5.7 billion, up 5% on the prior corresponding period. Our impaired loans increased by 56%, up to AUD 309 million, reflecting both the growth and diversity in our portfolio, as well as the tougher economic conditions we continue to help our customers manage through. We were particularly proud of our team's ability to achieve this record growth with a net decrease in FTE of 2%, down to 535.
We feel it important to highlight that we will continue to invest in our team and platform as we execute our diversification strategy moving forward. Our broker net promoter score once again came in at an industry-leading 82, and our customer net promoter score increased slightly to 62. Despite strong performance on the fundamental value drivers of our business, we felt the impacts of the environment through compressed margins and increased provisions. Our full FY 2024 net profit after tax and amortization was AUD 132 million, which is down from AUD 187 million last financial year. Our net revenue held relatively steady, with a slight decrease of 1% to AUD 583 million. Our net interest margin reflected the impact of increased costs and reduced to 2.51%, down 25 basis points.
Our bad and doubtful debts continued to normalize to the current trading conditions of higher interest rates and challenged household budgets at 25 basis points, up from 13 basis points the prior year. Our cost-to-income ratio increased slightly from 26.9% to 28%, and consequentially, we distributed AUD 0.25, down 44% from the prior corresponding period. Turning now to business highlights during the first quarter of financial year 2025, many of the same trends have continued, and we have been able to grow our portfolio at group level. Our net interest margin has remained relatively flat through the quarter, continuing the trend of improved trading conditions. We maintained momentum with loan originations at group level, with the improvement in residential lending offsetting some slowing in our new motor loans.
The total group originations were AUD 1.455 billion for the quarter, which is consistent with the average of the last two quarters. As previously mentioned, we are happy to report that we have been able to continue to grow our portfolio during the first quarter. Our residential lending portfolio has remained flat for the third quarter in a row. We believe current conditions will provide an opportunity to return to growth in the foreseeable future. Elsewhere, we continue to benefit from origination momentum, which resulted in portfolio growth in both our secured and financial services segments. As a result, we finished the quarter with a group portfolio of AUD 14.774 billion. Finally, looking ahead to the rest of FY 2025, we continue to operate in conditions that are challenged by global events and market volatility.
However, we believe there is some confidence returning as the expectations of interest rate decreases improve. We remain confident of the need and place for non-deposit-taking finance companies as these changes occur. Until those interest rate changes manifest, we anticipate the ongoing need to provide greater support to customers in hardship. However, we also expect to see more opportunities for residential lending with less elevated discharges, which would result in home lending portfolio growth. We have also seen positive investor sentiment and strong engagement in debt capital markets, which we believe supports an improving period for net interest margins. Finally, we continue our focus on cost efficiency and service, with improved digital tools and engagement for our business partners and customers. I would now like to hand back to Richard for the formal business of this meeting.
Thank you, James. I will now turn to the formal part of the meeting. The first item of business is to receive and consider the financial report, directors' report, and auditors' report for the Liberty Group, comprising the company and trust, for the year ended June 30, 2024 . While there is no resolution for security holders to vote on this item of business, it is an opportunity to discuss the reports and ask any questions that you may have for the board or our auditors. The Liberty Group's external auditor, KPMG, is represented by Dean Waters, who can answer any questions relevant to the conduct of the audit. This includes the independence of the auditor, the preparation and content of the independent auditor's report, and the accounting policies adopted by the Liberty Group in relation to the preparation of its financial statements. I will now take any questions related to the financial report, directors' report, or auditors' report. Do we have any questions?
We've received no questions on this item, Chair.
Thank you. In that case, we'll pass on to the next business. So we'll proceed to the following resolutions. The voting exclusions that apply to today's resolutions are described in the notice of meeting. Items two to eight are ordinary resolutions. Ordinary resolutions are passed when more than 50% of the vote cast by, or on behalf of, security holders entitled to vote on the resolution are in favor. The details of proxy voting for each resolution will be shown on the screen at the conclusion of any discussion on the item. Item two is the remuneration report, which was released to the ASX on August 26 , 2024 and was included in the 2024 Liberty Group Annual Report.
As outlined in the notice of meeting, the remuneration report includes details of the remuneration provided to non-executive directors and other key management personnel for the year ended June 30, 2024 . A discussion of the Board's policy in relation to the nature and level of remuneration of the directors, Chief Executive Officer, and other key management personnel, and a discussion of the relationship between the Board's remuneration policy and the financial performance. The vote on the remuneration report is advisory only and does not bind the directors of the company, the responsible entity. Nevertheless, directors will take into account the outcome of the vote and any security holder feedback when considering future remuneration arrangements. We will take a brief moment to allow for any questions. Are there any questions, Matt, online?
We've received no questions on this item, Chair.
Thank you. I now put item two to the meeting as a non-binding ordinary resolution, that pursuant to and in accordance with Section 250R of the Corporations Act, and for all other purposes, approval is given for the adoption of the remuneration report as contained in the annual report for the financial year ended June 30, 2024. I'll ask you now to record your vote. The proxies received before the meeting will now be displayed on the screen. Thank you very much. We'll now move to item three, which seeks your approval for the re-election of Mr. Sherman Ma as director.
The board recommends that you vote in favor of this resolution. Details of Sherman's qualifications and career experience are outlined in the notice of meeting of the directors' report. However, it goes without saying that the whole basis of this company rose out of Sherman's wonderful thinking, and he has the complete support of the board, and he has retained his interest in the company, for which we are all very grateful. Would you like to say some words?
Yes. Thank you, Richard, and good morning, everyone. I am seeking reappointment as a director of Liberty Financial Group Limited, a business that I have been associated with since its founding over 27 years ago. Over this time, I've been involved with various aspects of the business, ranging from sales and distribution, risk management, customer service, human resources, marketing, technology, finance, and corporate development, for example. Commencing with only one round of equity funding of just under AUD 6 million of seed capital, Liberty has grown its shareholder equity to about AUD 1.2 billion today, while delivering healthy distributions to security holders and distinctive outcomes to many of its constituents. As a director, I undertake to continue doing my part to ensure Liberty's capital, capabilities, controls, and culture remains distinguished in our industry so that we can continue to generate attractive profits per unit of risk over the long- term.
I'm as energized by this prospect today as I was when the business was founded, and thank security holders in advance for the privilege to continue serving in this capacity as director. Finally, as James did earlier, I would also like to express deep gratitude for Richard's leadership for over nearly 20 years. Much of our achievements and success has been due directly to his skillful and reliable stewardship of Liberty. For example, many of our governance practices and infrastructure simply would not exist without him. Richard has been a role model in the truest sense for myself and others, and we go forward with many of his values reflected in our culture. Richard, you will be dearly missed in the boardroom, but our friendship will continue beyond. Personally, and on behalf of security holders, colleagues at Liberty, and the board, thank you, thank you, thank you.
I am trying not to have tears in my eyes. Thank you, Sherman. That was extremely kind of you. So, we will put the motion to the meeting that Mr. Sherman Ma, having retired from his office as director in accordance with Clause 23 of the company's constitution and ASX Listing Rule 14.5, and being eligible, having offered himself for re-election, be re-elected as a director of the company. Can you record your vote? The proxies received before the meeting will now be displayed on the screen. There being no questions, I will now pass on to the next item, which is item four, seeking your approval for the election of Piyush Gupta as a director.
We have been very lucky in convincing Piyush to join the board with his qualifications and background, and the board has asked him to take over from me as chair, subject, of course, to his reappointment as a director following this resolution, and I am quite confident that the board will continue not only to work with the company and its team going forward, but will in fact grow as a result. Piyush, would you like to say a few words?
Thank you, Richard. Good morning, fellow security holders. I present myself for election to the Board of Liberty Financial Group Limited. I first joined the board in July 2024 and bring to the role over 40 years' experience in the financial services sector, including over 14 years of governance experience on a wide range of diverse boards. I've been a successful entrepreneur, having co-founded and grown a wealth management firm, and I've also worked as a senior executive in a global multinational firm, to whom we sold our business. My executive life was spent in the stewardship of other people's money, a role requiring trust. My governance experience is extensive across corporate, government, not-for-profit sectors, and on boards both large and small, and in both the public and private sectors.
My experience also includes serving on or chairing subcommittees of boards such as audit, risk, remuneration, investment, and technology. My current directorships include Dexus, a listed real estate investment trust, a mutual bank, Great Southern Bank, the Institute of Chartered Accountants, QuintessenceLabs, which is a pioneer in quantum cryptography, and the Aboriginal Investment Northern Territory, a social impact organization in the indigenous space. These experiences across a range of industries equip me to bring broad perspective, sound oversight, counsel, and judgment to matters for which the Liberty Board is responsible. I believe my experience will allow me to add value, to constructively work with, support, and also to occasionally constructively challenge Liberty's management team to deliver our strategy.
I'd like to thank my board colleagues for their unanimous support for my appointment, and I confirm to you my capacity, desire, and capability to represent you. I'd be honored to serve as one of your directors and proud to be part of the Liberty team. Finally, and although I've only served alongside Richard for a relatively short space of time, I'm very conscious of the very large shoes that Richard will be leaving behind. So, from my side as well, Richard, thank you for all that you've done for this firm, and, you know, I'm sure all of my board colleagues and I hope to carry on your tradition. Thank you.
Thanks very much, Piyush. Now I'll put item four to the meeting as an ordinary resolution that Mr Piyush Gupta, who was appointed after the last annual general meeting, in accordance with Clause 22 .6 of the company's constitution, who retires and being eligible, having offered himself for re-election under Clause 20.7 of the company's constitution and ASX Listing Rule 14.4, be elected as a director of the company. Would you now record your vote? We have on the screen the proxies received. Thank you very much. MTI award to James.
We now move to item five for the approval of an MTI award to the Liberty Group CEO, James Boyle, under the Equity Incentive Plan rules on the terms summarized in the explanatory statement to this notice of meeting. The board, other than Mr Boyle and Mr Sherman Ma, recommend you vote in favor of this resolution. Are there any questions? Being no questions, we'll move to the resolution that approval be given for the purposes of ASX Listing Rule 10.14, and for all other purposes, for the grant to the CEO of the Liberty Group, Mr James Boyle, and/or his nominees, equity securities under the LFG Equity Incentive Plan, and as set out in the explanatory statement to this notice. Can you please record your votes? The proxies recorded are shown on the screen.
Thank you. We now move to item six, which is the approval of MTI award to the Liberty Group Executive Director, Sherman Ma, under the Equity Incentive Plan rules on the terms summarized in the explanatory statement. The director, other than Mr. Ma and Mr. Boyle, recommend that you vote in favor of this resolution. Are there any questions? No. The support of the proxies is shown on the screen. So I'll now put the resolution that approval be given for the purposes of ASX Listing Rule 10.14 and for all other purposes, for the grant to the Executive Director of the Liberty Group, Mr. Sherman Ma, and/or his nominees, equity securities under the LFG Equity Incentive Plan, as set out in the explanatory statement to this notice.
You will record your votes. Thank you. LTI award to James Boyle. We'll now move to item seven, which is the approval of an award to the Liberty Group CEO, James Boyle, under the Equity Incentive Plan rules on the terms summarized in the explanatory statement. The board, other than Mr. Boyle and Mr. Ma, recommend that you vote in favor of this resolution. We'll take a brief moment to allow any questions. If none, thank you. So I'll put the resolution. The proxy votes received before the meeting are displayed on the screen. That approval be given for the purposes of ASX Listing Rule 10.14, and for all other purposes, for the grant to the CEO of Liberty Group, Mr. James Boyle, and/or his nominees, equity securities under the LFG Equity Incentive Plan, and as set out in the explanatory statement to this notice.
If you'll please record your votes. Now, move to the final resolution. We now move to item eight seeks the approval of the LTI award to the Liberty Group Executive Director, Sherman Ma, under the Equity Incentive Rules on the terms summarized in explanatory statement. The board, other than Mr. Ma and Mr. Boyle, recommend that you vote in favor of this resolution. We'll take a brief moment to allow votes, and on the screen, we have the support of the proxy votes.
So I'll put the item eight resolution: that approval be given for the purposes of ASX Listing Rule 10.14, and for all other purposes, for the grant to Mr. Sherman Ma, Executive Director of the Liberty Group, and/or his nominees, equity securities under the LFG Equity Incentive Plan, and as set out in the explanatory statement to this notice. I ask you now record your votes. Then, as I said, we have the proxy votes there. Now, we have considered all the items of business. That concludes the formal business. I'll now see if we've received any general questions from security holders via the online platform.
We've received no question.
Thank you, Matt. On that basis, as there's no other business for the meeting and no other questions, I now declare the meeting closed, subject to the finalization of the poll. Security holders and proxy holders will have five minutes to submit their votes via the online platform. Please note that a countdown timer will appear on top of your page. The votes will be compiled by Link Market Services representatives, and the results of the voting will be released to the ASX platform, on the Liberty Group website as soon as possible. On behalf of the board, I thank you for your participation today and your continued support of the Liberty Group.