The financial sector has been a difficult place to be for investors on Thursday.
A number of ASX financial shares have tumbled deep into the red following the release of their respective results.
Here's a summary of what is happening today:
Humm Group Ltd (ASX: HUM)
The Humm share price is down 8% to 45 cents. This morning, this ASX financial share revealed a 53% decline in cash net profit after tax to $24.1 million. This was driven by a poor performance from its consumer finance business, which went from a cash profit of $22.4 million in FY 2022 to a $10.9 million loss this financial year. This offset profit growth in the commercial finance business and overshadowed the announcement of a $10 million share buyback. A fully franked dividend of 1 cents per share was declared, bringing its FY 2023 dividend to 2 cents per share.
Insignia Financial Ltd (ASX: IFL)
The Insignia share price is down almost 11% to $2.60. This follows the release of the ASX financial share's full-year results. Insignia, previously known as IOOF, reported a 15% decline in underlying net profit after tax to $191 million. Management advised that its profits were impacted by lower average funds under management and administration and strategic repricing decisions. A final dividend of 9.3 cents was declared, which is down 21% from the prior corresponding period.
Judo Capital Holdings Ltd (ASX: JDO)
The Judo Capital share price has fallen 17% to $1.05. Investors have been selling this small business lender's shares despite it posting a sevenfold increase in FY 2023 profit before tax to $107.5 million. Also failing to appease the market was a 74 basis points increase in the ASX financial share's underlying net interest margin to 3.53%. In response to the result, Goldman Sachs commented: "We note that JDO's FY23 pre-tax profit came in at A$107.5 mn which was 0.7% higher than GSe but -2.6% lower than company compiled consensus (CCC) estimates." Concerns over margin headwinds and asset quality deterioration may also be weighing on its shares.
