SOLVAR LIMITED (SVR)
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09/09/2025

3

Hold

$1.70

-8.36%

Bell Potter notes the Federal Court found some contraventions of responsible lending provisions in the ASIC vs Money3 case, but most ASIC claims were rejected. Money3 was rebranded to Solvar in late 2021.

The broker believes it was not a clean result for the company, but far from a major ASIC victory.

Hearing on penalty, fine, costs etc, is due in October and while the broker acknowledges it carries financial/reputational risk, the tone of judgment suggests limited downside relative to ASIC’s original claims.

Separately, the broker reviewed forecasts, lowering overall funding costs for FY26 to 4.5% over cash from 5.3%. Bad debts and provisions estimates also lifted, and the net outcome is a 9.4% lift to FY26 EPS forecast and a 4.5% rise to FY27.

Hold. Target rises to $1.70 from $1.60.

FORECAST
Bell Potter forecasts a full year FY26 dividend of 14.50 cents and EPS of 17.80 cents.
Bell Potter forecasts a full year FY27 dividend of 14.00 cents and EPS of 17.30 cents.

23/02/2026

1

Buy

$2.00

7.82%

Canaccord Genuity highlights Solvar continues to focus on capital management with1H26 closing gross loan book of $897m down -4% y/y, net interest income of $74.3m, down -9% y/y, and normalised NPAT of $20.0m, up 6% y/y.

Profitability benefited from an NZ$8m sale of the written-off loan book. An interim dividend of 6cps and a 2.5cps special dividend were declared, taking the last 12-month dividends to 19cps, and the buyback saw 11.5% of shares repurchased in recent years.

Management reiterated FY26 guidance for normalised NPAT of $36m, and the broker makes minor forecast revisions to reflect a lower closing book and higher employee costs, positioning for measured earnings growth into FY27.

Canaccord Genuity retains a Buy rating and $2.00 target price.

FORECAST
Canaccord Genuity forecasts a full year FY26 dividend of 19.00 cents and EPS of 19.00 cents.
Canaccord Genuity forecasts a full year FY27 dividend of 14.00 cents and EPS of 19.00 cents.