Transparency is very important. There is very little historical data to predict what may or may not happen with a pandemic so we thought it was prudent to be granular and transparent about our data.

This has been well received by investors, particularly offshore – the same level of transparency in their respective markets has been less than forthcoming. We will continue to provide this data on the first of every month until we see the end of COVID-19.

We peaked at 5.7 per cent hardship in mid-June and it has been slowly, but steadily, correcting since then. It is now down to 4.6 per cent. All states are improving apart from Victoria – and even Victoria is not doing too badly.

This tells us the book is in good shape, which is perhaps a barometer for the wider economy – although likely benefiting from government stimulus. It is hard to say what will happen next year but the dire expectations of a house-price crash and high unemployment are unlikely to transpire.

The steady drop in outstanding hardship assistance is a good sign especially as borrowers are aware government assistance is coming to an end. This said, a core of borrowers is likely to have problems. We separate borrowers who have arrangements with us from those in hardship, with the former making some type of repayment while the latter does not. Our best estimate at this stage is that perhaps 2.5 per cent of the wider portfolio may have issues getting back on track.

Very significantly. It is not so much the pricing as the A$4,000 (US$2,914) cashbacks that are blinding customers. They are receiving a honeymoon rate that the banks will reset to their high standard variable rates.

It is very difficult to retain customers when they are being offered these inducements. It is affecting our new originations and, just as importantly, our back books and conditional prepayment rate (CPR) levels. In fact, for the past four months our balance sheet has been going backwards.

We are focused on improving our retention practices. We were having some success with this in August, when we brought our CPR rate down, but it seems to be spiking again in September. We are looking at various ways to address it.

We had approval from the federal treasurer to acquire 100 per cent of an ADI in 2017. We pursued this strategy but, in 2019, the Australian Prudential Regulation Authority changed its approach to ADI entrants so the proposition was quite different. We are now capped at 20 per cent ownership or more of an alliance model.

This is something we are considering but it is quite a different proposition from what was originally approved. It is ongoing as a potential strategy, but our objectives remain the same: to achieve consistent, diversified funding through the cycles.

Yes. We have been originating car loans through our retail brand and brokers for four years. Our portfolio is now A$250 million and still has some growth to achieve.

Both these businesses fit well into our existing operation, especially when it comes to referrals. The combination of these businesses will work very well for us. We are putting a lot of strategic effort into car-loan origination and will look at further acquisitions going forward should the opportunity arise.

I expect to see Firstmac issuing auto asset-backed securities in the future, potentially in the next calendar year.