Harmoney (ASX:HMY) books record quarter loan originations - Kalkine Media

April 27, 2022 04:25 PM AEST | By Samta
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Highlights

  • Harmoney shares are gaining attention on solid quarter results.
  • Group loan book increased 13% on QoQ basis at NZ$627 million for the third quarter.
  • The Group reaffirmed its FY22 guidance and expects Group pro-forma loan book greater than NZ$650 million.

Diversified financials firm, Harmoney Corp Limited (ASX:HMY), shared its FY22 third quarter trading update on Wednesday.

Meanwhile, the stock closed 3.100% lower at AU$1.250 per share today.

Investors have been keeping the stock on their radar after the online direct personal lender reported record quarter loan originations.

As per the release, the Group loan book reached NZ$627 million, up 13% quarter on quarter, meanwhile, the Group originations increased 80%; up 24% QoQ. On this note, lets have a look at its Q3FY22 report –

  • The Group witnessed solid 218% jump in its Australian new customer originations that stood at AU$63.8 million; up 58% QoQ.
  • HMY’s loan book further got a boost with Australian loan book increasing 107%; up 29% QoQ to AU$239 million meanwhile Australian originations have materially surpassed NZ originations, reflecting HMY’s 100% consumer-direct model in the larger Australian market.
  • Meanwhile, HMY’s New Zealand loan book grew by only 2%, as it was impacted by changes to consumer credit law imposed in December 2021.
  • Australian existing customer originations annuity building increased to 176% that stood at AU$16. Meanwhile the existing customers generated ~50% of New Zealand originations.
 

22-Mar

21-Dec

21-Mar

QoQ growth

PCP growth

Australia Loan Book (A$m)

239

185

116

29%

107%

New Zealand Loan Book (NZ$m)

370

363

362

2%

2%

Group Loan Book (NZ$m)

627

557

485

13%

29%

Image Source © 2022 Kalkine Media ®

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Additionally, the company maintained a strong credit performance supported by its high-quality loan book, with Group 90+ day arrears at 31 March 2022 of 0.46%, down from 0.53% pcp.

Image source – © Baronoskie | Megapixl.com

As per the company, the key lead indicators of increased account acquisition, new loan originations coupled with net lending margin will likely drive cash profitable growth in FY23.

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Management comments:

Harmoney’s CEO & Managing Director David Stevens said that with HMY’s loan book at NZ$627 million, the business is already Cash NPAT profitable on a proforma basis.

Moreover, the company had its another successful quarter as it continues to expand its business in the Australian and New Zealand markets, he said.

Outlook

After a healthy quarter performance, the company has further reaffirmed its FY22 guidance and expects Group pro-forma loan book greater than NZ$650 million and Group pro-forma revenue of at least NZ$92 million. The company further expects its net lending margin at around 8%, meanwhile the company expects to complete 90% transition to warehouse funding by 30 June 2022.


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