AUS
NZ
UK
CA
USA
IND
Highlights
- Strong profit growth: Over 350% increase in cash net profit after tax.
- Loan book expansion: Australian market drives growth with 43% higher new loan originations.
- Improved financial metrics: Net interest margin and credit performance show steady progress.
Harmoney Corp (ASX:HMY) has delivered an impressive performance in the first half of the 2025 financial year, supported by the successful rollout of its Stellare 2.0 customer platform. With a robust $783 million loan book, the company reported a cash net profit after tax (NPAT) of $2.3 million, marking an over 350% growth compared to the same period last year. This milestone also extends its streak of six consecutive periods of positive net profit.
The statutory NPAT stood at $2 million, while a cash return on equity (ROE) of 13% sets the company on track to achieve a 20% run rate in the latter half of the financial year.
Australian Market Leads Loan Growth
A key contributor to this growth was the Australian market, where new customer loan originations surged by more than 43% during the period. As a result, loans from Australia now account for 57% of the company’s total loan book. The expansion is expected to continue as the company prepares to introduce Stellare 2.0 in the New Zealand market in the second half of the year.
Harmoney’s overall loan book increased by more than 4%, reaching $783 million, with the Australian segment up by 14%. However, this was partially offset by a 6% decline in the New Zealand loan book. The company remains optimistic about future growth, as economic conditions in New Zealand are expected to improve with the Reserve Bank’s ongoing easing of interest rates.
Strengthened Margins and Credit Performance
During the period, the new business net interest margin (NIM) remained stable at 10%, lifting the overall loan book NIM to 9%, up from 8.8% last year and within the company’s target range of 9% to 10%.
The company’s credit performance continued to strengthen, with incurred credit losses dropping to 3.7% from 4.2% last year, and 90+ day arrears staying low at 0.64%. These improvements contributed to an increase in risk-adjusted income to 5.3%, well within the target range of 5% to 6% and significantly higher than 4.8% recorded in the previous year.
Future Outlook and Growth Expectations
Harmoney’s successful rollout of Stellare 2.0 in Australia, the strength of its loan book, and stable economic conditions have reinforced confidence in continued growth and profitability. For the full 2026 financial year, the company anticipates:
- Cash NPAT exceeding $10 million.
- Cash return on equity surpassing 25%.
This outlook is supported by a warehouse funding capacity of over $900 million, $21 million in unrestricted cash, and $7.5 million in undrawn corporate debt. With these financial and operational strengths, the company remains well-positioned for continued momentum in the coming quarters.
