ASX-listed fintech lender MONEYME continues to deliver statutory profits

ASX-listed fintech lender MONEYME continues to deliver statutory profits

ASX-listed fintech lender MONEYME have provided its half-year trading update for the period ending 31 December 2023.

Trading highlights for the period included sustainable profits from a robust loan book with Net Profit After Tax (NPAT) of $6 million for 1H24 reflecting tech-driven cost efficiencies, strong credit performance and effective interest rate management.

Gross revenue of$105 million was reduced in line with MONEYME’s moderated growth strategy and lift in higher credit quality and secured assets.

Originations of $277 million for 1H24 reflected growth in target segments while MONEYME’s loan book balance sits at $1.2 billion with an increased ratio of secured assets.

MONEYME’s Managing Director and CEO Clayton Howes said, “MONEYME delivered a solid first half result with $6m in NPAT, reflecting our technology advantage delivering cost efficiencies, strong credit performance, and effective interest rate management. We increased originations in the half, maintaining our book balance relatively stable, while continuing the shift to high credit quality assets.

“The stronger credit profile of the book delivered a net loss rate of 4.6% for 1H24, a further reduction from 2H23 and 1H23. Our loan book now has an average Equifax credit score of 741 and 48% is secured vehicle loans, both up on the prior periods. The strength of our loan book portfolio has also been recognised by two recent Moody’s credit rating upgrades of our term securitisations.

“MONEYME continues to execute its key strategies, which include extending our technology advantage through product innovation, automation and expanded AI capabilities, as well as cost management and effective cybersecurity defences. Our current strategy and agility to navigate the macroeconomic environment position us well to deliver increased scale and returns as conditions evolve.”

Disclosure: At the time of writing, Australian FinTech Pty Ltd is a shareholder of MONEYME Limited.