Consumer lender Harmoney has released unaudited details of its 2021/22 accounts, saying it expects to report a cash profit when it presents its financial report next month.

Harmoney was launched in New Zealand in 2014 and was listed on the Australian Securities Exchange in November 2020. It is also listed on the New Zealand Stock Exchange.

Its business model is to sell personal loans direct to consumers, originating online using an “automated loan approval system”.

The Australian loan book grew by 113 per cent to A$287 million in the year to June and the New Zealand book grew by 3 per cent to NZ$370 million. Total loan book growth was 37 per cent.

Harmoney chief executive David Stevens said in a statement that the company was attracting 12,000 new customers a month and the Australian loan book would overtake the NZ book in the 2022/23 financial year.

Arrears (loans past due by 90 days or more) fell from 58 basis points in 2020/21 to 45 bps in 2021/22.

The company started life as a peer-to-peer lender but closed the P2P program in April 2020 and is now largely funded through warehouse programs.

It entered the asset-backed securities market last year with a A$105 million issue, which “materially reduced” its cost of funds. Its net interest margin in 2021/22 was 12 per cent, based on personal risk-based pricing.

Stevens said: “In response to rising interest rates this year, in April we passed through a weighted average interest rate increase of more than 100 bps on new lending, with no reduction in demand. In June we delivered our second highest month of originations.”

Around 73 per cent of floating-rate borrowings are hedged and this will dampen the impact of further rate rises over the rest of this year.