Digital lending outfit MoneyMe released its fourth quarter trading update, showing a return to growth for its loan book, although gross revenue remained steady at A$54 million (up by $1m on 3Q24, and down by $2m compared to 4Q23). 

This gives a projected annual gross revenue of $214 million, although final results – including net profit for the 2023-24 year – are not due to be unveiled for another four weeks.

Clayton Howes, MoneyMe's managing director and CEO, said his company's loan originations grew to $165 million in the quarter (an increase of 25 per cent on 3Q24), increasing the loan book to $1.22 billion. 

"We continue to see the benefits of the credit quality of our loan book, with net credit losses reducing to 4.5 per cent, down from 4.8 per cent in the prior quarter and 5.8 per cent in 4Q23," he said in a statement released to the ASX.

MoneyMe's net interest margin remained at 10 per cent in 4Q24, unchanged from the previous quarter, and down from 12 per cent recorded in 3Q24. Howes said NIM "was moving in line with MoneyMe’s shift to higher credit quality assets and secured loans to reduce credit risk and lower loss rates." 

The ratio of secured assets increased to 55 per cent in 4Q24, up from 51 per cent in 3Q24 and 44 per cent in 4Q23.

MoneyMe executed its first asset-backed securitisation for FY25 in July 2024. Further term deals are anticipated to conclude during FY25.