MoneyMe CEO Clayton Howes
Consumer lender MoneyMe stuck with its focus on higher quality borrowers and secured finance during the December half, helping it reduce credit losses. It has no plans to change that approach.
MoneyMe originated A$277 million of loans during the half – up from $242 million in the previous corresponding period but well down on peak originations of $441 million in the December half 2021.
The loan book ran off a little from $1.2 billion in the December half 2022 to $1.15 billion in the latest half.
Net revenue was down 13.5 per cent year-on-year to $103.1 million and net profit was down 29.8 per cent to $6.2 million.
Gross customer receivables of $37.5 million were written off during the half. Net of delinquent asset sales and recoveries, the credit loss fell from 5.7 per cent of receivables in the June half last year to 4.6 per cent in the latest half.
Over the past year, borrowers’ average Equifax credit score increased from 714 to 741, and the proportion of secured assets on the books increased from 41 per cent to 48 per cent.
Increased credit quality, along with higher funding costs, resulted in a decline in the net interest margin from 12 per cent to 10 per cent (gross revenue less interest expense as a proportion of average gross customer receivables).
MoneyMe chief executive Clayton Howes said the company would maintain its focus on improving credit quality and stick to its core offerings of personal and auto loans, and cards.