Pepper Money has released its first financial report since listing on the ASX in May, with a record number of loan originations the highlight of the six months to June.

Pepper reported net profit from continuing operations of A$56 million for the six months to June – a 41 per cent increase over the previous corresponding period.

Net interest income rose 1.9 per cent to $176.2 million. The net interest margin rose 3 basis points to 2.59 per cent – largely a reflection of the strong growth in the asset finance book.

Loan originations of $3.7 billion during the half were up 40.4 per cent on the previous corresponding period. Mortgage originations grew 33.9 per cent and asset finance originations grew 65.8 per cent.

The number of originations hit 27,000 and increase of 34 per cent over the previous corresponding period.

The loan book grew 5.2 per cent to $14.3 billion.

Loan loss expenses fell from $43.2 million in the June half last year to $14.1 million in the latest half. The company said strong credit performance allowed it to release $5 million in asset finance provisions.

The loan loss represented 28 basis points of loans under management.

A June 30, the company maintained a COVID overlay of $18 million.

Pepper chief executive Mario Rehayem said the company was well positioned to fund future growth, after completing two securitisation transactions worth a total of $1.5 billion during the half and increasing its warehouse capacity by $700 million.