Consumer lenders had mixed results as they worked to balance higher funding costs, rising delinquencies and weaker demand in the December half-year, while maintaining profitability. MoneyMe released a trading update this week, with some December half headline numbers. The emphasis was on a stronger credit profile and cost efficiencies. Originations of A$277 million during the half were above levels in the two previous halves but well below the volume of lending the company was doing a couple of years ago. With a focus on customers with higher credit profiles and more secured loans, revenue of $105 million was down 13.2 per cent on the previous corresponding period. Net profit of $6 million was up on $3 million in the June half last year but below $9 million in the December half 2022. Net losses (write-offs as a percentage of receivables, net of recoveries) fell from 5.7 per cent in the June half last year to 4.6 per cent in the latest half. MoneyMe said it was continuing to lift the credit profile of its loan book by targeting higher credit quality borrowers. Harmoney also released a trading update this week, reporting growth in its loan book and revenue but with a lower margin and higher credit losses. Harmoney’s loan book grew from $744 million at the end of June last year to $756 million at the end of December. Revenue of $60 million was up 20 per cent on the previous corresponding period but cash profit fell from $2.3 million to $500,000 year-on-year. Credit losses have risen from 3.1 per cent in the December half 2022 to 4 per cent in the June half last year and 4.2 per cent in the latest half. The company said it had replaced its credit scorecard and was expecting an improvement in the loss rate in the June half. In December, Harmoney refinanced its corporate debt facility, increasing it from $20 million to $30 million (with $22.5 million drawn). It has undrawn warehouse capacity of $247 million. During the half it completed its inaugural New Zealand asset-backed securitisation.