Loan book grows by 6% to $1.2 billion
Non-bank lender MONEYME has reported strong financial performance for the year ending June 30, 2024, marked by growth in loan originations, an improved credit profile, and a positive outlook for the next financial year.
Loan originations for FY24 increased by 23% to $574 million, compared to $466 million in FY23. This growth, particularly in the second half of the year, is expected to continue into FY25.
The company’s loan book also grew by 6% to $1.2 billion, up from $1.1 billion the previous year. This expansion was driven primarily by an increase in secured car loan originations, with secured assets now comprising 55% of the total loan book, compared to 44% in FY23.
Credit quality showed notable improvement. The average Equifax credit score of MONEYME’s borrowers rose to 763, up from 727 the previous year.
Net credit losses decreased to 4.5%, down from 5.8% in FY23, benefiting from the company’s shift towards higher credit quality and secured assets. As a result, loan provisions were reduced to 4.7%, compared to 6.6% in the prior year.
Revenue for the year was $214 million, a 10% decline from $239 million in FY23, attributed to the higher proportion of secured assets. Despite the challenging interest rate environment, MONEYME achieved a net interest margin of 10%, compared to 12% in the previous year.
“We are very pleased with MONEYME’s performance and results in FY24, ending the financial year with a larger and stronger loan book, maintained profits, increased operating leverage, and a positive outlook for FY25,” said Clayton Howes (pictured above), managing director and chief executive of MONEYME.
“Looking ahead, we will continue to execute on our strategy, extending our technology advantage, prioritising higher credit quality and secured assets, expanding our funding program for capital-efficient growth, and deepening our ESG impact. With this, we are confident that we will deliver loan book growth and profitable returns in FY25.”
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