Home loan originations up 89%, profit rises 31% to $130.7m
Pepper Money has announced strong results for the last calendar year with net profits up 31% to $130.7m for the year ended 31 December 2021.
Adjusting for IPO and related items, pro-forma NPAT was up 34% to $141.9m.
Much of the growth has come from the home loan market, with record loan originations of $6.4bn, an increase of 89%.
Mortgage assets under management was up 15% to $12.3bn, delivering 2.6 times system growth in the second half of calendar year 2021.
Asset Finance AUM grew by 33% to $3.5bn, which was above system growth of 8.2 times in the second half of 2021.
“We believe this makes Pepper Money the largest non-bank asset finance lender in Australia,” said Pepper Money CEO Mario Rehayem.
Commenting on Pepper Money’s first full-year results since listing on the ASX in May 2021 Rehayem said the strength of its CY2021 financial results “is testament to our ability to deliver on our strategy”.
“Our ongoing focus on supporting underserved customers, leveraging our purpose-built technology platform and digital tools to deliver a better experience for our partners and customers and our diverse sources of funding, have enabled us to grow at a faster rate than the market.
“We have maintained our disciplined and prudent approach to credit risk management utilising our data analytics capabilities.
“In mortgages, despite an intensely competitive market environment and high levels of refinancing, we achieved record originations of $6.4 billion. Our prime originations grew by 85% to $3.7 billion while in non-conforming we grew originations by 96%.”
Rehayem said loan originations in Pepper Money’s asset finance business grew by 70%, with commercial originations rising 86% and consumer 55% compared to CY2020.
“Notably, Pepper Money financed 11% of all electric vehicles sold in Australia in CY2021 via our EV lending program – making us the largest electronic vehicle lender in the country”.
MPA will provide more detail on Pepper Money’s results in an in-depth interview with Mario Rehayem to appear on 25 February
