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Harmoney Corp Limited (NZX: HMY) 3Q21 Trading Update

Monday 12th April 2021

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Harmoney Corp Limited, Australasia’s largest online direct personal lender, provides a trading update for the third quarter ended 31 March 2021 (Q3 FY21), during which it surpassed the significant milestone of NZ$2bn in total originations. Across the Group, loans to new customers increased 60% to NZ$44.1m in Q3 FY21, up from NZ$27.5m in Q2 FY21. These are new customer loans and do not include loans originated through Harmoney’s 3RsTM model (designed to maximise customer retention through Repeat, Return, Renew offers) which create a multiplier impact in future periods.

Harmoney CEO and Managing Director, David Stevens, commented:

“Australia is our biggest opportunity for growth and our recent performance in the region underscores how quickly our platform business can scale. New loan origination in Australia has doubled since updating the technology behind our new lending scorecard, making the credit underwriting process significantly more efficient at attracting and then converting customer enquiries into settled loans.

Importantly, it does not change Harmoney’s risk appetite for high-quality, prime customers. It actually illuminates the pathway we are on to achieving our business objective of $1 billion in lending volumes each year – just in Australia. We are very confident in our ability to replicate our New Zealand success in this market.

With marketing investment back to pre-COVID levels, we’re confident this growth in new customer acquisition will continue as we meet growing borrower demand for direct, agile and convenient financial services.”

Total loan origination across the Group for Q3 FY21 was NZ$120m, a NZ$4.8m increase on Q2 FY21 volumes. This was achieved against the seasonally higher second quarter, with peak origination months typically in November and December.

In aggregate, Harmoney has originated over NZ$2bn in personal loans and has served more than 50,000 customers across New Zealand and Australia with a total loan book of NZ$485m, of which the Australian book is A$116m (NZ$123m). The average Australian loan size is ~A$25,000, and is ~NZ$25,000 across the Group.

Strong credit performance maintained due to Harmoney’s high-quality loan book, with Group 61+ day arrears at 1.26% and 90+ day arrears at 0.53% as at 31 March 2021 (31 December 2020 1.3% and 0.58% respectively).

Total warehousing capacity of NZ$353m and A$177m puts Harmoney in a strong position to generate growth in both markets while significantly reducing funding costs as the Group transitions to 100% warehouse facilities. As at 31 March 2021, available funding lines were NZ$253m.

Please see the link below for details:

HMY 3Q21 Trading Update

Source: Harmoney Corp Limited

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