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Harmoney Corp Limited (NZX: HMY) Delivers Record September Quarter

Thursday 14th October 2021

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Harmoney Corp Limited (ASX/NZX: HMY ; “Harmoney” or “the Company”) is pleased to provide an update on its performance for the quarter ended 30 September 2021 (Q1 FY22).

Key Q1 FY22 highlights:

* Largest quarter of new originations in the Company’s history

* Australian new customer originations grow to A$31 million, up 885% versus pcp and up 17% on Q4 FY21

* Group proforma loan book reaches $517 million, yielding a net interest margin of >11% and net lending margin of >7%

* Australian receivables book grows to A$155 million, up 58% on pcp and up 15% on Q4 FY21

* Improvement in key lead indicators of account acquisition, new loan originations and net lending margin set to drive increases in receivables and revenue growth in current and future financial years through Harmoney’s 3Rs consumer-direct model

* Significant improvement in credit performance with 90+ days arrears at 47 basis points (June 21: 69 bps)

* Achieved breakeven on proforma Cash NPAT on existing loan book demonstrating value from automation and scalability of Harmoney’s 100% consumer-direct model

Commenting on another record quarter, David Stevens, Harmoney’s CEO & Managing Director said: “Harmoney continues to deliver on its growth strategy with another outstanding quarter despite COVID lockdowns in Australia and New Zealand. Harmoney Australia’s loan book is growing at 60% annualised and 15% quarter on quarter, all while delivering an enviable net lending margin of more than 7%.

“Harmoney’s Group loan book, at just over half a billion dollars, is already Cash NPAT breakeven on a proforma basis. The Company’s 100% consumer-direct model and innovative Libra™ lending platform enables over two thirds of loan applications to be completely automated, providing significant operational leverage and driving profitability as our income grows noticeably faster than our cost base.

“Our team, composed largely of data scientists and engineers, continually impress me with their drive to deliver on our purpose of helping more Aussies and Kiwis achieve their life goals through financial products that are friendly, fair and simple to use. Harmoney’s consumer-direct marketing technology is world class and generates approximately 10,000 new customer accounts per month across Australia and New Zealand. This significant consistent level of new customer demand enables our team to be solely focused on developing lending and product enhancements that will broaden our ability to provide financial products to more Aussies and Kiwis with no additional customer acquisition cost.”


* Group pro-forma loan book of at least $600 million (20%+ growth on FY21)

* Group pro-forma revenue of at least $92 million (16%+ growth on FY21)

* Net lending margin of at least 7% (0.2%+ growth on FY21)

* Indirect opex to income ratio of <20% (2%+ reduction on FY21)

* Transition to warehouse funding expected to be ~90% complete by 30 June 2022, (71% at 30 September 2021, 61% at 30 June 21)

The above market guidance assumes COVID-19 lockdown restrictions in Australia and New Zealand do not have a material impact on originations or customer repayments.

Please see the link below for details

HMY delivers record September quarter

Source: Harmoney Corp Limited

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