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Harmoney Corp Limited (NZX: HMY) H1 FY21 Business Update

Wednesday 20th January 2021

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Harmoney Corp Limited, Australasia’s largest online direct personal lender, advises that it has exceeded its loan origination forecasts for the six months to 31 December 2020 (on an unaudited basis), delivering total loan originations of NZ$194m for the period, 2% ahead of Prospectus forecasts.

Commenting on the update, CEO and Managing Director, David Stevens, said:

“We are really excited with our loan origination momentum in the quarter ended 31 December 2020 (Q2 FY21). Our recent quarterly performance reflects a significant return to pre-COVID lending volumes, with 47% growth experienced in the December quarter across the Australian and New Zealand markets. This is a volume recovery which we expect to sustain into the second half, as consumers demand more agile, flexible and convenient online borrowing experiences.

Our strategy to limit new loan originations during the COVID-19 impacted period meant our loan growth slowed year-on-year. However, in line with the wider economic recovery, we have adjusted credit settings and ramped up marketing activity with a focus on attracting a strong pipeline of high quality borrowers in Australia and New Zealand. Our technology-based Stellare™ platform is delivering more aggressive growth in FY21, and is supported by the recent addition of our third warehouse facility.”

Operational update

In Q2 FY21, Harmoney’s New Zealand loan originations were 44% higher at NZ$89m, versus NZ$62m in Q1 FY21. In Australia, a market which Harmoney entered in 2017, loan origination increased by 69% to NZ$27m in Q2 FY21 versus NZ$16m in Q1 FY21.

Harmoney has now originated over NZ$1.9 billion in personal loans, serving more than 48,000 customers across New Zealand and Australia with a total current loan book of approximately NZ$469m as at 31 December 2020.

Harmoney’s loan portfolio continued to demonstrate strong credit performance with Group 61+ day arrears declining to 1.3% down from 1.6% as at 30 June 2020. 90+ day arrears also further declining to 0.58% down from 0.98% as at 30 June 2020.

Harmoney will update the market further with its audited H1 FY21 results for the half year ending 31 December 2020, scheduled for release on Wednesday 24 February 2021.

See the link below for more details:

Harmoney exceeds loan origination prospectus forecasts

Source: Harmoney Corp Limited

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