MoneyMe reports robust interim financial results for 2nd half of 2023

Company achieves significant rise in net profit

MoneyMe reports robust interim financial results for 2nd half of 2023


By Jonalyn Cueto

MoneyMe Limited, a digital lender, has announced its financial results for the first half of the fiscal year 2024, showcasing substantial growth.

MoneyMe reported a surge in statutory net profit after tax (NPAT), reaching $6 million, up from $3 million recorded in the second half of fiscal year 2023.

Despite experiencing a marginal decline of 9% in gross revenue to $108 million compared to the prior reporting period, MoneyMe witnessed a substantial increase in originations, which surged by 23%, totaling $277 million from $224 million in the second half of 2023.

While the net interest margin saw a decline to 10%, reflecting a 14% decrease from 12% in the second half of 2023, secured assets witnessed a notable uptick, comprising 48% of the 1H24 book, up from 44% in the preceding period.

A closer examination of credit profiles and funding revealed positive trends. MoneyMe’s average Equifax score improved to 741 in the first half of the fiscal year 2024, compared to 727 in the second half of 2023. Moreover, the company successfully reduced its net loss rate to 4.6%, marking a 20% decrease from 5.7% in the prior reporting period. However, unrestricted cash witnessed a slight decrease to $15 million from $16 million in the second half of 2023.

Drivers of success

Operational enhancements played a pivotal role in MoneyMe’s success, the company said. The company focused on elevating credit profile, achieving an average Equifax score of 741 and securing 48% of its assets in the first half of the fiscal year 2024. Technological advancements remained at the forefront, with the introduction of generative AI technologies, the launch of Autopay for caravans, and the enhancement of customer onboarding processes through digitization and automation.

Furthermore, MoneyMe’s commitment to customer satisfaction was evident in a Net Promoter Score of +68. Notably, the company achieved Certified B Corporation status with a score of 91.2 on the B Impact Assessment, surpassing the minimum threshold for certification.

Strategically, MoneyMe renewed warehouse financing, extended key partnerships, and streamlined its product portfolio to focus on core offerings, such as car loans, personal loans, and credit cards.

Clayton Howes (pictured), MoneyMe’s managing director and CEO, expressed satisfaction with the company’s performance, attributing it to technology-driven cost efficiencies, strong credit performance, and effective interest rate management.

“MoneyMe continues to execute its key strategies, which include extending our technology advantage through product innovation, automation and expanded AI capabilities, optimising the business for future growth, capitalising on the significant market opportunity to grow our award-winning car loan product, and strengthening our cybersecurity defences,” said Howes. “Our current strategy and proven agility position us well to deliver increased scale and returns as conditions evolve.”

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