Harmoney (HMY) H1 2025 earnings summary

Executive summary

• Achieved statutory NPAT of NZD 2 million for H1 2025, reversing a NZD 600,000 loss year-over-year, and cash NPAT of NZD 2.3 million, marking a 350% increase and the sixth consecutive positive half.

• Loan book grew 4% year-over-year to NZD 783 million, with Australian new customer lending up 43% and revenue up 7% to NZD 64 million.

• Cost-to-income ratio improved to 18% from 21%, driven by automation and scale, while credit losses fell to 3.7% from 4.2%.

• Stellare 2.0 platform rollout completed in Australia, supporting significant growth and improved customer conversion; New Zealand rollout expected by end of FY25.

• Loan originations rose 15% to NZD 191.3 million, driven by a 25% increase in new customer originations, especially in Australia.

Financial highlights

• Revenue increased 7% to NZD 64 million, outpacing loan book growth due to higher average lending rates.

• Net interest margin for new lending at 10%, average portfolio NIM at 9% (within 9%-10% target), and risk-adjusted income at 5.3%.

• Cash NPAT rose to NZD 2.3 million from NZD 0.5 million in H1 2024.

• Incurred credit losses decreased to 3.7% from 4.2% year-over-year; risk-adjusted income up 8% to NZD 20.2 million.

• Cost-to-income ratio improved to 18% from 21% year-over-year.

Outlook and guidance

• FY25 cash NPAT guidance of NZD 5 million and 20% cash ROE run-rate in H2 2025; FY26 targets of NZD 10 million+ cash NPAT and 25%+ cash ROE.

• No equity raise planned to support growth through FY26; capital self-sustaining.

• No current plans for dividends or share buybacks; focus remains on reinvesting for growth.

• Stellare 2.0 rollout in New Zealand expected to complete by end of FY25, driving further growth and efficiency.

• Portfolio interest rates expected to rise as older, lower-rate loans pay down.