Harmoney (HMY) Q1 2025 TU earnings summary

Financial performance and targets

• Achieved a strong start to FY2025, tracking toward a 20% cash return on equity run rate for the year.

• Loan book increased over 1% from the previous quarter, reaching NZD 769 million, with Australian loans now making up more than 55% of the total.

• Risk-adjusted income rose to 5.1%, up from 4.6% in the prior period and 4.8% last year.

• Net interest margin rose to 8.9%, with new lending NIM above 10%.

• Credit losses declined to 3.7%.

Operational efficiency and technology

• Cost-to-income ratio improved to 21% for the quarter, down from 24% last year, reflecting operational scalability.

• High automation levels are enabling faster scaling of the loan book and revenue relative to operating costs.

Platform and market expansion

• Stellare 2.0 platform drove over 50% growth in Australian new customer originations during the quarter.

• Focus remains on expanding Stellare 2.0 in Australia, with New Zealand's transition planned for the second half of the year.

• New Zealand originations expected to improve following regulatory changes and Stellare 2.0 launch.