While the most watched ASX financial stocks’ earnings are the big four banks, two of the ASX’s smaller players in the space – BNK Bank (ASX:BBC) and Pepper (ASX:PPM) upped their guidance today.

BNK Bank, which once upon a time was a West Australian credit union known as Gold Fields Money told shareholders it experienced a strong start to FY22.

In FY21, the Bank recorded a $7.1 million net profit, up 44% from the year before and grew its loan book by 75% to nearly $500 million.

Having previously tipped a modest increase to its profit, the company now expects it to be 15-20% higher than the year before. It also expects $34 billion in total settlements, up 42% from its previous guidance of $24 billion.

“We have made a solid start to the current financial year and we remain well placed to leverage our business model to deliver further value over the medium term,” Chairman Don Koch told shareholders.

The company’s shares are up 36% in the past 12 months and rose another 5% today.

BNK (ASX:BBC) share price chart



Pepper Money was the other ASX financials company to up its guidance today.

This company is a non-bank lender that’s been in business since 2000 but has only been ASX listed for six months now.

It uses the calendar year as its financial year and previously tipped a profit of $120.7 million. Today it increased its guidance to $135-$138 million, crediting continued strong growth in originations.

Pepper delivered total originations of $6.7 billion in the 10 months to October 31 – a target it anticipated to reach by the end of the year. Of this, $5.1 billion was in mortgages and $1.6 billion was in asset finance.

“Like the banks and our peers we have seen an intensely competitive environment in mortgages with elevated levels of prepayment across the industry,” said CEO Mario Rehayem.

“Pepper has responded to this challenge by using a combination of increased marketing to drive customer growth, expanding our distribution network with new introducer relationships and selective use of competitive pricing offers to accelerate originations.”

Pepper’s shares have been below water for most of its listed life but shares grew 5.5% today.

Pepper Money (ASX:PPM) share price chart