ASX fintech: BNPL play hummgroup (ASX:HUM) turns a profit while BofA ups stake in Zip Co
Shares in hummgroup (ASX:HUM) — which also has a BNPL offering — rose off the back of a business update, in a busy morning for ASX fintech stocks.
HUM’s update this morning showed the company booked transaction volume of $774.9m in the June quarter, up around 57% from June last year.
Based on preliminary data, the company said it expects that to flow through to net profit after tax (NPAT) of $68.4m.
humm (formerly FlexiGroup) said the fact it actually makes a profit is a “key differentiator against many of our competitors”.
It said it plans to reinvest those profits into business growth, which is why the H2 figure is on track to be slightly lower than H1.
The figures are “reflective of hummgroup’s new investments in platforms, marketing, and people as it enters the UK and Canada markets, and includes the release of some of the COVID-19 macro overlay”, the company said.
Shares in hummgroup were up by around 5% in morning trade at just over $1, still down from 2021 highs of around $1.30 in February before a spike in bond yields prompted the first investor rotation out of BNPL stocks.
Of the $774.9m figure, hummgroup derived around $304.9m (~40%) from its BNPL offering. Card services delivered another $287.5m while the company’s leasing division contributed $182.4m.
Elsewhere in the BNPL sector, Zip Co (ASX:Z1P) released a Change in Substantial Shareholder notice which showed Bank of America now has an increased voting share in the business.
BofA and its controlled entities now hold a voting interest of 7.45%, up from 6.15% at the start of April following a series of buy/sell transactions over the past three months.
Moving to consumer finance, shares in lending platform Wisr (ASX:WZR) edged higher in morning trade after the company reported its 20th consecutive quarter of loan growth in Q4.
The company booked new loan originations of $123m in the June quarter, up 27% from the March quarter and bringing total loan originations on the platform to $611m.
Wisr CEO Anthony Nantes called it a “material step-change” in new loan growth, and flagged an additional runway for growth through the addition of the group’s vehicle financing platform.
Elswhere in fintech, shares in consumer finance app Douugh (ASX:DOU) rose by 5.5% to around 10c, after announcing the launch of its financial wellness app on Android through the Google Play store.