• MoneyMe reports record gross revenue of $239 million for FY23 up 67% from FY22
  • Company says it amplified operating leverage by realising scale and technology in FY23
  • MoneyMe becomes one of few ASX listed financial companies to attain B Corp certification

 

Strong returns, high operating leverage, innovation, a successful capital restructure, elevated credit quality, and meeting B Corp standards have culminated in MoneyMe’s excellent FY23 results.

Fintech MoneyMe (ASX:MME) has reported record gross revenue of $239 million for FY23, up 67% from $143 million in FY22 with statutory NPAT of $12 million and $24 million cash NPAT for FY23.

 

Source: NPAT

 

Other highlights of MME FY23 results include:

  • Loan book provision of 6.6% up from 6.1% in FY22 after prudent approach
  • Net interest margin (NIM) maintained at 12%
  • Increased cost efficiency by 45%, lowering office operating costs to income ratio to 22% (from 40% in FY22)
  • ~$20m p.a. operational cost savings through SocietyOne acquisition synergies
  • Increased average customer Equifax profile to 727 (FY22: 704)
  • Raised equity capital through institutional placements and a share purchase plan
  • Paid down corporate debt facility principal to $50m from $75m, significantly reducing ongoing interest costs
  • Completed term securitisation transaction for $150m in SocietyOne PL 2023-1.

 

Transition from high growth to profit

MME managing director and CEO Clayton Howes says amid the rising interest rate environment, the company effectively protected its Net Interest Margin and elevated the credit profile of the loan book to mitigate evolving credit risk.

Howes says the company took a prudent approach to loan book provisioning with additional management overlay to safeguard against potential impacts from the uncertain macroeconomic environment.

“MoneyMe’s strong FY23 performance marks our successful transition from high growth to profit delivery,” Howes says.

“We delivered a statutory NPAT of $12 million and a robust cash profit of $24 million, with gross revenue reaching a record $239 million, a 67% increase from FY22.”

He says by recognising the importance of standing by customers during trying times, MME also improved its financial hardship processes.

“In FY23, we amplified our operating leverage by realising scale and technology benefits and continued to enhance our offering through new product launches and increased automation,” he says.

He says MME’s commitment to its customer-centric innovation remains the driving force behind its high customer engagement and satisfaction.

 

MME achieves B Corp Certification

After applying for B Corp Certification in August 2022, MME got the green light this month making it one of five ASX-listed financial services companies (and one of only 10 ASX-listed companies in total) to attain the certification.

MME became B Corp Certified after a 12-month evaluation and verification process, notably achieving a certified B Impact AssessmentTM (BIA) score of 91.2 – well above the 80-point certification threshold.

Howes says the B Corp Certification is a testament to its significant environmental, social, and governance (ESG) strides in FY23.

 

Expanding AI capabilities in FY24

In FY24, MME aims to leverage its technological advantage through emphasis on product innovation, improved automation, and expansion of AI capabilities.

The company will continue its commitment to develop a portfolio with strong credit quality, elevate the percentage of secured assets, and use its existing size and cost-effectiveness to attain growth that is both profitable and sustainable.

“Our transition to sustainable profitability, fuelled by scale, tech-led efficiencies and streamlined operations, provides a solid foundation for continued profitable returns in FY24 and beyond,” he says.

MME says it will be able to maximise the benefits of its scale advantages as soon as the macroeconomic conditions become favourable.

“Looking ahead, we will focus on readying the business for growth when the market conditions are suitable through extending our technology advantage, further improving the credit profile of our portfolio, simplifying and focusing the business by removing non-core products, and strengthening our information security and data protection.”

 

This article was developed in collaboration with MoneyMe, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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