MONEYME returns to growth with originations up 25%

MONEYME grows Q4 2024 originations by 25% over the previous quarter to $165m
Loan book rises 6% to $1.22bn with secured asset ratio rising from 51% to 55%
Increased credit quality results have seen net credit losses drop from 4.8% in Q3 to 4.5% in Q4

Special Report: MONEYME has ended FY2024 on a high note with the Q4 delivering growth and strong loan performance, highlighting its ability to navigate the high-interest rate environment.

After a Q3 focused on improving its loan book quality, refining funding structures, and enhancing its technology platform, MONEYME’s (ASX:MME) increased loan originations by 25% in Q4 to $165m.

The loan-book balance for the quarter rose 6% on Q3 to $1.22bn with an increased ratio of secured assets, which now stands at 55% from 51% in Q3.

Gross revenue for Q4 climbed 1% to $54m, though this is still down 5% on the previous corresponding quarter, reflecting MME’s shift to higher credit quality and secured assets.

The B Corp certified fintech lender offers digital car loans, personal loans and credit cards that settle in minutes.

“We are pleased to present our fourth quarter results, which finished the year strongly and marks our return to growth as we head into FY25,” managing director Clayton Howes said.

“It was great to see another quarter of high customer satisfaction and a net promoter score (NPS) of 69, as we continued to enhance customer experiences.

“During the quarter, we launched our new mobile app and several key technology updates, including enhancing our credit decisioning with advanced analytics to optimise pricing and provide further confidence as we resume growth.”

He added that MME’s first ABS transaction for FY25, saw strong investor engagement and that the company will continue to leverage domestic and international debt capital markets for price advantages. The $178m ABS deal was priced favourably for MME due to the excess demand, and added further capacity for growth for the fintech.

“With strong fundamentals, MONEYME’s business settings are now in place to deliver sustainable and profitable growth in the year ahead,” Howes noted.

Focus on credit quality paying off

Further highlighting the benefits of increasing the credit quality of its loan book, MME noted that net credit losses had fallen to 4.5% from 4.8% in the previous quarter.

It also allowed for a drop in provisions from 5.5% to 4.7%.

“We continue to see the benefits of the credit quality of our loan book, with net credit losses reducing to 4.5%, down from 4.8% in the prior quarter and 5.8% in 4Q23,” Howes said.

“The average credit score now sits at 763 and secured assets at 55% of the loan book, while NIM remained strong at 10%.”

FY2025 outlook

MME expects to continue growing its loan book in FY25 while maintaining profitability, benefiting from scale advantages and technology efficiencies.

It will also continue to focus on high-credit quality and secured assets as it leverages the strong demand for its secured car loan product, Autopay. MME increased its offer for Autopay loans to $150,000 during the quarter, allowing the lender to tap into a new high quality customer segment.

The company is currently beta testing an internal tool leveraging generative AI to enhance the speed and accuracy of customer service interactions with automated email responses. This system is scheduled to launch in 1H25.

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.