Harmoney (HMY) H1 2025 earnings summary

Executive summary

• Statutory NPAT reached $2.0m (NZD 2 million) in 1H25, reversing a $0.6m loss year-over-year, with cash NPAT up 350% to $2.3m, marking the sixth consecutive positive half.

• Loan book grew 4% to $783m, with Australian new customer lending up 43% and the Australian portfolio now 57% of the total.

• Revenue increased 7% to $64m, outpacing loan book growth due to higher average lending rates and improved cost efficiency.

• Cost to income ratio improved to 18% from 21% year-over-year, reflecting automation and operational scalability.

• Stellare® 2.0 platform rollout completed in Australia, driving growth and improved customer conversion; New Zealand rollout expected by end of FY25.

Financial highlights

• Net interest margin (NIM) for new lending at 10%, average portfolio NIM at 9%, within the 9%-10% target.

• Risk-adjusted income improved to 5.3%, up 30bps year-over-year.

• Credit losses reduced to 3.7% from 4.2% year-over-year; incurred credit losses decreased 9% to $14.2m.

• Cash operating costs reduced by 9% year-over-year.

• Net tangible assets per share declined to $0.14 from $0.21 year-over-year.

Outlook and guidance

• FY25 cash NPAT guidance of $5m, up from $700,000 in FY24; FY26 target of $10m+ cash NPAT and cash ROE above 25%.

• Targeting a 20% cash ROE run rate in 2H25, up from 13% in 1H25.

• No equity raise planned through FY26; capital is self-sustaining.

• No current plans for dividends or share buybacks; focus remains on reinvesting for growth.

• Stellare® 2.0 rollout in New Zealand expected to boost originations and efficiency.