Pepper Money (PPM) H1 2025 earnings summary

Executive summary

• Net profit after tax for 1H 2025 was $47.0 million, up 2% year-over-year, with disciplined cost management and stable operating income supporting profitability.

• Total originations reached $4.5 billion, up 38% year-over-year, with mortgage originations up 53% and asset finance originations up 19%.

• Assets under management hit a record $20.1 billion as of June 30, 2025, up 4% year-over-year.

• Special and interim dividends totaling $83.7 million were declared, with a combined annualized yield of 20.9%.

Financial highlights

• Net interest margin (NIM) for H1 2025 was 1.98%, up 6 basis points year-over-year; mortgage NIM declined 9bps, asset finance NIM rose 21bps.

• Total operating income was $185.0 million, down 1% year-over-year; net interest income was $157.3 million, down 8% year-over-year.

• Total expenses decreased by 2% year-over-year to $116.7 million, with a cost-to-income ratio of 51.7%.

• EBITDA was $89.5 million, flat year-over-year; profit before tax and loan loss expense was $109.2 million, up 1%.

• Loan loss expense was $40.9 million, nearly flat year-over-year; provision coverage ratio at 0.79%.

Outlook and guidance

• Management expects a strong finish to 2025 and a fast start to 2026, supported by product innovation, technology investment, and favorable market conditions.

• Application volume at June 2025 was up 30% year-over-year and 10% sequentially.

• Second half OpEx expected to remain steady, with inflationary adjustments and some marketing spend increases.

• Mortgage NIM expected to remain around current levels if prime origination trends continue.

• Prudent provisioning and cautious credit risk management continue amid macroeconomic uncertainty.