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Harmoney (ASX:HMY) Investor Hub

harmoney-2024-10-17-hitting-the-right-notes-1q25-trading-update.pdf

Harmoney's (HMY) 1Q25 trading update showed robust performance across key metrics, driven by the implementation of its Stellare® ​​​​​​​2.0 lending platform in the Australian market. Loan book growth, net interest margins (NIM) and credit losses are all tracking in line with, or slightly ahead of, our expectations for FY25. Additionally, HMY's cost-to-income ratio (which fell to 21% in 1Q25 from 24% in FY24) continues to decline faster than anticipated. The outlook for the remainder of FY25 appears positive, underpinned by >+50% growth in Australian new customer loan originations in 1Q25 versus 1Q24. The growth in originations should support an acceleration in loan book growth in 2H25, and ultimately, HMY's target of a 20% cash ROE run rate in 2H25. HMY has total warehouse capacity of over A$900m to facilitate growth, with its loan book currently A$769m. We increase our short-term earnings expectations to reflect marginally improved NIMs and management efficiency. Long-term forecasts are largely unchanged and our blended spot valuation rises +5cps to A$1.29.

Forsyth Barr: Harmoney Hitting the Right Notes — 1Q25 Trading Update 🚀🚀