We are pleased to share our first quarter FY27 investor presentation, which confirms strong momentum across the business and reaffirms our full-year Cash NPAT guidance of $16 million or more.
Our loan book reached $912 million as at the end of 1Q27, up 9% on the prior comparable period, with growth across both Australia (up 14%) and New Zealand (up 11%). Importantly, our key credit and margin metrics remain stable — net interest margin held at 10.3%, credit losses at 3.8%, and our risk adjusted margin at 6.5% — while 90-day arrears improved by 13 basis points and our cost-to-income ratio improved to 18%.
A significant milestone this quarter was the launch of our intermediary channel in Australia, which originated $7 million in its first two months with two partners live and more expected to join through 2Q27. This channel targets the $20 billion Australian car lending market and represents a meaningful growth opportunity, with a pipeline we estimate could exceed $100 million in annual funded volume by FY28.
Our Stellare 2.0 platform and flywheel business model continue to drive compounding economics, with returning customers borrowing on average 1.5 times more at near-zero acquisition cost. The vehicle loan book is up 22% on the prior comparable period.
We welcome any questions you may have about this update.
1Q27 Trading Update
Harmoney has delivered a strong start to FY27, and we are pleased to reaffirm our Cash NPAT guidance of $16 million or more for the full year, representing at least 18% growth on FY26.
The standout development this quarter has been the rapid growth of our new intermediary channel. Launched in Australia in August 2026, our first two Australian partners originated $7.0 million in loans in under two months. We now have four partners live across Australia and New Zealand, with more set to join in the coming quarter. This channel operates on the same Stellare® platform as our direct business, adding only marginal overhead while opening access to a substantial Australian car lending market estimated at around $20 billion per year.
Group loan originations grew to $122 million, with September 2026 being our highest ever month of originations in local currency. The group loan book expanded 9% to $912 million, with the Australian book up 14% and New Zealand up 11% in local currency.
Our core financial metrics remain solid: net interest margin held steady at 10.3%, credit losses were stable at 3.8%, and 90-plus day arrears improved to 0.64%. Our cost to income ratio improved a further 100 basis points to 18%, reflecting the ongoing operating leverage delivered by Stellare's automation. With over $1 billion in warehouse capacity, we are well funded to continue growing.
We welcome any questions you may have about this announcement — please feel free to submit them through the Investor Hub.
