Any chance of future dividends?, page-21

Not sure why they're saying MME is the more risky one. MME have also shown that they're increasing the average credit score of the customers.


MME: 718 Equifax
Plenti: 831 Equifax



Wisr: 765 Equifax





Wisr NIM 5%


Plenti NIM 5.2%


MME NIM 13%




Summary:
MME 718 Equifax, 13% NIM
Wisr 765 Equifax, 5% NIM
Plenti 831 Equifax, 5.2% NIM

So MME has the lower average credit score, as the news article says. But MME seems to have a far stronger NIM, which can be used to offset some bad debts, could it not?

From the below quote, statutory profit was $9m for the half. That comes out to about 1.5% PA on the $1.2m loan book. So I guess they have the 13% NIM, and then after removing business expenses and recent levels of bad debts, it falls to 1.5% remaining? So the 1.5% is the leeway, for increases in bad debts (might improve a bit to 2.0% after the PEP interest reduction starts having an impact).

Plenti by comparison seems to have 0.25-1% leeway (depends on how I interpret the article quote). Less than MME. So is Plenti really lower risk? Higher credit scores, but less leeway with margins.