Here are a couple of excerpts from the MME Chairman and CEO...

Here are a couple of excerpts from the MME Chairman and CEO addresses today that I found reassuring:

FROM THE CHAIR’S ADDRESS
MONEYME was extremely pleased to report a record statutory profit of $12 million in FY23, reflecting a compound annual growth rate of 148% from FY19, and a record cash profit of $24 million, reflecting a compound annual growth rate of 46% from FY19 and up 19% from the previous financial year.

This result was achieved through a deliberate decision to slow growth during FY23 to focus on enhanced credit risk management, cash conservation, and optimising our operations for further cost efficiencies.

The $12 million statutory NPAT reflects an additional management provision overlay of circa $6 million, reflecting prudent consideration of ongoing macroeconomic uncertainty.

This increased our FY23 provisioning rate from 6.1% to 6.6%, with the aim to safeguard against any unexpected impacts that have not already been reflected in the Group’s base and macroeconomic models.

It’s important to note that our successful shift from high growth to profit in FY23 was achieved against a backdrop of rising interest rates, heightened inflation, geopolitical uncertainties, and reduced access to capital markets.

This has, arguably, been the hardest year to navigate since MONEYME’s inception, with large external market shocks and macroeconomic uncertainties.

The Reserve Bank of Australia lifted the cash rate ten times during FY23, from 0.85% at the beginning of the financial year to 4.10% at year-end.

The market sentiment for the non-bank sector was severely 4 impacted by policy makers’ public concerns regarding fighting inflation and the future trajectory of interest rates, and at times the capital markets were effectively closed.


FROM THE CEO’S ADDRESS

I will now cover the rest of the key highlights for the first quarter, reflecting great progress on our FY24 strategy.

Revenue continued to be strong, driven by a stable loan book, whilst we maintained a healthy net interest rate margin of 11% for the quarter.

As mentioned earlier, credit losses reduced in line with our focus on elevating the credit profile of our book.

Net credit losses were less than 4.9% in the first quarter, down from 5.6% in the previous quarter. We 8 maintained our strong book profile, with an average Equifax credit score of 733 and 46% secured assets at the end of the first quarter.

…….

The outlook - MONEYME expects to deliver positive statutory and cash NPAT results for the first half and full year FY24.



So obviously Clayton didn't say how much NPAT that MME was making, but at least they still expect to be Statutory & Cash NPAT positive for this first half of the year - and also for the full 23/24 year.

And interesting that they "overlaid" an additional $6m in provisioning for 22/23 - so the provisions might actually have been oversated a little last year (at 6.6%).