Any chance of future dividends?, page-22

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PVOZ

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20/07/23

15:50

Post #: 68891731
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Originally posted by danbradster: ↑

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 EquifaxPlenti: 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.

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your assessment makes sense and on the face of it, the difference in NIM should more than compensate for the additional credit risk

Which makes the sp movement even more curious, as both Wisr and Plenti are up between 6% and 9% for the month and MME is down around 12%.

Something does not compute, its as if the market is calling bs on MME's numbers,

why i don't know.

MME Price at posting: 7.1¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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