Harmoney Continues to Deliver Cash NPAT Profitability, Book Growth and Efficiency Improvements

Harmoney Corp Limited reported a Cash NPAT profitability of $0.5 million for the first half of the fiscal year 2024.
The company experienced an 8% growth in its loan book, reaching $756 million.
Revenue increased by 21% compared to the previous corresponding period, totaling $60 million.
Customer acquisition costs as a percentage of income decreased to 9% from 13%.
The cost to income ratio improved to 24% from 29%.
Harmoney launched Stellare 2.0, enhancing efficiency and customer experience in Australia.
The company refinanced and upsized its corporate debt, with a current limit of $30 million and $7.5 million undrawn.
Warehouse capacity was extended, with approximately $250 million undrawn, and a $200 million ABS program was established in New Zealand.
Harmoney targets a 20% Cash Return on Equity run rate by FY25.
The company has reported positive Cash NPAT for the fourth consecutive half-year.
Harmoney's loan portfolio remains high quality, with 74% of customers employed in professional, office, or trades roles, and 87% aged over 30.
The company has significant growth capacity, supported by three of the "Big Four" Australian banks, with unused warehouse capacity of ~$250 million, corporate debt capacity of $7.5 million, and unrestricted cash of $20.6 million.
The Net Interest Margin (NIM) was reported at 9.2%, within the company's target range.
Harmoney's business model and Stellare® platform underpin its efficiency, risk selection, and financial performance.
The company continues to focus on loan book growth, maintaining a net interest margin of 9%, and achieving a 20% Cash ROE run rate by FY25

This announcement is a summary of the company approved ASX announcement on 23/2/2024.