Full Year 2024 Harmoney Corp Ltd Earnings Call Transcript
Key Points
- Harmoney Corp Ltd (ASX:HMY) launched its new platform, STELLAR 2.0, which became fully operational in Australia in July 2024, leading to a 50% growth in loan originations compared to July 2023.
- The company achieved its fifth consecutive half of positive cash impact and loan book growth despite higher interest rates.
- Net interest margin for the final quarter of FY 24 was over 10%, indicating strong profitability potential as higher margins spread through the loan portfolio.
- Acquisition costs were down 14% year-on-year, driven by efficiency gains from automation.
- The company successfully completed New Zealand's first-ever unsecured personal loan ABS and added a new warehouse, extending three existing facilities, creating growth capacity of $181 million.
- The statutory loss for the year increased to $13.2 million, including a one-off $9.5 million non-cash impairment expense on the retirement of the STELLAR 1 platform.
- Risk-adjusted income contracted by 120 basis points to 4.8%, driven by reduced net interest income and slightly higher incurred credit loss rates.
- Higher market interest rates constrained loan book growth to 2% for the year.
- The average funding rate increased by 170 basis points to 7.7%, driven by funding market increases and higher leverage within some facilities.
- The company's New Zealand segment showed a negative cash impact, primarily due to the bulk of operating costs being based there.
Hello, and welcome to Harmony's full year 24 results presentation on David Stevens, the CEO and Managing Director of Harmony. With me today is Simon Ward, our Chief Financial Officer. I've been looking forward to presenting today's results for the last 18 months as we have some very exciting news to share with respect to our number one strategic priority that being our new platform, stellar 2.0, which became fully operational in Australia in July 2024.
Now turning to Slide 2. Today, I'll begin with reminding you of Harmony's key differentiators I'll then take you through our key highlights of FY 24 and the exciting results of STELLAR 3.0. I'll then hand over to Simon, who will take you through our financial results. And finally, I will discuss our outlook before responding to your questions. You can submit a question on the webcast at any time during the presentation by typing it into the Ask a Question box and then hitting submit. We'll then endeavor to respond to your questions during the Q&A at the end.
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