Highlights

  • MONEYME (ASX:MME) expanded its gross Loan book beyond $2 billion in FY26, supported by record originations and increased secured lending exposure.
  • The company improved Credit performance, with lower net credit losses and reduced arrears across its lending portfolio.
  • Second-half FY26 normalised Earnings turned positive as funding costs declined and operational performance improved.
  • MONEYME continues strengthening its funding platform through Warehouse facilities and asset-backed securitisation markets.

MONEYME (ASX:MME) has continued its transformation from a predominantly unsecured consumer lender into a broader digital finance platform, supported by rapid loan book growth, improving credit metrics and a greater focus on secured lending.

The company’s FY26 results highlighted progress across several key areas, including portfolio expansion, funding Diversification and improved risk-adjusted returns. While the Business remained loss-making on a statutory basis for the full year, management highlighted stronger second-half performance as evidence of improving underlying momentum.

FY26 Performance

MONEYME reported gross loans of $2.08 billion at the end of FY26, representing growth of 34% compared with the previous year.

Loan originations also reached a record $1.23 billion during the year, supported by growth across key products including Autopay secured vehicle finance, personal lending, rental bond products and credit card offerings.

The company continued shifting its portfolio towards secured lending, with secured loans representing 59% of the total loan book. This strategy is aimed at improving portfolio quality and reducing exposure to higher-risk unsecured lending.

Statutory net loss after tax improved to $40.1 million in FY26, compared with a $66.6 million loss in FY25.

On a normalised basis, the company reduced its loss to $4.1 million from $15.5 million in the previous year. While the full-year normalised result remained negative, the second half of FY26 delivered positive normalised net profit, representing a key operational milestone.

Credit Improvement

Improved credit performance was one of the major drivers of MONEYME’s FY26 progress.

Net credit losses reduced to 2.4% of the loan book, compared with 3.4% in FY25. The proportion of loans more than 90 days overdue also improved, declining to 0.8% from 1.1%.

The company reported an increase in the average borrower credit profile, with the weighted average Equifax credit score rising to 802 from 790.

These improvements reflect the company’s focus on tighter lending standards, improved risk assessment and a greater proportion of secured lending within the portfolio.

The shift towards asset-backed lending has also supported more stable credit outcomes while maintaining loan growth.

Funding Strength

MONEYME continued strengthening its funding platform during FY26, improving access to Capital Markets and reducing funding pressure.

The company ended the year with $3.0 billion in funding capacity across warehouse facilities, asset-backed securitisation trusts and corporate Debt arrangements.

During FY26, MONEYME completed more than $1.0 billion in public securitisation issuance, including multiple asset-backed securities transactions.

The company also established a dedicated warehouse Facility for its credit card portfolio, supporting further product diversification.

Lower funding costs were another important contributor, with the cost of funds reducing to 3.9% from 7.1% in the previous year.

Although net interest Margin declined to 6.5% due to a greater proportion of secured lending, risk-adjusted net interest margin improved to 2.4% from 1.5%.

Growth Strategy

MONEYME’s growth strategy is increasingly focused on building a diversified digital lending platform.

Autopay has become a major component of the business, providing exposure to secured vehicle finance and supporting portfolio quality improvements.

The company continues developing additional lending products, including personal finance, rental-related products and credit card offerings.

The expansion of funding capacity provides flexibility to support future loan growth while maintaining a focus on credit discipline.

Management’s strategy is centred on balancing portfolio expansion with sustainable profitability rather than pursuing growth at the expense of lending standards.

Key Focus Areas

Investors will continue monitoring whether MONEYME can convert its improving second-half performance into a full year of positive earnings.

The sustainability of loan growth, credit quality trends and funding market access will remain important indicators.

The company’s ability to maintain lower funding costs while expanding its lending portfolio will also influence future margins.

Progress in increasing secured lending exposure and managing credit risk will remain central to the Investment case.

Risks

MONEYME operates in consumer and vehicle finance markets that remain sensitive to economic conditions, employment trends and household financial pressures.

A deterioration in borrower conditions could result in higher arrears and increased credit losses.

The company remains dependent on warehouse facilities and securitisation markets, meaning changes in funding availability or pricing could affect margins.

Rapid loan book growth also creates execution risks, particularly as newer loan vintages have limited performance history through different economic cycles.

Competition from banks and other Fintech lenders may further pressure customer Acquisition costs and lending margins.

Future Outlook

MONEYME enters FY27 with a significantly larger lending platform, improved credit metrics and a stronger funding position.

The company’s second-half FY26 improvement provides a foundation for potential earnings recovery, supported by lower funding costs, disciplined credit management and a greater focus on secured lending.

However, achieving a sustainable return to profitability will depend on maintaining portfolio quality, controlling funding costs and managing growth effectively.

The company’s ability to transform its $2 billion-plus loan book into consistent earnings growth will remain the key measure of progress as it moves through FY27.