What Drove Pepper Money Limited (ASX:PPM) Lending Growth in 1H26?

Sonal Goyal

26 October 2026 06:05 PM AEDT

What Drove Pepper Money Limited (ASX:PPM) Lending Growth in 1H26?

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Highlights

Pepper Money Limited (ASX:PPM) reported new originations of AUD 6.3bn for 1H26, an increase of 40% compared with the prior corresponding period.
Total AUM, including lending and servicing assets, rose to AUD 24.0bn at 30 June 2026, up 20% from June 2025.
The presentation recorded a coverage ratio of 0.79%, unchanged from the prior corresponding period, and a cost-to-income ratio of 49.4%.

Pepper Money Limited (ASX:PPM) operates as a non-bank lender in mortgages and asset finance and also manages servicing portfolios. Its 20 August 2026 interim presentation covers originations, outstanding assets, profitability measures and Credit quality over the first six months of 2026. The company reported new lending volumes separately from existing lending and servicing assets, a distinction that matters when describing the scale of activity.

Originations Rise Across Lending

Pepper Money Limited (ASX:PPM) reported new originations of AUD 6.3bn for 1H26, an increase of 40% compared with the prior corresponding period. Mortgage originations were AUD 4.5bn, up 63%; asset-finance originations were AUD 1.7bn, up 2%. Originations measure new lending rather than the whole book outstanding.

Assets Under Management

Total AUM, including lending and servicing assets, rose to AUD 24.0bn at 30 June 2026, up 20% from June 2025. Mortgage AUM reached AUD 12.5bn, asset-finance AUM was AUD 6.0bn, and servicing AUM was AUD 5.5bn.

Margins and Earnings

The presentation reported pro-forma NPAT of AUD 53.9mn, 15% above 1H25, and pro-forma profit before tax and loan-loss expense of AUD 127.8mn, up 17%. Total net interest Margin was 2.10%, an increase of 12 basis points from the prior corresponding period.

Credit Quality and Operating Costs

The presentation recorded a coverage ratio of 0.79%, unchanged from the prior corresponding period, and a cost-to-income ratio of 49.4%. Its interim ordinary Dividend was 7.2 cents per share, up 12% from the corresponding 2025 interim dividend.

About the Company

Pepper Money Limited (ASX:PPM) is a non-bank lender and Loan servicer, operating in residential mortgages and asset finance. Its reported AUM includes both lending and servicing exposures, so it is distinct from new loan originations.

Risks and Catalysts on Watch

Funding costs, borrower repayment performance, credit-loss coverage, the composition of new originations and the relationship between Volume growth and margins remain relevant to subsequent results. Pro-forma and statutory profit metrics should not be used interchangeably.

Key Takeaways

The 20 August 2026 half-year presentation for Pepper Money Limited (ASX:PPM) documents the specific developments above. The stated figures refer to their respective reporting periods or corporate resolutions. Further company announcements will establish whether subsequent operating or financial measures change from those reported.

FAQs

Q: What did Pepper Money Limited (ASX:PPM) announce?

A: The company released its 20 August 2026 half-year presentation.

Q: Which figures are central to the announcement?

A: Pepper Money Limited (ASX:PPM) reported new originations of AUD 6.3bn for 1H26, an increase of 40% compared with the prior corresponding period.

Q: What should readers follow next?

A: Funding costs, borrower repayment performance, credit-loss coverage, the composition of new originations and the relationship between volume growth and margins remain relevant to subsequent results.

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