MoneyMe's loan book has surged to $1.9 billion, driving a positive Normalised NPAT in 3Q26 as the fintech lender expands into credit cards with a new launch and a Luxury Escapes partnership.
- Loan book grows 29% year-on-year to $1.9 billion
- 3Q26 originations jump 43% to $325 million
- Normalised NPAT turns positive for the quarter
- Credit losses improve to 2.6% with stronger credit quality
- New cashback credit card launched; Luxury Escapes partnership signed
Loan Book Scale Drives Profitability Inflection
MoneyMe (ASX:MME) reached a key milestone in the March quarter, growing its loan book by $150 million to $1.90 billion and delivering a positive Normalised NPAT for the first time at this scale. The fintech lender’s $325 million in originations for 3Q26 marked a 43% increase on the prior corresponding period and an 18% rise from the previous quarter, underpinning the company’s accelerating growth trajectory.
This growth pushed revenue up 17% year-on-year to $62 million, outpacing cost increases and enabling operating leverage. Credit performance also improved, with net credit losses falling to 2.6%, down from 3.7% a year earlier, reflecting MoneyMe’s focus on secured vehicle finance and higher credit quality segments. The average credit score rose to 802, placing the portfolio in Equifax’s “Very Good” range.
Funding Costs Fall, Supporting Margin Expansion
MoneyMe’s funding efficiency strengthened notably, with a 75 basis point reduction in its corporate facility cost, aided by capital markets transactions earlier in the year and the drawdown of a new credit card warehouse facility. These improvements contributed to a risk-adjusted net interest margin (RNIM) of 2.4% for the quarter, a 0.8 percentage point gain on the prior year.
CEO Clayton Howes highlighted the company’s ability to absorb macroeconomic pressures, noting that a predominantly variable interest rate loan book and strong credit discipline have preserved capital and maintained pricing power. The company’s strategic partnership with iPartners remains a cornerstone of its funding strength.
Credit Card Launch and Luxury Escapes Deal Signal Diversification
In a move to diversify beyond personal and auto loans, MoneyMe launched its Cashback Rewards Credit Card in 3Q26, which Finder has recognised as the top cashback credit card in Australia. Early customer adoption has been strong, positioning the company to build scale in the credit card segment.
Further expanding its footprint, MoneyMe signed a white-label credit card partnership with Luxury Escapes, expected to launch in 4Q26. This deal taps into Luxury Escapes’ 9 million global members and represents a strategic extension of MoneyMe’s multi-product approach. The credit card portfolio’s growth may weigh on near-term profitability but is anticipated to drive margin expansion as scale builds.
This latest update follows MoneyMe’s earlier progress in funding and loan book growth, including the $1.75bn loan book growth reported in January, which laid the groundwork for the current profitability inflection.
Technology and Efficiency Gains Underpin Future Growth
MoneyMe continues to embed AI and automation across credit decisioning, marketing, and operations, enhancing speed and accuracy while driving operating efficiencies. These investments support the company’s strategy to capture underserved market segments with innovative, well-priced products and outstanding customer service.
With a loan book now nearing $2 billion and funding costs trending lower, MoneyMe is positioned to leverage operating scale. However, the near-term impact of credit card growth on profitability and prevailing market conditions remain variables to watch.
Bottom Line?
MoneyMe’s scale and improved credit metrics mark a turning point, but the path to sustained profitability hinges on credit card portfolio growth and market conditions.
Questions in the middle?
- How quickly will the credit card portfolio scale to materially impact margins?
- Can MoneyMe sustain its improved credit performance amid rising economic pressures?
- What is the potential impact of evolving funding costs on future profitability?