MoneyMe Surpasses $2bn Loan Book with Positive Profit in 2H26

Loan Book Growth Accelerates Past $2 Billion

MoneyMe (ASX:MME) closed FY26 with a loan book of $2.08 billion, marking a 34% increase year-on-year and surpassing the $2 billion milestone for the first time. Annual loan originations climbed to $1.23 billion, also up 34% from FY25, reflecting strong demand across its personal loan and auto finance products. The fourth quarter alone saw originations rise 57% compared to the prior corresponding period, reaching $368 million.

Improved Credit Quality and Positive Earnings Inflection

The lender’s credit performance continued to strengthen, with net credit losses falling to 2.4% in 4Q26, down a full percentage point from the previous year and improving for the fifth consecutive quarter. The average credit score of new loans sits comfortably within Equifax’s “Very Good” range, supporting MoneyMe’s disciplined risk approach. This credit improvement, combined with lower funding costs, lifted the risk-adjusted net interest margin (RNIM) to 2.4% in 4Q26, up 0.9 percentage points year-on-year.

These factors contributed to a positive Normalised NPAT of $0.5 million in the second half of FY26, a notable turnaround from a $15.5 million loss in the prior year. Operating cash profit was $11 million for FY26, despite increased investment in marketing and new product launches. MoneyMe’s CEO Clayton Howes highlighted that these results demonstrate the company’s investments in technology and funding are beginning to yield sustainable operating leverage.

Funding Platform Strengthened by Securitisation and Rating Upgrades

MoneyMe executed its largest personal loan asset-backed securitisation (ABS) transaction in May 2026, raising $365.4 million. This was the third public capital markets deal of the year, bringing total ABS issuance for FY26 to over $1 billion. The transactions attracted strong demand from both domestic and offshore investors, helping to reduce the company’s cost of funds and improve margins.

Fitch Ratings upgraded two note tranches on MoneyMe’s prior ABS deals, reflecting the improved credit quality of the underlying personal loan assets. This rating boost further supports MoneyMe’s funding strategy and capacity to scale the loan book efficiently.

Product Innovation and AI Deployment Drive Efficiency

On the product front, MoneyMe launched its Cashback Rewards Credit Card, successfully migrating customers from its legacy Freestyle card. The company also introduced an Energy Upgrade Personal Loan, offering discounted rates for homeowners investing in energy-efficient improvements, aligning with its ESG commitments.

AI and automation remain central to MoneyMe’s strategy, with the technology now embedded across credit decisioning, operations, customer service, finance, marketing, and creative content. This has contributed to a 2.2 percentage point reduction in the operating cost-to-income ratio in 4Q26, alongside a modest reduction in headcount, while originations grew 13% over the same period. The ongoing rollout of AI agents is expected to enhance scalability and profitability as the company expands.

Outlook for FY27 and Beyond

Entering FY27, MoneyMe is positioned with a stronger competitive edge, underpinned by its proprietary Horizon platform and AI capabilities. The company plans to continue investing in brand, marketing, and product diversification, including the upcoming launch of a Luxury Escapes co-branded credit card. These initiatives aim to deepen customer engagement and improve lifetime value.

With a disciplined funding approach, improving credit metrics, and expanding product offerings, MoneyMe anticipates that scaling the loan book will drive increased operating leverage and earnings growth, subject to market conditions. The path to sustained profitability appears clearer as the fintech leverages technology to differentiate itself from traditional lenders.