MoneyMe Narrows Losses as Loan Book Tops $2 Billion

Loan Book Growth and Credit Quality Improvement

MoneyMe Limited (ASX:MME) has crossed a significant milestone, with its loan book swelling 34% year-on-year to $2.08 billion as of 30 June 2026. This growth was powered by record originations of $1.23 billion, also up 34%, led by strong demand in personal loans and secured vehicle finance. The personal loan segment alone surged over 50% to $791.5 million, while the Autopay secured vehicle finance book expanded nearly 30% to $1.18 billion.

Crucially, this rapid expansion did not come at the expense of credit quality. MoneyMe reported net credit losses of 2.4%, down from 3.4% the previous year, marking a third consecutive annual improvement and an all-time low. The weighted average Equifax credit score of its loan book rose to 802, comfortably within the “Very Good” band, reflecting disciplined underwriting and a transition to the OneScore credit decisioning platform during the year.

Revenue Growth and Operating Leverage Emerging

Gross revenue climbed 20% to $248.8 million, underpinned by the larger, higher-quality loan book. Despite increased investments in product innovation, marketing, and technology; including the launch of its Cashback Rewards Credit Card; the company narrowed its statutory net loss by 40% to $40.1 million. On a normalised basis, which adjusts for non-cash items and one-offs, the net loss shrank 74% to $4.1 million, with the second half of FY26 delivering a positive $0.5 million.

Operating expenses rose 30% to $66.7 million, reflecting upfront costs associated with new product launches and expansion of direct-to-consumer channels. However, the operating cost-to-income ratio only increased modestly to 26.8%, and costs stabilised in the second half as revenue growth outpaced expenses, signalling the emergence of operating leverage as scale builds.

Product Innovation and Funding Strength

February 2026 saw the launch of MoneyMe’s Cashback Rewards Credit Card, which was quickly recognised by Finder as Australia’s top cashback credit card. This product, along with a white-label partnership with Luxury Escapes set to launch in early FY27, broadens MoneyMe’s revenue streams and customer engagement opportunities.

On the funding front, MoneyMe completed over $1 billion in public asset-backed securitisations during FY26, including its largest personal loan ABS deal to date. It also established a $300 million credit card warehouse facility on improved terms and secured a reduced margin on its $125 million corporate facility. These moves expanded total funding capacity to approximately $3 billion, supporting the company’s growth ambitions with diversified and cost-efficient capital sources.

AI Integration and ESG Commitments

Artificial intelligence and automation have become deeply embedded in MoneyMe’s proprietary Horizon platform, enhancing credit decisioning, customer service, and operational efficiency. The company continues to invest in scaling AI capabilities, which it sees as a key competitive advantage.

MoneyMe also maintains its Certified B Corporation status and has made strides in environmental and social governance, including strong employee engagement scores, expanded community sponsorships, and initiatives to reduce carbon emissions intensity in its vehicle finance portfolio.

Outlook and Guidance

Looking ahead, MoneyMe enters FY27 with a larger, higher-quality loan book and a more efficient operating model. The company expects to maintain loan portfolio growth, with guidance for an average loan book of around $2.2 billion. Normalised NPAT is forecast to range from breakeven to $7 million, reflecting ongoing investments in AI, product expansion, and customer acquisition, particularly in credit cards and white-label partnerships.

While macroeconomic conditions remain uncertain, MoneyMe’s predominantly variable-rate portfolio and diversified funding platform position it to navigate the environment with disciplined growth. The company aims to continue improving risk-adjusted net interest margins and operating leverage as its investments mature.

Investors should watch how the new credit card and white-label initiatives scale and contribute to earnings in FY27 and beyond, as well as how AI-driven efficiencies translate into sustained profitability.

These developments build on MoneyMe’s recent momentum, including its achievement of positive normalised profitability in the second half of FY26, following a period of significant strategic investment and portfolio expansion. The company’s ability to grow while improving credit quality and funding efficiency remains a key focus as it seeks to close the gap between operational performance and shareholder value.