MoneyMe Hits Profitability as $1.9B Loan Book Surges 29% with Stronger Credit
MoneyMe loan book grows to $1.90 billion as fintech hits profitability milestone
MoneyMe Ltd has delivered a pivotal third quarter result, with its loan book reaching $1.90 billion (up 29% on the prior corresponding period) as originations surged 43% to $325 million. The fintech lender achieved positive Normalised NPAT for the quarter, marking an inflection point where revenue growth is outpacing costs. Gross revenue increased to $62 million, up 17% on the prior corresponding period, whilst credit performance strengthened with net credit losses declining to 2.6% from 3.7% a year earlier.
The quarter-on-quarter momentum remained strong, with originations rising 18% from $275 million in the December quarter and the loan book expanding by $150 million during the three-month period. The combination of scale growth and profitability inflection demonstrates MoneyMe has reached operational leverage, validating its business model at sufficient scale to generate sustainable earnings as the portfolio continues to expand.
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What is Normalised NPAT and why does this profitability measure matter?
Normalised NPAT represents statutory profit adjusted for non-cash depreciation, expected credit loss provision movements, and significant infrequent items. Fintechs and lenders use this metric to show underlying operational performance by removing accounting treatments that don’t reflect the day-to-day economics of the lending business. Expected credit loss provisions, for example, are forward-looking estimates that can swing significantly based on economic forecasts rather than actual loan performance.
MoneyMe has been loss-making on a statutory basis but crossed into positive Normalised NPAT this quarter. This signals the operating leverage concept in action: at sufficient loan book scale, revenue growth begins to outpace the relatively fixed cost base of technology platforms, customer acquisition, and corporate infrastructure. For growth-stage lenders, Normalised NPAT profitability validates that the business model can generate sustainable earnings as scale increases, providing a foundation for continued expansion without requiring additional capital to fund losses.
Credit quality strengthens as loan book composition shifts
MoneyMe’s credit performance has improved materially across multiple metrics, with the portfolio now carrying an average credit score of 802 (within Equifax’s “Very Good” range). The secured asset ratio stands at 60%, reflecting the company’s focus on vehicle finance as a core lending category. Arrears performance strengthened to 84 basis points for loans 90+ days overdue, down from 131 basis points in the prior corresponding period.
Risk-adjusted NIM improved to 2.4% from 1.6% a year earlier, whilst new originations are trending toward 3.5% on the current product mix. The widening spread between risk-adjusted returns and funding costs demonstrates disciplined underwriting as the book scales rapidly.
| Metric | 3Q25 | 2Q26 | 3Q26 |
|---|---|---|---|
| Net credit losses | 3.7% | 2.9% | 2.6% |
| 90+ arrears | 131bps | 96bps | 84bps |
| Average credit score | 784 | 799 | 802 |
| Risk-adjusted NIM | 1.6% | 2.1% | 2.4% |
Declining loss rates whilst growing the book rapidly indicates disciplined underwriting standards. The improving risk-adjusted NIM shows the business is generating better risk-adjusted returns per dollar lent, a critical metric for lender profitability. The shift toward higher credit quality borrowers and secured assets provides a buffer against economic headwinds whilst supporting margin expansion.
Funding efficiencies support margin expansion
Corporate facility cost reduction
MoneyMe formalised a 75-basis point reduction in the cost of its corporate facility during the quarter. Funding cost improvements have been realised from first-half capital markets transactions and the inaugural drawdown of the new credit card warehouse facility, which provides significantly lower funding costs and a more capital-efficient structure.
The strategic partnership with iPartners continues to deliver favourable terms across MoneyMe’s funding arrangements. Lower funding costs directly improve net interest margins and profitability. For a lender, the spread between borrowing costs and lending rates represents the core earnings driver, making funding efficiency a structural competitive advantage as the business scales.
Credit card expansion opens new growth channels
MoneyMe launched its Cashback Rewards Credit Card during the quarter, receiving recognition from Finder as the number one cashback credit card. Customer adoption has been strong in the initial rollout phase. The company has signed a white-label credit card partnership with Luxury Escapes, with launch expected in the fourth quarter of the current financial year.
The white-label partnership opens access to millions of potential customers through co-brand distribution into the travel and lifestyle segment. This represents a capital-efficient customer acquisition channel, leveraging Luxury Escapes’ existing customer base without direct marketing expenditure.
Clayton Howes, Managing Director and CEO
“The launch of our Cashback Rewards Credit Card and upcoming white-label partnership with Luxury Escapes will expand access to millions of potential customers. While credit card growth may have a near-term impact on profitability, it is expected to deliver meaningful margin expansion as the portfolio scales.”
Management has acknowledged that credit card growth may affect near-term profitability metrics as the portfolio establishes. Credit cards typically carry higher loss rates during the early ramp-up phase but deliver superior unit economics at scale due to higher margins and revolving balances. The strategic trade-off positions MoneyMe for meaningful margin expansion once the credit card loan book reaches critical mass.
AI and automation driving operational efficiency
AI and automation are increasingly embedded across MoneyMe’s product engineering, credit decisioning, marketing and operations. These technology investments are reported to enhance processing speed, improve decision accuracy and drive operating efficiencies across the platform.
The technology-driven efficiency gains connect directly to the operating leverage narrative. As origination volumes increase, per-unit processing costs decline because the technology infrastructure can handle greater volumes without proportional cost increases. This structural advantage amplifies profitability as the loan book scales, creating a widening gap between revenue growth and cost base expansion.
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Outlook and path to sustained profitability
MoneyMe stated it remains on track to deliver on its FY26 strategic priorities. The company’s efficient operating cost model, strong credit performance and healthy risk-adjusted NIM settings are reported to provide the platform for increased operating leverage as the loan book continues to scale, subject to prevailing market conditions.
Credit cards and white-label partnerships are expected to contribute to the returns profile when the credit card loan book reaches scale. The third quarter result established proof of concept for the profitability model, with the trajectory suggesting continued operating leverage as the business scales.
Key growth levers identified by the company include:
- Continued loan book scaling toward $2 billion and beyond
- Sustained credit quality with focus on secured vehicle finance
- Credit card portfolio growth through direct and white-label channels
- Funding cost optimisation through warehouse facilities
The investment significance centres on MoneyMe demonstrating that its lending platform can generate sustainable profits at current scale. The positive Normalised NPAT outcome validates the unit economics, whilst new product lines (credit cards, white-label partnerships) provide additional growth optionality beyond the core personal loan and vehicle finance categories. Technology-driven efficiency gains position the company to maintain cost discipline whilst origination volumes continue to expand.
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