Harmoney beats loan forecasts as volumes return to pre-Covid levels

Harmoney chief executive David Stevens. Photo / Twitter

Auckland-based non-bank lender Harmoney issued 2 per cent more loans in the six months to December than forecast in its prospectus, the company said in a market update.

Strong second quarter demand saw New Zealand loans increase 44 per cent to $62 million and Australian loans 69 per cent to $27m, bringing the total current loan book to $469m.

Managing director David Stevens said the improved quarter saw a return to pre-Covid lending volumes.

"This is a volume recovery which we expect to sustain into the second half, as consumers demand more agile, flexible and convenient online borrowing experiences," he said.

Harmoney dual-listed on November 19 following a A$92.5m ($100.1m) initial public offer priced at A$3.50 a share.

The stock gained 21c, or 7.5 per cent, to $3 on the NZX.

Stevens said the firm limited new loan originations during the pandemic, which slowed loan growth year-on-year.

"However, in line with the wider economic recovery, we have adjusted credit settings and ramped up marketing activity with a focus on attracting a strong pipeline of high quality borrowers in Australia and New Zealand. Our technology-based Stellare platform is delivering more aggressive growth in FY21, and is supported by the recent addition of our third warehouse facility."

Harmoney previously announced it had set up a second NZ warehouse funding facility to be provided by M&G Investments of up to $200m.

"This facility, combined with Harmoney's two other 'Big Four' bank warehouse facilities, provides total warehousing capacity of $353m and A$115m, while significantly reducing Harmoney's funding costs," Stevens said.

As at December 31, 2020, Harmoney had $264m of available funding headroom across its three warehouse facilities, providing strong capacity for growth.

Harmoney has now originated over $1.9 billion in personal loans to more than 48,000 customers across New Zealand and Australia with a total current loan book of approximately $469m as at December 31, 2020.