Harmoney slumps to loss but rebounds in the second half

Consumer lender Harmoney reported a loss of NZ$ 400,000 for the year and an eight percent drop in income to $NZ79.1 million after being hit by Covid in the first half of 2021.  

The loss came after the lender posted a cash net profit of $NZ2.8 million in 2020. 

Yet, despite the impact of the pandemic, Harmoney - which has more than half its loans in New Zealand - reported a strong rebound in the second half of the year with its loan book growing to record NZ$501 million. 

The lender stated that growth in new loan originations, low arrears, and strong margins are significant lead indicators for receivables and revenue growth in 2022.  

Customer growth across Australia and New Zealand is quickly approaching 700,000 accounts, the company said, adding that this figure represents a 51 percent cumulative annual growth rate over the past six years.   

Tale of two halves 

Harmoney said loan originations are above their pre-Covid peak and were 260 per cent higher in the second half at $47 million.  

Post the period under review, July’s originations of NZ$54 million beat earlier monthly records. 

“Overall, 2021 was a tale of two halves, with a significant recovery in originations in the second half from the impacts of Covid in the first half. This recovery is expected to drive a strong uplift in revenue and receivables growth in 2022,” said the lender’s chief executive David Stevens. 

“As Australia and New Zealand’s largest 100 percent consumer-direct personal lending platform, we have just begun to see the results of the investments and benefits of our approach to consumer lending.   

"With the ability to access rich insights through our data we can offer our customers tailored solutions to meet their needs while reducing lending risk and delivering strong results for our shareholders.”   

The company said Paul Lahiff will be appointed to the role of chair following the decision by David Flacks to step down.   

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