Q4 2026 Moneyme Ltd Earnings Call

August 19, 2026

Operator 2: Thank you for standing by, and welcome to the Moneyme FY26 Results Conference Call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypads. I would now like to hand the conference call over to Mr. Clayton Howes, founder, managing director, and Chief Executive Officer. Please go ahead.

Operator: Thank you for standing by, and welcome to the MoneyMe FY 2026 Results Conference Call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypads. I would now like to hand the conference call over to Mr. Clayton Howes, Founder, Managing Director, and Chief Executive Officer. Please go ahead.

Speaker #1: If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference call over to Mr. Clayton House, Founder, Managing Director, and Chief Executive Officer.

Speaker #1: Please go ahead.

Speaker #2: Good morning, everyone, and thank you for joining us. I'd like to begin by acknowledging the Traditional Custodians of the lands across Australia and pay my respects to Elders past and present.

Clayton Howes: Good morning, everyone, and thank you for joining us. I would like to begin by acknowledging the traditional custodians of the lands across Australia and pay my respects to elders, past and present. Welcome to Moneyme Financial Year 26 results presentation. I am Clayton Howes, founder, managing director, and CEO, and joining me today is David Wright, our Chief Financial Officer. I will begin by taking you through the year, the operational progress we have made, and importantly, why we believe the business is entering a fundamentally different phase of its evolution. Dave will then cover the financial results before I return to discuss strategy, outlook, and where this business is heading. Every company has defining years. Years where you do not just get bigger, you prove something. For Moneyme, Financial Year 26 was one of those years.

Speaker #2: Welcome to the MoneyMe Financial Year 2026 results presentation. I'm Clayton Howes, founder, Managing Director, and CEO, and joining me today is David Wright, our Chief Financial Officer.

Speaker #2: I'll begin by taking you through the year, the operational progress we've made, and, importantly, why we believe the business is entering a fundamentally different phase of its evolution.

Clayton Howes: I will begin by taking you through the year, the operational progress we have made, and importantly, why we believe the business is entering a fundamentally different phase of its evolution. Dave will then cover the financial results before I return to discuss strategy, outlook, and where this business is heading. Every company has defining years. Years where you do not just get bigger, you prove something. For MoneyMe, Financial Year 26 was one of those years.

Speaker #2: Dave will then cover the financial results before I return to discuss strategy, outlook, and where this business is heading. Every company has defining years.

Speaker #2: There are years where you don't just get bigger; you prove something. For MoneyMe, financial year '26 was one of those years. We demonstrated that we can grow rapidly, improve portfolio quality, and begin converting that scale into earnings at the same time.

Clayton Howes: We demonstrated that we can grow rapidly, improve portfolio quality, and begin converting that scale into earnings at the same time. That is a very different stage of business to the one investors knew just a few years ago. Today, we are an AI-powered consumer finance platform, serving ambitious Australians who expect finance to be fast, simple, and digital. During FY26, our loan book exceeded AUD 2 billion for the first time. We delivered record originations, credit quality improved materially, funding became cheaper, and the foundations we have been investing in for several years are now beginning to translate into operating leverage. Importantly, these were not isolated achievements. They were all connected. Each improvement reinforces the next, creating a stronger business than the one we started with just over a year ago. For those newer to the story, let me briefly explain what makes Moneyme very different.

Speaker #2: That's a very different stage of business to the one investors knew just a few years ago. Today, we're an AI-powered consumer finance platform serving ambitious Australians who expect finance to be fast, simple, and digital.

Speaker #2: During FY26, our loan book exceeded $2 billion for the first time. We delivered record originations. Credit quality improved materially. Funding became cheaper. And the foundations we've been investing in for several years are now beginning to translate into operating leverage.

Clayton Howes: We delivered record originations, credit quality improved materially, funding became cheaper, and the foundations we have been investing in for several years are now beginning to translate into operating leverage. Importantly, these were not isolated achievements. They were all connected. Each improvement reinforces the next, creating a stronger business than the one we started with just over a year ago. For those newer to the story, let me briefly explain what makes MoneyMe very different.

Speaker #2: Importantly, these weren't isolated achievements. They are all connected. Each improvement reinforces the next, creating a stronger business than the one we started with just over a year ago.

Speaker #2: For those newer to the story, let me briefly explain what makes Moneyme very different. Since 2013, we have focused on improving the customer experience around credit.

Clayton Howes: Since 2013, we have focused on improving the customer experience around credit. We compete on three things: value, speed, and experience. We provide highly competitive pricing. Customers can speak to someone in seconds rather than waiting on hold. Applications are digital. Approvals are fast. Funds can settle within minutes rather than days. That combination is why customers increasingly choose Moneyme over traditional lenders. It is also why we have been able to continue growing share despite a highly competitive market. This slide shows how far we have come. From starting the business in 2013, to listing on the ASX, to now originating almost AUD 6 billion of lending for more than half a million Australians. FY26 was another milestone year. We passed AUD 2 billion in the loan book, completing our eighth securitization. We became a Mastercard principal issuer and launched our first white label credit card partnership.

Speaker #2: We compete on three things: value, speed, and experience. We provide highly competitive pricing; customers can speak to someone in seconds rather than waiting on hold. Applications are digital, approvals are fast, and funds can settle within minutes rather than days. That combination is why customers increasingly choose MoneyMe over traditional lenders.

Speaker #2: It's also why we've been able to continue growing share, despite a highly competitive market. This slide shows how far we've come: from starting the business in 2013, to listing on the ASX, to now originating almost $6 billion of lending for more than half a million Australians.

Clayton Howes: It is also why we have been able to continue growing share despite a highly competitive market. This slide shows how far we have come. From starting the business in 2013, to listing on the ASX, to now originating almost AUD 6 billion of lending for more than half a million Australians. FY26 was another milestone year. We passed AUD 2 billion in the loan book, completing our eighth securitization. We became a Mastercard principal issuer and launched our first white label credit card partnership.

Speaker #2: Financial year '26 was another milestone year. We passed $2 billion in the loan book, completed our eighth securitization, became a Mastercard principal issuer, and launched our first white-label credit card partnership.

Speaker #2: While each achievement is significant on its own, what matters more is that there's still the same technology platform that we began with. We're not buying a separate business to create growth.

Clayton Howes: While each achievement is significant on its own, what matters more is that they are still the same technology platform that we began with. We are not buying a separate business to create growth. We are extending a platform we have already built. That means every new product improves the future economics of this entire business. FY26 wasn't delivered in easy conditions. Interest rates remained elevated. Inflation continued to pressure customers. Competition remained intense. Yet, businesses aren't defined by favorable markets. They are defined by how they perform through all cycles. There are three structural trends working in our favor. The first, non-bank lenders continue gaining market share as banks focus increasingly on capital efficiency and mortgage lending. The second, technology is creating genuine competitive separation. Not because AI is fashionable, but because businesses using it effectively can make better credit decisions, automate more processes, and serve customers at significantly lower cost.

Speaker #2: We're extending a platform we've already built. That means every new product improves the future economics of this entire business. Financial Year 2026 wasn't delivered in easy conditions.

Speaker #2: Interest rates remained elevated. Inflation continued to pressure customers. Competition remained intense. Yet businesses aren't defined by favorable markets; they're defined by how they perform through all cycles.

Clayton Howes: Competition remained intense. Yet, businesses aren't defined by favorable markets. They are defined by how they perform through all cycles. There are three structural trends working in our favor. The first, non-bank lenders continue gaining market share as banks focus increasingly on capital efficiency and mortgage lending. The second, technology is creating genuine competitive separation. Not because AI is fashionable, but because businesses using it effectively can make better credit decisions, automate more processes, and serve customers at significantly lower cost.

Speaker #2: There are three structural trends working in our favor. The first: non-bank lenders continue gaining market share as banks focus increasingly on capital efficiency and mortgage lending.

Speaker #2: Second, technologies are creating genuine competitive separation, not because AI is fashionable, but because businesses using it effectively can make better credit decisions, automate more processes, and serve customers at significantly lower cost.

Speaker #2: And third, our funding position continues to improve as credit quality strengthens. Better assets create better funding economics. Better funding economics allow us to price more competitively, which attracts better customers.

Clayton Howes: The third, our funding position continues improving as credit quality strengthens. Better assets create better funding economics. Better funding economics allow us to price more competitively, which attracts better customers. That flywheel is becoming increasingly powerful. Let me now walk through what we achieved during FY26. Four numbers tell most of the story. The loan book reached over AUD 2 billion, AUD 2.08 billion. Revenue grew to AUD 249 million. Originations exceeded AUD 1.2 billion. Net credit losses reduced to just 2.4%. Individually, those are strong outcomes, but together they are much more significant. In consumer lending, it is relatively easy to grow quickly. It is also possible to improve credit quality. Doing both at the same time is much harder, but that is exactly what we have demonstrated this year.

Speaker #2: That flywheel is becoming increasingly powerful. Let me now walk through what we achieved during FY26. Four numbers tell most of this story: the loan book reached over $2 billion.

Speaker #2: $2.08 billion. Revenue grew to $249 million. Originations exceeded $1.2 billion. Net credit losses reduced to just 2.4%. Individually, those are strong outcomes, but significant.

Clayton Howes: Revenue grew to AUD 249 million. Originations exceeded AUD 1.2 billion. Net credit losses reduced to just 2.4%. Individually, those are strong outcomes, but together they are much more significant. In consumer lending, it is relatively easy to grow quickly. It is also possible to improve credit quality. Doing both at the same time is much harder, but that is exactly what we have demonstrated this year.

Speaker #2: In consumer lending, it's relatively easy to grow quickly. It's also possible to improve credit quality. Doing both at the same time is much harder.

Speaker #2: But that's exactly what we've demonstrated this year. The achievement I'm most proud of isn't simply how much we've grown; it's the quality of that growth.

Clayton Howes: The achievement I am most proud of isn't simply how much we have grown, it is the quality of that growth, because sustainable earnings aren't created through disciplined growth, not just growth at any cost, growth at smart, disciplined operating models like the one we have demonstrated. FY26 represents an important earning milestone. Statutory losses continued improving. Normalized earnings improved substantially, and importantly, the H2 delivered positive normalized NPAT. That represents an important inflection point. It validates the direction we have been taking over the past several years. Our operating cost to income increased during the year, but that was highly expected. We deliberately accelerated investments into direct distribution, AI capability, and our credit card platform. Those costs are recognized immediately. The earnings arrive later. More importantly, the trend through the H2 already demonstrates operating leverage beginning to emerge. Costs largely stabilized while revenue continued growing.

Speaker #2: Because sustainable lendings are created through disciplined growth—not just growth at any cost, but growth with smart, disciplined operating models like the one we've demonstrated.

Speaker #2: FY26 represents an important earnings milestone. Statutory losses continued improving. Normalized earnings improved substantially. And, importantly, the second half delivered positive normalized impact. That represents an important inflection point.

Clayton Howes: That represents an important inflection point. It validates the direction we have been taking over the past several years. Our operating cost to income increased during the year, but that was highly expected. We deliberately accelerated investments into direct distribution, AI capability, and our credit card platform. Those costs are recognized immediately. The earnings arrive later. More importantly, the trend through the H2 already demonstrates operating leverage beginning to emerge. Costs largely stabilized while revenue continued growing.

Speaker #2: It validates the direction we've been taking over the past several years. Our operating cost-to-income increased during the year, but that was entirely expected.

Speaker #2: We deliberately accelerated investment into direct distribution, AI capability, and our credit card platform. Those costs are recognized immediately; the earnings arrive later. More importantly, the trend through the second half already demonstrates operating leverage beginning to emerge.

Speaker #2: Costs largely stabilized, while revenue continued growing. Now, that's exactly what we expected to see. This slide explains perhaps the most important strategic decision we made.

Clayton Howes: Now, that is exactly what we have expected to see. This slide explains perhaps the most important strategic decision we made. We deliberately accepted lower headline yields in exchange for higher credit quality customers. On the surface, that reduced Net Interest Margin, but lower credit losses and cheaper funding more than compensated. Risk-adjusted margin improved significantly. That is the key measure we actually manage this business against. Importantly, new lending is already riding well above the portfolio average. As those newer vintages become a larger proportion of the book, we expect that improvement just to continue. Against each of our five strategic pillars, we have made meaningful progress: technology, funding, credit quality, products, and trust. What excites me most is not each pillar individually. It is how they reinforce one another. Technology improves credit decisioning. Better credit performance lowers funding costs. Lower funding costs improve pricing. Better pricing attracts better customers.

Speaker #2: We deliberately accepted lower headline yields in exchange for higher credit quality customers. On the surface, that reduced our net interest margin, but lower credit losses and cheaper funding more than compensated.

Speaker #2: Risk-adjusted margin improved significantly. That's the key measure we actually manage this business against. Importantly, new lending is already running well above the portfolio average.

Clayton Howes: Importantly, new lending is already riding well above the portfolio average. As those newer vintages become a larger proportion of the book, we expect that improvement just to continue. Against each of our five strategic pillars, we have made meaningful progress: technology, funding, credit quality, products, and trust. What excites me most is not each pillar individually. It is how they reinforce one another. Technology improves credit decisioning. Better credit performance lowers funding costs. Lower funding costs improve pricing. Better pricing attracts better customers.

Speaker #2: As those newer vintages become a larger proportion of the book, we expect that improvement to continue. Against each of our five strategic pillars, we've made meaningful progress.

Speaker #2: Technology, funding, credit quality, products, and trust—what excites me most isn’t each pillar individually; it’s how they reinforce one another. Technology improves credit decisioning.

Speaker #2: Better credit performance lowers funding costs. Lower funding costs improve pricing. Better pricing attracts better customers. That creates stronger economics, which fund the next round of our investment.

Clayton Howes: That creates stronger economics, which funds the next round of our investment. That is how enduring finance businesses compound over time. Let me now take you through our operational progress. Horizon. It remains at the core of everything we do. People often ask us about AI. For us, AI is not a project. It is not a department. It is not something we talk about because it is fashionable. It is increasingly becoming the operating system of our business. Every improvement allows us to serve customers faster, make better lending decisions, reduce operating cost, improve fraud detection, or automate work that previously required manual human intervention. Ultimately, AI is not about technology. It is about economics. It is one of the biggest reasons we believe operating leverage continues improving in our business. Technology only matters if customers actually experience the benefit.

Speaker #2: And that's how enduring finance businesses compound over time. Let me now take you through our operational progress. Horizon remains at the core of everything we do around AI.

Speaker #2: For us, AI isn't a project. It isn't a department. It isn't something we talk about because it's fashionable. It's increasingly becoming the operating system of our business.

Speaker #2: Every improvement allows us to serve customers faster, make better lending decisions, reduce operating costs, improve fraud detection, or automate work that previously required manual human intervention.

Clayton Howes: Every improvement allows us to serve customers faster, make better lending decisions, reduce operating cost, improve fraud detection, or automate work that previously required manual human intervention. Ultimately, AI is not about technology. It is about economics. It is one of the biggest reasons we believe operating leverage continues improving in our business. Technology only matters if customers actually experience the benefit.

Speaker #2: Ultimately, AI isn't about technology; it's about economics. It's one of the biggest reasons we believe operating leverage continues improving in our business. Technology only matters if customers actually experience the benefit.

Speaker #2: Our customer metrics continue demonstrating that, whether it's our net promoter score, review ratings, or answering most calls within 10 seconds. Say that again—answering most calls within 10 seconds.

Clayton Howes: Our customer metrics continue demonstrating that, whether it is our Net Promoter Score, review ratings, or answering most calls within 10 seconds. Say that again. Answering most calls within 10 seconds. Those outcomes are not marketing achievements. They are operational achievements. Increasingly, they become a competitive advantage that is difficult for traditional institutions to replicate. Turning now to products, vehicle finance continues performing exceptionally well. Autopay has now become an AUD 1.2 billion business. But what excites me most is not where it is today. It is where the next growth comes from. Private sales, direct vehicle finance, new distribution channels. They are expanding the addressable market rather than simply shifting volume between channels. That is exactly the type of growth opportunity we really like. Personal loans were our fastest-growing product in FY26. Growth came through a stronger customer proposition, higher loan limits, longer loan terms, and increasing strength in our direct channel.

Speaker #2: Those outcomes aren't marketing achievements—they're operational achievements. And increasingly, they become a competitive advantage that's difficult for traditional institutions to replicate. Turning now to products, vehicle finance continues performing exceptionally well.

Speaker #2: Autopay has now become a $1.2 billion business. But what excites me most isn't where it is today; it's where the next growth comes from.

Clayton Howes: Autopay has now become an AUD 1.2 billion business. But what excites me most is not where it is today. It is where the next growth comes from. Private sales, direct vehicle finance, new distribution channels. They are expanding the addressable market rather than simply shifting volume between channels. That is exactly the type of growth opportunity we really like. Personal loans were our fastest-growing product in FY26. Growth came through a stronger customer proposition, higher loan limits, longer loan terms, and increasing strength in our direct channel.

Speaker #2: Private sales. Direct vehicle finance. New distribution channels. They're expanding the addressable market, rather than simply shifting volume between channels. That's exactly the type of growth opportunity we really like.

Speaker #2: Personal loans were our fastest-growing product in FY26. Growth came through a stronger customer proposition: higher loan limits, longer loan terms, and increasing strength in our direct channel.

Speaker #2: Importantly, we achieved that while maintaining acquisition discipline and improving funding efficiency through further securitizations for this product. For me, this is where the next chapter of MoneyMe begins.

Clayton Howes: Importantly, we achieved that while maintaining acquisition discipline and improving funding efficiency through further securitizations for this product. For me, this is where the next chapter of Moneyme begins. Credit cards are not simply another lending product. They fundamentally change our relationship with customers. Instead of interacting every few years when someone needs a loan, we can now become part of their everyday financial life. That creates significantly more engagement, more data, better credit decisions, higher customer lifetime value, and stronger long-term economics. The investment we have made this year establishes the platform. FY27 is about scaling it. FY28 is where we expect that investment to begin contributing materially to earnings. Now, this slide is really about the future of Moneyme. Increasingly, we are no longer thinking about individual products. We are thinking about customer relationships. Today, we operate multiple products across multiple channels through a single customer platform.

Speaker #2: Credit cards aren't simply another lending product. They fundamentally change our relationship with customers. Instead of interacting every few years when someone needs a loan, we can now become part of their everyday financial life.

Speaker #2: That creates significantly more engagement, more data, better credit decisions, higher customer lifetime value, and stronger long-term economics. The investment we've made this year establishes the platform.

Clayton Howes: The investment we have made this year establishes the platform. FY27 is about scaling it. FY28 is where we expect that investment to begin contributing materially to earnings. Now, this slide is really about the future of MoneyMe. Increasingly, we are no longer thinking about individual products. We are thinking about customer relationships. Today, we operate multiple products across multiple channels through a single customer platform.

Speaker #2: Financial Year 2027 is about scaling it. FY28 is where we expect that investment to begin contributing materially to earnings. Now, this slide is really about the future of MoneyMe: increasingly, we're no longer thinking about individual products.

Speaker #2: We're thinking about customer relationships. Today, we operate multiple products across multiple channels through a single customer platform. Every interaction teaches us something: card spend, repayment behavior, vehicle ownership, borrowing needs.

Clayton Howes: Every interaction teaches us something. Card spend, repayment behavior, vehicle ownership, borrowing needs. That allows us to provide increasingly relevant products with time. Rather than acquiring a customer repeatedly, we are building a relationship that lasts years. That is much more valuable business. Brand. This is really interesting investment that we have made in this recent year. We believe building a stronger direct business requires building a stronger brand. We have grown largely through intermediaries in the past. Now, increasingly, we are investing so customers choose Moneyme directly. That is not about replacing brokers. It is about creating a second engine for growth, one that broadens our addressable market while improving lifetime economics. Finally, trust remains fundamental, whether that is our B Corp certification, supporting communities through World Vision, protecting customer data, or maintaining strong governance. These are not separate initiatives.

Speaker #2: That allows us to provide increasingly relevant products over time. So, rather than acquiring a customer repeatedly, we're building a relationship that lasts years. That's a much more valuable business.

Speaker #2: Brand—now, this is a really interesting investment that we've made in this recent year. We believe building a stronger direct business requires building a stronger brand.

Speaker #2: We've grown largely through intermediaries in the past. Now we're increasingly investing so customers choose MoneyMe directly. That's not about replacing brokers; it's about creating a second engine for growth.

Clayton Howes: We have grown largely through intermediaries in the past. Now, increasingly, we are investing so customers choose MoneyMe directly. That is not about replacing brokers. It is about creating a second engine for growth, one that broadens our addressable market while improving lifetime economics.

Speaker #2: One that broadens our addressable market while improving lifetime economics. Finally, trust remains fundamental, whether that's our B Corp certification, supporting communities through World Vision, protecting customer data, or maintaining strong governance.

Clayton Howes: Finally, trust remains fundamental, whether that is our B Corp certification, supporting communities through World Vision, protecting customer data, or maintaining strong governance. These are not separate initiatives. They are all part of building a business that customers, funding partners, and shareholders can trust over this long term. I will now hand over to Dave to take you through the financial results in more detail.

Speaker #2: These aren't separate initiatives; they're all part of building a business that customers, funding partners, and shareholders can trust over the long term. I'll now hand over to Dave to take you through the financial results in more detail.

Clayton Howes: They are all part of building a business that customers, funding partners, and shareholders can trust over this long term. I will now hand over to Dave to take you through the financial results in more detail.

Speaker #1: Thank you, Clay. And good morning, everyone. I'll now run through the financial details, starting with the income statement. Gross revenue increased 20% to $249 million, driven by a 34% loan book growth, partly offset by lower yields from the deliberate shift to higher quality lending.

David Wright: Thank you, Clay, and good morning, everyone. I will now run through financial details. Starting with the income statement. Gross revenue increased 20% to AUD 249 million, driven by a 34% loan book growth, partly offset by lower yields from the deliberate shift to higher quality lending. Impairment expense fell 12%, despite a materially larger book led by stronger personal loan credit performance. Operating expenses increased to AUD 66.7 million, largely driven by investment in direct channel marketing, credit cards, and white label partnerships. That investment is recognized immediately, while the earnings build over future periods. Expenses stabilized through the H2, while revenue grew around 12% on that prior half. That gap is operating leverage, and it is happening now. Statutory net loss after tax improved 40% to AUD 40.1 million as stronger revenue growth and lower credit losses more than offset that continued investment.

Speaker #1: Impairment expense fell 12% despite a materially larger book, led by stronger personal loan credit performance. Operating expenses increased to $66.7 million, largely driven by investment in direct channel marketing, credit cards, and white label partnerships.

David Wright: Operating expenses increased to AUD 66.7 million, largely driven by investment in direct channel marketing, credit cards, and white label partnerships. That investment is recognized immediately, while the earnings build over future periods. Expenses stabilized through the H2, while revenue grew around 12% on that prior half. That gap is operating leverage, and it is happening now. Statutory net loss after tax improved 40% to AUD 40.1 million as stronger revenue growth and lower credit losses more than offset that continued investment.

Speaker #1: That investment is recognized immediately, while the earnings are billed over future periods. Expenses stabilized through the second half, while revenue grew around 12% on that prior half. That gap is operating leverage, and it's happening now.

Speaker #1: Statutory net loss after tax improved 40% to $40.1 million. Stronger revenue growth and lower credit losses more than offset that continued investment. Normalized net loss after tax improved 74% to $4.1 million, with the second half positive at half a million, showing the quality of underlying earnings is improving.

David Wright: Normalized net loss after tax improved 74% to AUD 4.1 million, with the H2 positive at half a million, showing the quality of underlying earnings is improving. Operating cash profit was AUD 11 million, down from the AUD 23.8 million or AUD 13.7 million excluding the one-off benefit in the prior year. That step down is the investment, not the underlying engine. Operating cash profit plays a significant part in funding our growth alongside efficient funding and our corporate facility. Now on to distribution and cost. Originations grew 34% to AUD 1.23 billion. The broker and dealer network deepened, and direct-to-consumer became a genuine second channel rather than a supplement to the first. Operating costs to loan book improved to 3.2%. That is the measure of how efficiently we run our platform, and it improved even while we spent AUD 15.5 million more in OpEx.

Speaker #1: Operating cash profit was $11 million, down from $23.8 million—or $13.7 million excluding the one-off benefit—in the prior year. That step down is the investment, not the underlying engine.

Speaker #1: Operating cash profit plays a significant part in funding our growth, alongside efficient funding and our corporate facility. Now, onto distribution and cost. Originations grew 34% to $1.23 billion.

David Wright: Now on to distribution and cost. Originations grew 34% to AUD 1.23 billion. The broker and dealer network deepened, and direct-to-consumer became a genuine second channel rather than a supplement to the first. Operating costs to loan book improved to 3.2%. That is the measure of how efficiently we run our platform, and it improved even while we spent AUD 15.5 million more in OpEx.

Speaker #1: The broker and dealer network deepened, and direct-to-consumer became a genuine second channel rather than a supplement to the first. Operating costs to loan book improved to 3.2%.

Speaker #1: That is the measure of how efficiently we run our platform, and it improved even while we spent $15.5 million more in OpEx. Cost-to-income rose to 26.8% because that growth investment is front-loaded ahead of the revenue it will generate, and because yield fell in line with our higher credit quality strategy.

David Wright: Cost to income rose to 26.8% because that growth investment is front-loaded ahead of the revenue it will generate, and because yield fell in line with our higher credit quality strategy. Underlying operating leverage kept improving over the same period, which is what the 3.2% shows. The exit trend matters more than the full-year ratio. Operating costs were flat through the H2 while revenue grew around 12%. That is the operating leverage that the platform and the AI investment were built to deliver, and we expect it to keep coming through in FY27. Now on to the quality of our revenue base. Revenue of AUD 249 million is more durable than it was because of what sits behind it. Secured assets are 59% of the book. 43% of borrowers on the book are homeowners.

Speaker #1: Underlying operating leverage kept improving over the same period, which is what the 3.2% shows. The exit trend matters more than the full-year ratio. Operating costs were flat through the second half, while revenue grew around 12%.

David Wright: Operating costs were flat through the H2 while revenue grew around 12%. That is the operating leverage that the platform and the AI investment were built to deliver, and we expect it to keep coming through in FY27. Now on to the quality of our revenue base. Revenue of AUD 249 million is more durable than it was because of what sits behind it. Secured assets are 59% of the book. 43% of borrowers on the book are homeowners.

Speaker #1: That is the operating leverage that the platform and the AI investment were built to deliver, and we expect it to keep coming through in FY27.

Speaker #1: Now, onto the quality of our revenue base. Revenue of $249 million is more durable than it was because of what sits behind it. Secured assets are 59% of the book, 43% of borrowers on the book are homeowners, the average contractual term is 73 months, and the average Equifax score of 802 sits within the very good category.

David Wright: The average contractual term is 73 months, and the average Equifax score of 802 sits within the very good category. Longer-term, higher quality lending means a larger proportion of our revenue is committed rather than needing to be rewritten each year. Our net interest margin reduced to 6.5%, which was the intended consequence of the mix and pricing trade. Risk-adjusted Net Interest Margin, which is the measure we manage our business to, improved to 2.4%. FY26 originations were written above the 3.5% risk-adjusted margin. That is the number that determines where the margin goes from here, and it sits well ahead of the current portfolio average. On credit performance, net credit losses improved for a third consecutive year, down 1% to 2.4% on higher quality originations. This is also the lowest in Moneyme history.

Speaker #1: Longer-term, higher-quality lending means a larger proportion of our revenue is committed, rather than needing to be rewritten each year. Our net interest margin reduced to 6.5%, which was the intended consequence of the mix and pricing trade.

Speaker #1: Risk-adjusted net interest margin, which is the measure we manage our business to, improved to 2.4%. FY26 originations were written above the 3.5% risk-adjusted margin.

David Wright: FY26 originations were written above the 3.5% risk-adjusted margin. That is the number that determines where the margin goes from here, and it sits well ahead of the current portfolio average. On credit performance, net credit losses improved for a third consecutive year, down 1% to 2.4% on higher quality originations. This is also the lowest in MoneyMe history.

Speaker #1: That is the number that determines where the margin goes from here, and it sits well ahead of the current portfolio average on credit performance.

Speaker #1: Net credit losses improved for a third consecutive year, down 1% to 2.4% on higher-quality originations. This is also the lowest in MoneyMe's history.

Speaker #1: It was delivered alongside a 34% book growth and in a challenging macroeconomic environment that has not been easy for consumers. The improvement was led by personal loans, where write-offs fell in absolute terms on a book that grew 52%. Higher-quality originations replaced older vintages, and enhanced underwriting and collections did the rest.

David Wright: It was delivered alongside a 34% book growth and in a challenging macroeconomic environment that has not been easy for consumers. The improvement was led by personal loans, where write-offs fell in absolute terms on a book that grew 52%. Higher quality originations replaced older vintages and enhanced underwriting and collections did the rest. Reported arrears reduced to multi-year lows across both measures. Because arrears lead losses, that indicates a continuing improvement trend into FY27. Expected credit loss coverage reduced to 3.5% of the book. That reflects genuinely stronger credit performance and the asset mix, and it was achieved despite more conservative macroeconomic inputs into the model. On to funding. Total funding capacity expanded 44% to AUD 3 billion across 12 structures. An increased proportion of cheaper asset-backed securitizations in the funding mix is driving the ongoing improvement in funding costs.

Speaker #1: Reported arrears reduced to multi-year lows across both measures. Because arrears lead losses, that indicates a continuing improvement trend into FY27. Expected credit loss coverage reduced to 3.5% of the book.

David Wright: Expected credit loss coverage reduced to 3.5% of the book. That reflects genuinely stronger credit performance and the asset mix, and it was achieved despite more conservative macroeconomic inputs into the model. On to funding. Total funding capacity expanded 44% to AUD 3 billion across 12 structures. An increased proportion of cheaper asset-backed securitizations in the funding mix is driving the ongoing improvement in funding costs.

Speaker #1: That reflects genuinely stronger credit performance and the asset mix, and it was achieved despite more conservative macroeconomic inputs into the model. On to funding: total funding capacity expanded 44% to $3 billion across 12 structures.

Speaker #1: An increased proportion of cheaper asset-backed securitizations in the funding mix is driving the ongoing improvement in funding costs. Cost of funds fell to 6.6%, which is good for earnings in its own right, but the measure of our own improvement is the margin we pay above the benchmark, and that improved year on year.

David Wright: Cost of funds fell to 6.6%, which is good for earnings in its own right, but the measure of our own improvement is the margin we pay above the benchmark, and that improved year on year. Cost of funds fell half a percent compared with a 0.3% average reduction in the BBSW, meaning our funding spreads improved by 0.2%. During the year, we completed three asset-backed securitizations totaling over AUD 1 billion and executed our planned warehouse extensions on improved terms, and we established a new AUD 300 million credit card warehouse on materially better pricing than the facility it replaced and is structured to scale with the white label card programs. That reflects stronger credit performance and improved funding terms as the program has matured. These term deals and new warehouse transactions are more than just access to capital.

Speaker #1: Cost of funds fell half a percent, compared with a 0.3% average reduction in the BBSW, meaning our funding spreads improved by 0.2%. During the year, we completed three asset-backed securitizations totaling over $1 billion.

David Wright: During the year, we completed three asset-backed securitizations totaling over AUD 1 billion and executed our planned warehouse extensions on improved terms, and we established a new AUD 300 million credit card warehouse on materially better pricing than the facility it replaced and is structured to scale with the white label card programs. That reflects stronger credit performance and improved funding terms as the program has matured. These term deals and new warehouse transactions are more than just access to capital.

Speaker #1: And executed our planned warehouse extensions on improved terms, and we established a new $300 million credit card warehouse on materially better pricing than the facility it replaced.

Speaker #1: And is structured to scale with the white-label card programs. That reflects stronger credit performance and improved funding terms as the program has matured.

Speaker #1: These term deals and new warehouse transactions are more than just access to capital. They demonstrate the confidence sophisticated institutional investors place in our business, the quality of our assets, and the consistency of our execution, which is an advantage that compounds as we scale.

David Wright: They demonstrate the confidence sophisticated institutional investors place in our business, the quality of our assets, and the consistency of our execution, which is an advantage that compounds as we scale. On cash and liquidity, unrestricted cash increased to AUD 20 million from AUD 17 million, and the walk in the slide show how we got there. We generated AUD 11 million of operating cash profit, demonstrating the underlying cash generation of the business. We also released AUD 29 million of capital through more efficient term funding and improved warehouse terms. Importantly, we then put that capital back to work, investing a further AUD 36 million into loan equity. We continue to grow the portfolio while also increasing unrestricted cash. On liquidity, we have AUD 0.9 billion of undrawn facilities, providing substantial capacity to support continued loan book growth without the need for equity.

Speaker #1: On cash and liquidity, unrestricted cash increased to $20 million from $17 million, and the walk in the slides shows how we got there. We generated $11 million of operating cash profit, demonstrating the underlying cash generation of the business.

Speaker #1: We also released $29 million of capital through more efficient term funding and improved warehouse terms. Importantly, we then put that capital back to work, investing a further $36 million into loan equity.

David Wright: We also released AUD 29 million of capital through more efficient term funding and improved warehouse terms. Importantly, we then put that capital back to work, investing a further AUD 36 million into loan equity. We continue to grow the portfolio while also increasing unrestricted cash. On liquidity, we have AUD 0.9 billion of undrawn facilities, providing substantial capacity to support continued loan book growth without the need for equity.

Speaker #1: So, we continue to grow the portfolio while also increasing unrestricted cash. On liquidity, we have $0.9 billion of undrawn facilities, providing substantial capacity to support continued loan book growth without the need for equity.

Speaker #1: At the corporate level, we have $50 million of undrawn capacity at 30 June, reducing to $40 million following a $10 million drawdown in July. This, alongside ongoing cash generation and capital expected to be released through upcoming term deals, provides further capacity to fund growth.

David Wright: At the corporate level, we have AUD 50 million of undrawn capacity at 30 June, reducing to AUD 40 million following a AUD 10 million drawdown in July, which alongside ongoing cash generation and capital expected to be released through upcoming term deals, provides further capacity to fund growth. Looking forward, we expect cash generation to strengthen as the book grows, funding costs continue to improve, and the operating leverage builds. In summary, we have a track record of delivering on what we said we would do, and FY26 is no exception. The economics of this business are strengthening across every measure that matters, and we are meeting both our profit and strategic objectives. That consistency is what gives our investors confidence in where the business is heading. I will now hand back to Clay to take you through the strategy and outlook.

Speaker #1: Looking forward, we expect cash generation to strengthen as the book grows, funding costs continue to improve, and the operating leverage builds. In summary, we have a track record of delivering on what we said we'd do, and FY26 is no exception.

David Wright: In summary, we have a track record of delivering on what we said we would do, and FY26 is no exception. The economics of this business are strengthening across every measure that matters, and we are meeting both our profit and strategic objectives. That consistency is what gives our investors confidence in where the business is heading. I will now hand back to Clay to take you through the strategy and outlook.

Speaker #1: The economics of this business are strengthening across every measure that matters, and we are meeting both our profit and strategic objectives. That consistency is what gives our investors confidence in where the business is heading.

Speaker #1: I will now hand back to Clay to take you through the strategy and outlook.

Speaker #2: Thanks, Dave. I'll finish by talking about where we're heading. The strategy itself hasn't changed. What has changed is the scale at which we're executing it.

Clayton Howes: Thanks, Dave. I will finish by talking about where we are heading. The strategy itself has not changed. What has changed is the scale from which we are executing it. We are entering FY27 with stronger credit, better funding, a broader product set, more distribution, and a much more capable technology platform. Our objective remains simple, to become the first place Australians think of whenever they need finance, whether that is a personal loan, a vehicle, a credit card, or future products we have not yet launched. This slide explains an important capital allocation decision. We could optimize FY27 earnings, or we can invest behind an opportunity we believe could create substantially greater long-term value. We have chosen the second path. Building credit from acquisition comes first, rev those investments to begin contributing positively. Beyond that, cards become one of the highest returning parts of our business.

Speaker #2: We're entering FY27 with stronger credit, better funding, a broader product set, more distribution, and a much more capable technology platform. Our objective remains simple.

Clayton Howes: Our objective remains simple, to become the first place Australians think of whenever they need finance, whether that is a personal loan, a vehicle, a credit card, or future products we have not yet launched. This slide explains an important capital allocation decision. We could optimize FY27 earnings, or we can invest behind an opportunity we believe could create substantially greater long-term value. We have chosen the second path. Building credit from acquisition comes first, rev those investments to begin contributing positively. Beyond that, cards become one of the highest returning parts of our business.

Speaker #2: To become the first place Australians think of whenever they need finance, whether that's a personal loan, a vehicle, a credit card, or future products we haven't yet launched.

Speaker #2: This slide explains an important capital allocation decision. We could optimize FY27 earnings, or we can invest behind an opportunity we believe creates substantially greater long-term value.

Speaker #2: We've chosen the second path. Building credit by acquisition comes first, then revenue from those investments begins to contribute positively. Beyond that, cards become one of the highest-returning parts of our business.

Speaker #2: We're building for where the business will be in several years, not simply where it is today. This chart really brings everything together. FY27 proved the economics.

Clayton Howes: We are building for where the business will be in several years, not simply where it is today. This chart really brings everything together. FY27 proved the economics. Sorry, FY26 was our proof of our economics with our H2 inflection point. FY27 is about scaling those economics. We are guiding to an average portfolio of approximately AUD 2.2 billion and normalized NPAT, that is anywhere from breakeven to +AUD 7 million. Importantly, that guidance already includes continued investment in cards, AI, and direct distribution. We are investing today while continuing to prove profitability. That gives us considerable confidence in where the model can go beyond FY27. To conclude, FY26 was not simply another year of growth. It was the year we proved the model. We demonstrated we can grow faster, improve credit quality, strengthen funding, expand products, build new distribution, and begin converting that scale into earnings.

Speaker #2: FY26 was our proof of our economics with our second half inflection point. FY27 is about scaling those economics. We're guiding to an average portfolio of approximately $2.2 billion.

Speaker #2: And normalized NPAT, that is anywhere from break-even to a positive $7 million. Importantly, that guidance already includes continued investment in cards, AI, and direct distribution.

Clayton Howes: Importantly, that guidance already includes continued investment in cards, AI, and direct distribution. We are investing today while continuing to prove profitability. That gives us considerable confidence in where the model can go beyond FY27. To conclude, FY26 was not simply another year of growth. It was the year we proved the model. We demonstrated we can grow faster, improve credit quality, strengthen funding, expand products, build new distribution, and begin converting that scale into earnings.

Speaker #2: We're investing today while continuing to prove profitability. That gives us considerable confidence in where the model can go beyond FY27. To conclude, FY26 wasn't simply another year of growth.

Speaker #2: It was the year we proved the model; we demonstrated we can grow faster, improve credit quality, strengthen funding, expand products, build new distribution, and begin converting that scale into earnings.

Speaker #2: The business entering FY27 is larger, higher quality, more diversified, and more scalable than at any point in our history. Now, while we're proud of what we've achieved, we believe the opportunity ahead is significantly larger than what we've accomplished so far.

Clayton Howes: The business entering FY27 is larger, higher quality, more diversified, and more scalable than at any point in our history. While we are proud of what we have achieved, we believe the opportunity ahead is significantly larger than what we have accomplished so far. Thank you to our team, our customers, our funding partners, and our shareholders for all your continued support. Dave and I would now be delighted to take your questions.

Speaker #2: Now, thank you to our team, our customers, our funding partners, and our shareholders for all your continued support. Dave and I would now be delighted to take your questions.

Speaker #3: At this time, we'll begin the question-and-answer session. If you wish to ask a question, please press star, then one, on your telephone.

Operator 2: At this time, we will begin the question and answer session. If you wish to ask a question, please press star and then one on your telephones and wait for your name to be announced. If you wish to cancel your request, please press star and two. If you are on a speakerphone, we do ask that you please pick up the handset to ask your questions. Our first question today comes from Steven Sassine from Morgans. Please go ahead with your question.

Operator: At this time, we will begin the question and answer session. If you wish to ask a question, please press star and then one on your telephones and wait for your name to be announced. If you wish to cancel your request, please press star and two. If you are on a speakerphone, we do ask that you please pick up the handset to ask your questions. Our first question today comes from Steven Sassine from Morgans. Please go ahead with your question.

Speaker #3: And wait for your name to be announced. If you wish to cancel your request, please press star and two. If you are on a speakerphone, we do ask that you please pick up the handset.

Speaker #3: To ask your questions. Our first question today comes from Steven Sasin from Morgan's. Please go ahead with your question.

Speaker #2: Thank you, and good morning, gentlemen. Well done on the result. As always, a couple from me. I might just start with the first two at the same time, because it's just around costs.

Steven Sassine: Thank you, and good morning, gentlemen. Well done on the result, as always. A couple from me. I might just start with the first two at the same time because it is just around costs. Obviously, cost to income, 26.8%. I think the slide said there was investment in tech, AI, brand and growth initiatives. Can I just maybe get you guys to elaborate on each of those buckets for us? The second part of that is, are you starting to see some of these spend drive any efficiencies, be it around technology or headcount, that we will see some of these cost benefits flow through to the bottom line in the medium term?

Speaker #2: Obviously, cost to income—26.8%. I think this slide said there was investment in tech, AI, brand, and growth initiatives. Can I just maybe get you guys to elaborate on each of those buckets for us?

Speaker #2: And the second part of that is, are you starting to see some of this spend drive any efficiencies, be it around technology or headcount, that will see some of these cost benefits flow through to the bottom line in the medium term?

Speaker #4: Yeah. Hey, Steve, thanks for the question. Dave and I will both answer it in part. Now, one of the interesting aspects is we started the financial year '26 with more headcount than where we ended.

Clayton Howes: Yes. Hey, Steve. Thanks for the question. Dave and I will both answer it in part. One of the interesting aspects is we started the financial year 2026 with more headcount than where we ended. That is interesting. Partly because we have spoken about the investment in AI and automation in our processes. Whilst we grew the business by more than 34%, we reduced our headcount. We invested in brand. If you are in Melbourne or an AFL supporter of any kind, or you are domiciled here in Sydney, and that includes Greater Sydney, it is very obvious to notice that we have established a brand with a presence that is challenger mindset and focused on representing our product and the challenger status of being priced, experience, and efficiencies that banks just cannot keep up with. That message is permeating into results.

Speaker #4: Okay, that's interesting. Now, partly because we've spoken about the investment in AI and automation in our processes. Now, whilst we grew the business by more than 34%, we reduced our headcount.

Speaker #4: We invested in brand. If you are in Melbourne or an AFL supporter of any kind, or you're domiciled here in Sydney—and that includes Greater Sydney—it's very obvious to notice that we have established a brand with a presence that is challenger mindset, and focused on representing our product and the challenger status of being priced, experience, and efficiencies that banks just can't keep up with.

Clayton Howes: If you are in Melbourne or an AFL supporter of any kind, or you are domiciled here in Sydney, and that includes Greater Sydney, it is very obvious to notice that we have established a brand with a presence that is challenger mindset and focused on representing our product and the challenger status of being priced, experience, and efficiencies that banks just cannot keep up with. That message is permeating into results.

Speaker #4: And that message is permeating into results. When we receive our customer reviews, which are now sitting, I think, at about a 4.7 average out of 5 on Google star ratings, they're telling us—thank you, MoneyMe, as a common thread: thank you, MoneyMe, my loan was approved in a matter of minutes, the experience has been excellent, and your pricing has been beating the banks.

Clayton Howes: When we receive our customer reviews, which are now sitting, I think is about 4.7 average out of 5 Google star ratings, they are telling us, "Thank you, Moneyme," as a common thread, "Thank you, Moneyme. My loan was approved in the matter of minutes. The experience has been excellent, and your pricing has been beating the banks." That I am not making up. That is a consistent thread. So we think it is permeating into growth as well as resonating with the message we are trying to represent ourselves in market. The cost to income ratio, I will let Bex cover the component parts about it. But that fundamentally is a key driver for us, Steve, which is our Operating Expenses are getting cheaper, but what we are investing in is creating a larger, scalable, and a more direct business.

Clayton Howes: When we receive our customer reviews, which are now sitting, I think is about 4.7 average out of 5 Google star ratings, they are telling us, "Thank you, MoneyMe," as a common thread, "Thank you, MoneyMe. My loan was approved in the matter of minutes. The experience has been excellent, and your pricing has been beating the banks." That I am not making up. That is a consistent thread.

Speaker #4: Now, that I'm not making up. That is a consistent thread. So we think it's permeating into growth as well as resonating with the message we're trying to represent ourselves in the market.

Clayton Howes: So we think it is permeating into growth as well as resonating with the message we are trying to represent ourselves in market. The cost to income ratio, I will let Bex cover the component parts about it. But that fundamentally is a key driver for us, Steve, which is our Operating Expenses are getting cheaper, but what we are investing in is creating a larger, scalable, and a more direct business.

Speaker #4: Now, the cost to income ratio, I'll let Bex cover the component parts about it, but that fundamentally is a key driver for us, Steve, which is our operating costs are getting cheaper, but what we're investing in is creating the larger scalable and a more direct business.

Speaker #4: Hey, Steve. So, to the initial part of your question, I think outside of the CPI increase across the cost base, roughly 50/50 is, I guess, between marketing and then the cost of the infrastructure development of the new credit card and white label program.

David Wright: Hey, Steve. So to the initial part of your question. So I think, outside of CPI increase across the cost base, roughly 50/50 is, I guess, between marketing and then the cost of the infrastructure and development of the new credit card, and white label program, setting that up. So that sort of answered that question. And I think just on the cost to income, definitely it is a big point that we are making is that we are investing upfront, the revenue comes later. But importantly, when we look at it from a whole unit economics perspective, the unit economics in the long run are better through direct. Not to say that broker and dealer is not important to us, because it is significantly important. It is the basis we have grown from and will keep growing from.

Speaker #4: Setting that up, so that sort of answered that question. And I think, just on the cost to income, definitely it's a big point that we're making.

David Wright: And I think just on the cost to income, definitely it is a big point that we are making is that we are investing upfront, the revenue comes later. But importantly, when we look at it from a whole unit economics perspective, the unit economics in the long run are better through direct. Not to say that broker and dealer is not important to us, because it is significantly important. It is the basis we have grown from and will keep growing from.

Speaker #4: We're investing upfront, and the revenue comes later. But importantly, when we look at it from a whole unit economics perspective, the unit economics in the long run are better through direct.

Speaker #4: Not to say that broker and dealer is not important to us, as it's significantly important. It's the basis we've grown from, and we'll keep growing from.

Speaker #4: But really, the economics—the spend on marketing—is cheaper relative to, say, for example, the commissions and other fees that we potentially have to pay as part of our economics.

David Wright: But really, the economics, the spend on marketing is cheaper relative to, say, for example, the commissions and other fees that we potentially have to pay as part of our economics. So it is a really important point to make and really why we are focused on it.

Speaker #4: So it's a really important point to make, and really why we're focused on it.

Speaker #2: Thanks. I might just sort of ask a third one around costs, if that's all right, before I squeeze in one more. And then I'll get back in the queue.

Steven Sassine: Thanks. I might just sort of ask a third one around costs, if that is all right, before I squeeze in one more, and then hop back in queue. But if you look at the last couple of years of the CTI, it looks like the lowest print was in FY24 in recent times anyway, at 22.5%, and the medium-term target is sitting at 18% to 21%. Can you maybe just talk to what gets us there? I mean, obviously there is some pretty decent operating leverage coming through. But is there enough of a flywheel spinning within marketing we can wind that down a little bit in a couple of years? What bridges that gap and just maybe help us bridge that to 18% to 21%, if you can?

Speaker #2: But if you look at the last couple of years of the CTI, it looks like the lowest print was in FY24, in recent times anyway, at 22.5%.

Speaker #2: And the medium-term target is sitting at 18 to 21%. Can you maybe just talk to what gets us there? I mean, obviously, there's some pretty decent operating leverage coming through.

Steven Sassine: Can you maybe just talk to what gets us there? I mean, obviously there is some pretty decent operating leverage coming through. But is there enough of a flywheel spinning within marketing we can wind that down a little bit in a couple of years? What bridges that gap and just maybe help us bridge that to 18% to 21%, if you can?

Speaker #2: But is there enough of a flywheel? Enough of a flywheel spinning within marketing that we can wind that down a little bit in a couple of years?

Speaker #2: What bridges that gap? And could you maybe help us bridge that to 18% to 21%, if you can.

Speaker #4: Yeah, yeah. There's definitely a few things in that. As marketing builds and the direct channel builds, yeah, it becomes stickier. We've become more well-known.

David Wright: Yeah. There's definitely a few things in that. As marketing builds and the direct channel builds, it becomes stickier. We've become more well-known. We can actually spend less on that. It's definitely a factor that we see impacting into the future. The operating leverage, as we said, is real. It's happening now. Across the AI development that we've done, we're not actively looking at our cost base from a people perspective to reduce it. That's not what we're doing. We are doing things smarter and better. The processes, the underwriting, collection, everything across the board. There's been a significant improvement over the last 6 to 12 months, and that is carrying on into the future. So we are very comfortable that our cost base doesn't necessarily need to improve beyond where we've kind of structured at the moment.

Speaker #4: We can actually spend less on that, so it's definitely a factor that we see impacting into the future. The operating leverage, as we said, is real.

Speaker #4: It's happening now. Across the AI development that we've done—I mean, we're not actively looking at our cost base from a people perspective to reduce it.

Speaker #4: That's not what we're doing. We're trying to do we are doing things smarter and better. The processes are the underwriting, collection, everything across the board has been a significant improvement over the last 6 to 12 months.

David Wright: We are doing things smarter and better. The processes, the underwriting, collection, everything across the board. There's been a significant improvement over the last 6 to 12 months, and that is carrying on into the future. So we are very comfortable that our cost base doesn't necessarily need to improve beyond where we've kind of structured at the moment. The sales and marketing, yes, that will, and indirect will have to continue, but it will probably, as relative to the book growth or the origination, will start to come down in time.

Speaker #4: And that is carrying on into the future. So we are very comfortable that our cost base doesn't necessarily need to improve beyond where we've kind of structured it at the moment.

Speaker #4: The sales and marketing, yes, that will, and in direct, will have to continue, but it will probably, relative to the book growth or the origination, start to come down in time.

David Wright: The sales and marketing, yes, that will, and indirect will have to continue, but it will probably, as relative to the book growth or the origination, will start to come down in time.

Speaker #3: Here's the other add-on. And what is the proof of it coming down? It was the second half of the year, so our revenue growth outpaced our expense growth in the second half.

Clayton Howes: Here's the other add-on, and where's the proof of it coming down? It was the H2 of the year. So our revenue growth outpaced our expense growth in the H2, and we reached that inflection point of positive normalized profit. So we saw the H2, our cost to income ratio, what that means was significantly lower than where we've ended the year at a whole. So yeah, if you're looking for guidance, Steve, the H2 is a clear trend where that cost to income ratio has improved materially already.

Speaker #3: And we reached that inflection point of positive normalized profit. So we saw, in the second half, our cost-to-income ratio—what that means—was significantly lower than where we've ended the year as a whole.

Speaker #3: So yeah, if you're looking for guidance, Steve, the second half is a clear trend where that cost-to-income ratio has improved materially already.

Speaker #2: Super helpful. Thank you, gentlemen. One final one, then I'll jump back in queue. Maybe David, you can pick this one up for me. Looks like the weight of Stage 2 and Stage 3 receivables dropped.

Steven Sassine: Super helpful. Thank you, gentlemen. One final one then I'll jump back in the queue. Maybe, David, you can pick this one up for me. Looks like the weight of stage 2 and stage 3 receivables dropped pretty meaningfully. Even the provisioning's, what, 3.5%? So things look to be pretty good from a credit quality perspective. Maybe can you just talk to a couple of things. First, the macro overlay increasing, the reasoning behind that. Maybe part B, I guess, on a spot basis, are you seeing any sort of change, consumer behavior recently given sort of budgetary changes and what's happening with housing?

Speaker #2: Pretty meaningfully. Even the provisioning is about 3.5%, so things look to be pretty good from a credit quality perspective. Maybe can you just talk to a couple of things?

Speaker #2: First, the macro overlay—increasing the reasoning behind that. And maybe part B, I guess, on a spot basis, are you seeing any sort of change in consumer behavior recently, given budgetary changes and what's happening with housing?

Speaker #4: Yeah, okay. So, yeah, you're right. Stage 2 and 3 are significantly improved, and that is really the product of— we've talked about some of the earlier back book vintages rolling off and being replaced with what we've been originating at a significantly better credit quality.

David Wright: Yeah. Okay. So yeah, you are right. Stage 2 and 3 is significantly improved, and that is really the product of, we have talked about some of the earlier back book vintages rolling off and being replaced with what we have been originating at a significantly better credit quality. So it is just the maths behind that, right? So, we are seeing better quality. Our losses are coming down. It will naturally improve our stage 2 and 3, and particularly 3 outcomes. So that is kind of the maths behind it. I think the consumers at the moment, yes, it is sorry, around the macro overlay. Look, across the industry at the moment, we are seeing some challenges, either anecdotally or some in evidence. Our arrears have been coming off a sort of a reasonable high relative to our competitors, so we are still seeing that benefit come through.

Speaker #4: And so it's just the maths behind that, right? So we're seeing better quality, our losses are coming down. It will naturally improve our Stage 2 and 3, and particularly Stage 3, outcomes.

David Wright: Our losses are coming down. It will naturally improve our stage 2 and 3, and particularly 3 outcomes. So that is kind of the maths behind it. I think the consumers at the moment, yes, it is sorry, around the macro overlay. Look, across the industry at the moment, we are seeing some challenges, either anecdotally or some in evidence. Our arrears have been coming off a sort of a reasonable high relative to our competitors, so we are still seeing that benefit come through.

Speaker #4: So that's kind of the maths behind it. I think the consumers at the moment—yes, sorry, around the macro overlay—look, across the industry at the moment, we are seeing some challenges.

Speaker #4: Either anecdotally or in some evidence, we've been coming—our rears have been coming off a sort of reasonable high relative to our competitors.

Speaker #4: So, we're still seeing that benefit come through, but I think the market generally has seen that. And look, it's prudent to increase the overlay.

David Wright: But I think the market generally has seen that, and look, it is prudent to increase the overlay, and I believe across the industry, it is the same. So, auditors, et cetera, are requiring it. We are requiring it. It is just prudent that we are doing it. So we have increased it quite significantly. Although the outcome is still we have come down, and like we have sort of pointed out in the presentation, we have had a really significant improvement in our personal loan loss rates and arrears. So that is really what has driven it.

Speaker #4: And I believe, across the industry, it's the same. And so, auditors, etc., are requiring it. We're requiring it. It's just prudent that we're doing it.

Speaker #4: So we have increased it quite significantly. Although the outcome is still we've come down, and like we've sort of pointed out in the presentation, we've had a really significant improvement in our personal loan loss rates and arrears.

Speaker #4: So, that's really what's driven it.

Speaker #3: And just to add to that, we haven't been standing still. We've been using data intelligence and our artificial intelligence credit decisioning that navigates through what we can see are serviceable lower losses, reducing fraud, and being ahead of the curve.

Clayton Howes: Just to add to that, we have not been standing still. We have been using data intelligence and our artificial intelligence credit decisioning that navigates through what we can see are serviceable, lower losses, reducing fraud, and being ahead of the curve. So it is not surprising for us to see that the portfolio is increasing in quality. Now, in absence of the market challenges, so let us take market challenges to the side, our value proposition has been compounding. Our cheaper capital has given us better pricing whilst protecting margins. Better pricing that is giving us better quality customers. These are homeowners, 800-plus Equifax profile customers that are electing to choose Moneyme and other alternate lenders to banks. And we are getting that share of the market that we may not have been accessible to when our pricing and our cost of capital was high. So this is all compounding, and I will repeat it.

Speaker #3: So, it's not surprising for us to see that the portfolio is increasing in quality. Now, in the absence of market challenges, right? So let's take market challenges to the side.

Speaker #3: Our value proposition has been compounding. Our cheaper capital has given us better pricing. While protecting margins, better pricing has given us better quality customers.

Clayton Howes: Our cheaper capital has given us better pricing whilst protecting margins. Better pricing that is giving us better quality customers. These are homeowners, 800-plus Equifax profile customers that are electing to choose MoneyMe and other alternate lenders to banks. And we are getting that share of the market that we may not have been accessible to when our pricing and our cost of capital was high. So this is all compounding, and I will repeat it.

Speaker #3: These are homeowners with 800-plus Equifax profiles—customers that are electing to choose MoneyMe and other alternative lenders to banks. And we're getting that share of the market that we may not have been accessible to when our pricing and our cost of capital was high.

Speaker #3: So this is all compounding. And I'll repeat it: better credit decisioning using artificial intelligence, cheaper pricing, giving us access to a borrower characteristic and credit quality that we wouldn't have otherwise been able to reach some time ago.

Clayton Howes: Better credit decisioning using artificial intelligence. Cheaper pricing giving us access to a borrower characteristic and credit quality that we would not have otherwise been able to reach some time ago. And that, again, is compounding why these results are the way they are. Now, we do not expect that just to stop now, by the way. Yeah, we have got to take a macro overlay because we can all see that it is a challenged market. But we are expecting, like we have already seen, this is an all-time low loss rate that this business has had. We do not expect to end there. We expect that to continue to improve even further.

Speaker #3: And that, again, is compounding why these results are the way they are. Now, we don’t expect that to just stop now, by the way.

Clayton Howes: Now, we do not expect that just to stop now, by the way. Yeah, we have got to take a macro overlay because we can all see that it is a challenged market. But we are expecting, like we have already seen, this is an all-time low loss rate that this business has had. We do not expect to end there. We expect that to continue to improve even further.

Speaker #3: Yeah, we've got to take a macro overlay because we can all see that it's a challenged market. But we're expecting, like we have already seen, this is an all-time low loss rate that this business has had.

Speaker #3: We don't expect to end there. We expect that to continue to improve even further.

Speaker #2: Excellent. That's it for me. Thanks, Clay. Thanks, David. Well done.

Steven Sassine: Excellent. That's it for me. Thanks, Clay. Thanks, David Wright. Well done.

Speaker #1: Once again, if you wish to ask a question, please press star then one, and wait for your name to be announced. Our next question comes from Andrew Johnson from MST Access.

Operator 2: Once again, if you wish to ask a question, please press star and then one and wait for your name to be announced. Our next question comes from Andrew Johnston from MST Access. Please go ahead with your question.

Operator: Once again, if you wish to ask a question, please press star and then one and wait for your name to be announced. Our next question comes from Andrew Johnston from MST Access. Please go ahead with your question.

Speaker #1: Please go ahead with your question.

Speaker #5: Good morning, gentlemen. Well done on a good result. Those trends are really starting to come through that we started to see emerge a little while ago.

Andrew Johnston: Good morning, gentlemen. Well done on a good result. Those trends are really starting to come through that we started to see emerge a little while ago. Good to see that. So a couple of questions. First up, on the direct-to-consumer product that I think has just been released, this is the one for buying used cars, not from a dealer, so direct-to-consumer product. Can you just confirm that that's been released and whether it's been released long enough to see how that's tracking?

Speaker #5: So, good to see that. So, a couple of questions. First up, on the direct-to-consumer product that I think has just been released. So, this is the one for buying used cars—not from a dealer, so direct-to-consumer product.

Speaker #5: Can you just confirm that that's been released, and whether you're getting any—whether it's been released long enough to see how that's tracking?

Speaker #4: Thanks, Andrew. That's a really good question. It's actually one of the larger parts of the car market that we've never had access to. This is for a customer who typically wants to buy a car and has a choice to buy it privately—suburban private sales, buying a car through that—or walk into a dealership prepared with cash or a credit facility, ready to buy the car.

Clayton Howes: Thanks, Andrew. Really good question. It's one of the larger parts of the car market that we've never had access to. This is for a customer who wants to buy a car that typically, well, has choice to buy privately, suburban private sales, buying a car through that, or walk into a dealership prepared with cash or a credit facility ready to buy the car. So it services that customer's objective as opposed to one, finding a car, then talking to potentially a broker and working their way through what they can afford. It's giving them the confidence of finance prior to purchasing. That's an interesting one.

Speaker #4: So, it services that car, then talks to potentially a broker, and works their way through what they can afford. It's giving them the confidence of finance prior to purchasing.

Speaker #4: So that's an interesting one. Now, one of our favorite parts that we spoke about is that we are a multi-product platform. And our existing customers—which we now have over half a million Australians—are walking into dealership environments, and then going through some intermediary to get access to finance. It's luck of the draw if it's us or if it's somebody else that they get sold to.

Clayton Howes: Now, one of our favorite parts for us that we spoke about is we're a multi-product platform. Our existing customers, which we now have over half a million Australians, are walking into dealership environments and then going through some intermediary to get access to finance, and it's luck of the draw if it's us or if it's somebody else that they get sold to. This is changing that, and the economics are obviously favorable. We've got a large customer base. We know their creditworthiness, we value their loyalty, and we're offering them the opportunity to establish their car finance and have the power to walk into a dealership or buy through private sales and be really efficient for us and their customer.

Speaker #4: This is changing that. And the economics are obviously favorable. We've got a large customer base, we know their creditworthiness, we value their loyalty, and we're offering them the opportunity to establish their car finance and have the power to walk into a dealership or buy through private sales. That will be really efficient for us and the customer.

Clayton Howes: This is changing that, and the economics are obviously favorable. We've got a large customer base. We know their creditworthiness, we value their loyalty, and we're offering them the opportunity to establish their car finance and have the power to walk into a dealership or buy through private sales and be really efficient for us and their customer.

Speaker #4: So it's that evolution of multi-products, removing friction points, and being really, really technology-led to be able to, for that customer, buy from the dealership, drive it away—it's minutes.

Clayton Howes: It's that evolution of multi-products, removing friction points and being really, really technology-led to be able for that customer to buy from the dealership, drive it away. It's minutes when they decide to buy the car. It's a pretty exciting experience. We are only literally a couple of weeks in and the proof has been happening. Our existing customers have existing customers with products, personal loans or credit cards, have, on their own accord, seen that we've got this product on offer. This marketing message is still being rolled out, and they've chosen to elect their next car purchase using Moneyme Direct. Efficient, fast, real strong economics, no intermediary broker fees or any of that stuff that goes into it. We get this customer with more than one product at Moneyme. Sticky, really confident for us, proof of loyalty. That's what we love.

Speaker #4: When they decide to buy their car, it's a pretty exciting experience. We are literally only a couple of weeks in, and the proof has been happening.

Speaker #4: Our existing customers—who have existing products, personal loans, or credit cards—have, on their own accord, seen that we've got this product on offer. This marketing message is still being rolled out, and they've chosen to elect their next car purchase using MoneyMe's direct.

Clayton Howes: Our existing customers have existing customers with products, personal loans or credit cards, have, on their own accord, seen that we've got this product on offer. This marketing message is still being rolled out, and they've chosen to elect their next car purchase using MoneyMe Direct. Efficient, fast, real strong economics, no intermediary broker fees or any of that stuff that goes into it. We get this customer with more than one product at MoneyMe. Sticky, really confident for us, proof of loyalty. That's what we love.

Speaker #4: Efficient, fast, real strong economics—no intermediary broker, broker fees, or any of that stuff that goes into it. And we get this customer with more than one product at MoneyMe: sticky, real confidence for us—proof of loyalty.

Speaker #4: That's what we love. It's building the ecosystem really efficiently, servicing the existing customers, and creating that one-platform ecosystem for them. And so yes, it's very difficult to explain the size of it already in action, and already customers are interacting and have established their first or second car purchases through that offer.

Clayton Howes: It's building the ecosystem, really efficiently servicing the existing customers and creating that one platform ecosystem for them. Yes, it's very difficult to explain the size of it, because we're only a couple of weeks in, but it's already in action and already customers are interacting and have established their first or second car purchases through that offer.

Andrew Johnston: That's interesting. I can't remember the number. I think it might've been 21% or 23% of existing customers, or customers that have more than one Moneyme product. Was that the number?

Andrew Johnston: That's interesting. I can't remember the number. I think it might've been 21% or 23% of existing customers, or customers that have more than one MoneyMe product. Was that the number?

Speaker #5: I could just that's interesting. And I can't remember the number. I think it might have been 21 or 23 percent of existing customers. Or customers that have more than one Moneyme product.

Speaker #5: Was that the number?

Speaker #4: That's the number. 23%.

Clayton Howes: That's the number, 23%.

Speaker #5: Right. Do you expect that to increase? And how important a part of that is in your thinking about the business?

Andrew Johnston: Right.

Clayton Howes: Right.

Andrew Johnston: Do you expect that to increase and how important a part of that is in your thinking about the business?

Speaker #4: I think the only thing that's going to be interesting about that number is that we're adding so many first-time customers to the program.

Clayton Howes: I think the only thing that's going to be interesting about that number is we're adding so many first-time customers to the program. We've expanded our product set, our credit card. So we're getting first-time customers that, in effect, might actually reduce that number from a headline rate. But actually, what we'll see normally saturate, and our target is this, that at least 35% of our customers have had at least one product with us or hold at least one product with us. Which makes sense. Like I explained the car, it's an easy cross-sell and it's an add-on. Got a car, would you like a credit card? You got a personal loan? We're servicing you. 43% are homeowners. We're doing green energy upgrades, so financing solar and other things like that, battery power packs.

Speaker #4: So we've expanded our product set, our credit cards. So we're getting first-time customers. That, in effect, might actually reduce that number from a headline rate.

Speaker #4: But actually, what we normally see saturate in our target is this: at least 35% of our customers have had at least one product with us, or hold at least one product with us, which makes sense.

Speaker #4: Like I explained, the car is an easy cross-sell, and it's an add-on. Got a car? Would you like a credit card? You've got a personal loan.

Clayton Howes: Like I explained the car, it's an easy cross-sell and it's an add-on. Got a car, would you like a credit card? You got a personal loan? We're servicing you. 43% are homeowners. We're doing green energy upgrades, so financing solar and other things like that, battery power packs. There's really complementary elements to our product set that we will see that share of the customer's wallet increase.

Speaker #4: We're servicing you. Forty-three percent are homeowners. We're doing green energy upgrades, so financing solar and other things like that—battery-powered packs. So there's really complementary elements to our product set, and we will see that share of customers likely increase.

Clayton Howes: There's really complementary elements to our product set that we will see that share of the customer's wallet increase.

Speaker #5: Yeah, okay. No, that makes sense. Can I just go to the medium-term targets on page 30? I just want to—so, it looks like there are some new metrics there.

Andrew Johnston: Yeah, okay. No, that makes sense. Can I just go to the medium-term targets on page 30? Looks like there is some new metrics there. But I notice the secured assets, the target for the secured assets on the book, has decreased to 51% to 57% from 55% to 60%. Is that a function of your views around the growth in the credit card business, or is there something else going on there?

Speaker #5: But I noticed the secured assets, the target for the secured assets on the book, has decreased to 51–57 percent from 55–60.

Speaker #5: Is that a function of your views around the growth in the credit card business, or is there something else going on there?

Speaker #4: Yeah, Andrew. Yeah, exactly right. So we pointed out that our strategy is around diversifying the mix of our book. And so although auto is a significant part of the book and remains a good basis, particularly around the credit quality of our overall loan book, along with personal loans' improvement in credit quality and where they’re landing now, naturally, when you bring on a new unsecured product like the credit card, that’s just going to increase the overall proportion of unsecured.

David Wright: Yeah, Andrew. Yeah, exactly right. We pointed out that our strategy is around diversifying the mix of our book. Although Autopay is a significant part of the book and remains a good basis, particularly around credit quality of our overall loan book, along with personal loans improvement in credit quality and where they are landing now. Naturally then, when you bring on a new unsecured product like the credit card, that is just going to increase the overall proportion of unsecured. So it is just naturally the outcome that we are seeing over the medium term, that that would be the outcome. But the upside of all that is, yes, our losses may be slightly impacted, but again, still the trend is down. Our risk-adjusted Net Interest Margin increases with this kind of mix change.

David Wright: Naturally then, when you bring on a new unsecured product like the credit card, that is just going to increase the overall proportion of unsecured. So it is just naturally the outcome that we are seeing over the medium term, that that would be the outcome. But the upside of all that is, yes, our losses may be slightly impacted, but again, still the trend is down. Our risk-adjusted Net Interest Margin increases with this kind of mix change.

Speaker #4: So it's just naturally the outcome that we're seeing over the medium term—that that would be the outcome. But the upside of all that is, yes, a loss is maybe slightly impacted, but again, still the trend is down.

Speaker #4: Our risk-adjusted returns increase with this kind of mixed change.

Speaker #5: Right.

Andrew Johnston: Right. Okay.

Speaker #6: Implement that.

Speaker #3: Right. Okay.

Speaker #6: Just to complement that, these are the right metrics when you think about the balanced portfolio. Cards are very sticky. When you build a credit card portfolio, people don't end their credit card balance or journey after, like a car—where you have a behavioral life for four years, you sell the vehicle, etc.

Clayton Howes: Just to complement that, these are the right metrics when you think about the balanced portfolio. Cards are very sticky. When you build a credit card portfolio, people do not end their credit card balance or journey after, like a car, behavioral life of four years, you sell the vehicle, et cetera. Or personal loans, natural behavioral life could be five years. Credit cards, in our experience, are very sticky and those loan book balances stay. So what happens here is we are not prioritizing vehicles. Car finance is a high priority for us. We are expanding our distribution, like we said, and so it will grow. When we have passed that AUD 3 billion book balance, it has grown with cars. But what ends up happening is that customer lifetime value, because of credit cards' stickiness, the book balance naturally adds to the mix.

Speaker #6: For personal loans, natural behavioral life could be five years. Credit cards, in our experience, are very sticky, and those loan book balances stay. So what happens here is we're not prioritizing vehicles.

Clayton Howes: Credit cards, in our experience, are very sticky and those loan book balances stay. So what happens here is we are not prioritizing vehicles. Car finance is a high priority for us. We are expanding our distribution, like we said, and so it will grow. When we have passed that AUD 3 billion book balance, it has grown with cars. But what ends up happening is that customer lifetime value, because of credit cards' stickiness, the book balance naturally adds to the mix.

Speaker #6: Car finance is a high priority for us. We're expanding our distribution, like we said, and so it will grow. And when we've passed that $3 billion book balance, it's grown with cars.

Speaker #6: But what ends up happening is that customer lifetime value, because of credit card stickiness, and the book balance naturally adds to the mix.

Speaker #5: Right. Okay, and just a final question. So, where do you—what are the metrics within your business, or where do you look in your business to keep track of some of the potential macro weakness coming through?

Andrew Johnston: Right. Okay. Just a final question. What are the metrics within your business, or where do you look in your business to keep a track on some of the potential macro weakness coming through? If you think about our retail analyst, Craig Woolford, is warning that the Q4 of this calendar year, so the December quarter this year, is potentially the riskiest quarter. So where in your metrics would you expect to see that? Would that be a slowdown in the loan book or a slowdown in originations or would it be some step up in losses?

Speaker #5: So if you think about it, our retail analyst Craig Wolford is warning that the fourth quarter of this calendar year—so, the December quarter this year—is potentially the riskiest quarter.

Speaker #5: So where in your metrics would you expect to see that? Would that be a slowdown in the loan book, or a slowdown in originations, or would it be some step up in losses?

Speaker #4: So the first macro view, we have a we have the first advantage of seeing borrowers' attitudes and their serviceability through credit applications. Now, this is now Moneyme now represents a large scale of Australia's consumer credit market, right?

Clayton Howes: The first macro view, we have the first advantage of seeing borrowers' attitudes and their serviceability through credit applications.

Andrew Johnston: Right.

Clayton Howes: Moneyme now represents a large scale of Australia's consumer credit market, right? In the past, we'd see typically credit profiles that would afford us, on a conservative basis, to lend to about one in four, one in five people that apply. Now, serviceability, inflation pressures have absolutely taken a turn for what those, if you like, those metrics that I just described, one in four and one in five, to a staggering one in 10, one in 12. That's not just us. That's industry. So what we're seeing on a like-for-like basis is we're seeing that the consumer is challenged. For us, we've chosen, by design, to move up that value spectrum. Not everyone is dealt with the same challenges that the RBA and inflationary pressures have imposed on people.

Clayton Howes: MoneyMe now represents a large scale of Australia's consumer credit market, right? In the past, we'd see typically credit profiles that would afford us, on a conservative basis, to lend to about one in four, one in five people that apply. Now, serviceability, inflation pressures have absolutely taken a turn for what those, if you like, those metrics that I just described, one in four and one in five, to a staggering one in 10, one in 12.

Speaker #4: So in the past, we’d typically see credit profiles that would, on a conservative basis, afford us to lend to about one in four, or one in five, people that apply.

Speaker #4: Right? Now, serviceability inflation pressures have absolutely taken a turn for what—those, if you like, those metrics that I just described—one in four and one in five, to a staggering one in 10, one in 12.

Speaker #4: Now, that's not just us, that's industry. So what we're seeing on a like-for-like basis is that the consumer is challenged now. For us, we've chosen by design to move up that value spectrum. Not everyone is dealing with the same challenges that the RBA and inflationary pressures have imposed on people.

Clayton Howes: That's not just us. That's industry. So what we're seeing on a like-for-like basis is we're seeing that the consumer is challenged. For us, we've chosen, by design, to move up that value spectrum. Not everyone is dealt with the same challenges that the RBA and inflationary pressures have imposed on people.

Speaker #4: There are different parts of our Australian segments that are certainly doing it tougher than others, right? And it's a bit of a K economy, where we're seeing that—potentially described in this way—the more challenged, lower socioeconomic part of our market is doing it even more tough than, if you like, the middle order.

Clayton Howes: There are different parts of our Australian segments that are certainly doing it more tougher than others. It's a bit of that K-shaped economy where we're seeing that the, potentially described in this way, the more challenged, lower socioeconomic part of our market is doing it even more tough than, if you like, the middle order. We are operating in that segment where we've got very good Equifax profiles, mature customer base, and importantly, what we look at in our business is the diversification of these customers. So there's no single concentration risk in an employment sector. An aged profile demographic, we manage very clearly the diversification where we can see unemployment is certainly a stretch in certain sectors. We certainly manage towards that by having low concentration in any particular segment.

Speaker #4: Now, we are operating in that segment where we've got very good Equifax profiles, a mature customer base, and importantly, what we look at in our business is the diversification of these customers.

Clayton Howes: We are operating in that segment where we've got very good Equifax profiles, mature customer base, and importantly, what we look at in our business is the diversification of these customers. So there's no single concentration risk in an employment sector. An aged profile demographic, we manage very clearly the diversification where we can see unemployment is certainly a stretch in certain sectors. We certainly manage towards that by having low concentration in any particular segment.

Speaker #4: So there's no single concentration risk in an employment sector. And the age profile demographic—we manage very clearly the diversification, where we can see unemployment is certainly a stretch in certain sectors.

Speaker #4: We certainly manage towards that by having low concentration in any particular segment. Now, another part of our business that's quite different to, if you like, our peer set in the traditional landscape, is we have a variable rate product.

Clayton Howes: Now, another part of our business that is quite different to, if you like, our peer set in the traditional landscape, is we have a variable rate product. What we do is we price appropriately, and we also manage our losses and protection of that risk-adjusted NIM effectively. So whereas RBA prices might cause a challenge on NIM pressures in this type of business, we are protected in many ways, like banks with their mortgage books, have variable rate products, and they protect themselves with a risk-adjusted profile. So similar attributes in that regard. I might give to Dave just to answer if he has got anything to add to it.

Speaker #4: Now, what we do is we price appropriately, and we also manage our losses and protection of that risk—adjusted and effectively. So, as RBA prices might cause a challenge on NIM pressures in this type of business, we are protected in many ways. Like banks with their mortgage books, they have variable rate products, and they protect themselves with a risk-adjusted profile.

Clayton Howes: So whereas RBA prices might cause a challenge on NIM pressures in this type of business, we are protected in many ways, like banks with their mortgage books, have variable rate products, and they protect themselves with a risk-adjusted profile. So similar attributes in that regard. I might give to Dave just to answer if he has got anything to add to it.

Speaker #4: So, similar attributes in that regard. Now, I might give it to Dave, just to answer if he's got anything to add to it.

Speaker #7: I think, just adding more specifically—there is a suite of KPIs, to your question, Andrew, that we are constantly looking at on a daily basis.

David Wright: I think just adding more specifically, there is a suite of KPIs to your question, Andrew, that we are constantly looking at on a daily basis. Again, Clay talked about the data and all that that we use to price. It is across all our credit and monitoring that we do. No, we are well ahead of it. So obviously through underwriting and through the life, we are well ahead of where things are going in trends, and then able to deal with those sooner than probably most can.

Speaker #7: And again, Clay talked about the data and all that we use. I mean, it is across all our credit and monitoring that we do.

Speaker #7: So now, we're well ahead of it. So prior to this, obviously, through underwriting and through the life, we are well ahead of where things are going in terms of trends.

Speaker #7: And then able to deal with those sooner than probably most can.

Speaker #5: Okay. And just to reiterate the previous question—to what extent are you seeing any changes to date?

Andrew Johnston: Okay. I suppose just to reiterate the previous question, to what extent are you seeing any changes to date?

Speaker #4: I think I gave reference to.

Clayton Howes: I think I gave reference to-

Andrew Johnston: Like in the last few weeks.

Speaker #5: Few weeks.

Clayton Howes: I think that would be too reactional to see things in a few weeks. We are seeing a continuous. We think that this consumer challenge and the socioeconomic consumer market in that K-shaped economy I have mentioned has been existing for way past a few weeks. Analysts might be calling it out now, but this has existed for, and progressively existing for at least two years.

Speaker #4: I think that would be too reactional to see things into a few weeks. We're seeing a continuous — we think that this consumer channel challenge and the socioeconomic consumer market in that key economy I've mentioned has been existing for way past a few weeks.

Speaker #4: Analysts might be calling it out now, but this has existed for, and has been progressively existing for, at least two years.

Speaker #5: Right. Okay.

Andrew Johnston: Right. Okay.

Clayton Howes: Just shot up. Rents have been progressively going up.

Speaker #4: Just shut up. Rents have been progressively going up. Sorry, Andrew. It's conversations I've had, particularly, say, with auditors. We talk about macroeconomic overlays and stuff like that.

David Wright: Sorry, Andrew. It's conversations I've had, particularly, say, with auditors, we talk about macroeconomic overlays and stuff like that.

Andrew Johnston: Yeah.

Speaker #4: I would just say, "Hold on. This hasn't just suddenly happened." I've felt it for quite some time, and it's been progressively dialing up a little bit, but actually, the cost of living has been there for a while.

David Wright: I would just say, hold on, this hasn't just suddenly happened. I've felt it for quite some time, and it's progressively dialing up a little bit.

Andrew Johnston: Actually, the cost of living has been there for a while. We're kind of in it. We have been in it.

Speaker #4: I mean, we're kind of in it. We have been in it. So the good thing about this is, like I said, not everyone is experiencing the same impact from the RBA's rate hikes and inflationary pressures or rental pressures.

Clayton Howes: The good thing about this is, like I said, not everyone is experiencing the same impact from RBA's rate hikes and inflationary pressures or rental pressures. Not everyone's impacted in the same way. So we've got a pretty strong selective criteria. I would love us to see it normalize where the Australians, 1 in 4, 1 in 5 credit applications are considered equal in weighting and approved appropriately. We've probably got a bit more to go before we see that economic pressure subside.

Speaker #4: Not everyone is impacted in the same way, so we've got a pretty strong selective criteria. I would love to see it normalize, where for Australians, one in four or one in five credit applications are considered equal in weighting and approved appropriately.

Speaker #4: But we've probably got a bit more to go before we see that economic pressure subside.

Speaker #5: Yeah, okay. And so just going back to that one in four—so when you said historically it was one in four or one in five, and now you're saying it's sort of more like one in 10 or one in 12 of the applications that you're approving.

Andrew Johnston: Yeah, okay. Just going back to that one in 4, so when you said historically it was one in 4, one in 5, and now you are saying it is more like one in 10 or one in 12 of the applications that you are approving. Over what period is that comparison?

Speaker #5: Over what periods that comparison?

Speaker #4: I'll go back to pre-RBA economic pressures that they've applied to us. So I'd go back as far as, say, three years ago. We started emerging into that one-in-six, one-in-seven, and then very clearly, through mortgage stresses, rental hikes, transport, and energy costs, that's clearly changed the serviceability of customers, and their borrowing capacity has changed.

Clayton Howes: I will go back to pre-RBA's economic pressures that they have applied to us. So I would go back as far as, say, 3 years ago. We started emerging into that one in 6, one in 7, and then very clearly through mortgage stresses, rental hikes, transport, and energy costs. Clearly, that has changed the serviceability of customers and their borrowing capacity has changed. Now, it is not all doom and gloom. People are managing. They are potentially managing their travel plans a bit differently. Their aspirational plans are maybe altering a little. It is not all doom and gloom insofar as how credit is seeing it. People are still responsible. We have just been very cautious about how we are choosing to lend to people and where that segment exists that we see is quite healthy and maintains credibility with strong employment sectors.

Speaker #4: Now, it's not all doom and gloom. People are managing. They're potentially managing their travel plans a bit differently. Their aspirational plans are maybe altering a little.

Clayton Howes: Now, it is not all doom and gloom. People are managing. They are potentially managing their travel plans a bit differently. Their aspirational plans are maybe altering a little. It is not all doom and gloom insofar as how credit is seeing it. People are still responsible. We have just been very cautious about how we are choosing to lend to people and where that segment exists that we see is quite healthy and maintains credibility with strong employment sectors.

Speaker #4: It's not all doom and gloom, insofar as how credit is seeing it. People are still responsible. We've just been very cautious about how we're choosing to lend to people.

Speaker #4: And where that segment exists, we see it as quite healthy and maintaining credibility with strong employment sectors.

Speaker #5: Yeah. Clearly, I mean, you're getting some pretty, very, very solid growth coming through, in spite of all that. Okay, thanks very much. I appreciate your time.

Andrew Johnston: Yeah, clearly, you are getting some pretty, very solid growth coming through in spite of all that. Okay, thanks very much. I appreciate your time. Thank you.

Speaker #5: Thank you.

Speaker #2: And, seeing no further questions at this time, I’d like to hand the floor back to Mr. House for closing remarks.

Operator 2: Showing no further questions at this time, I would like to hand the floor back to Mr. Howes for closing remarks.

Operator: Showing no further questions at this time, I would like to hand the floor back to Mr. Howes for closing remarks.

Speaker #4: I'd just like to say thank you for everyone's time and your interest in MoneyMe. We look forward to updating everyone on our progress as we go through FY27.

Clayton Howes: I'd just like to say thank you for everyone's time, your interest in Moneyme, and we look forward to updating everyone else on the progress as we go through FY27. Hope everyone has a great day.

Clayton Howes: I'd just like to say thank you for everyone's time, your interest in MoneyMe, and we look forward to updating everyone else on the progress as we go through FY27. Hope everyone has a great day.

Speaker #4: Hope everyone has a great day.

Operator 2: That does conclude our conference for today. We thank you for participating. You may now disconnect your lines.

Operator: That does conclude our conference for today. We thank you for participating. You may now disconnect your lines.

Browse all earnings call transcripts

Q4 2026 Moneyme Ltd Earnings Call

Request TrialDemo

Moneyme

Earnings