Surging loan growth and easing losses have helped the non‑bank lender reach profitable scale amid tight credit conditions.
Digital non‑bank lender MONEYME has reported a “step‑change” in its March 2026 quarter, lifting originations and expanding its loan book to $1.90 billion.
For the third quarter of the financial year 2026, MONEYME wrote $325 million in new loans, up 43 per cent on the same period a year earlier and $50 million higher than the December 2025 quarter.
The company’s loan book reached $1.90 billion as at 31 March, compared with $1.75 billion three months earlier and $1.47 billion a year ago, underscoring how rapidly volumes are compounding.
That growth sits within a broader environment where major banks have moderated risk appetite in parts of consumer and vehicle finance, opening space for non‑banks to capture a growing share of the market.
CEO and managing director Clayton Howes said the quarter marked a clear turning point in the business as both volume and earnings momentum accelerated.
“The third quarter marked a step‑change in performance with originations increasing by $50 million quarter‑on‑quarter and the loan book reaching $1.90 billion,” he said.
“This represents an inflection point, delivering a positive Normalised NPAT in the quarter, with revenue growth outpacing costs and driving operating leverage.”
Margin pressure but better risk‑adjusted returns
While the balance sheet is growing, MONEYME’s net interest margin eased to 6.7 per cent at 31 March, down from 7.7 per cent a year earlier and 6.8 per cent in the previous quarter.
That modest quarterly decline highlights the competitive and funding pressures facing non‑banks even as they lift volumes.
However, the lender is placing more emphasis on risk‑adjusted returns, saying that lower losses and reduced funding costs are offsetting the thinner headline margin.
MONEYME said its strategy of managing product mix and credit quality was delivering better economic returns.
Credit performance improves despite headwinds
The March quarter showed a clear improvement in portfolio quality even as cost‑of‑living pressures and higher rates continue to weigh on household budgets.
Ninety-day-plus day arrears fell to 84 basis points, down from 131 bps a year ago and 96 bps in the December quarter, while net credit losses declined to 2.6 per cent from 3.7 per cent over the year and 2.9 per cent quarter on quarter.
Howes said the improving arrears and loss metrics reflected a deliberate tilt towards lower‑risk segments, particularly in auto lending.
“Despite interest rate and inflation pressures, our credit performance remains strong with loss rates declining as we continue to focus on secured vehicle finance and high credit quality segments,” he said.
“This, alongside a predominantly variable interest rate loan book enables us to absorb these market pressures, maintain risk-adjusted NIM and price effectively for capital preservation.”
Market share push in ‘under‑served’ niches
MONEYME booked gross revenue of $62 million for Q3 FY26, up from $53 million a year earlier and $60 million in the prior quarter.
The lender said it believed there was further room to grow by targeting pockets where traditional players were slower or more constrained, particularly in fast‑turnaround and secured vehicle and consumer finance.
Howes framed the growth strategy as a concerted push into these underserved niches.
“We continue to capture market share in under-served segments through fast, innovative and well-priced products and outstanding customer service,” he said.
Looking ahead, MONEYME said it remained on track to deliver its FY26 strategic priorities.
[Related: Personal lenders report strong lending surge as banks retreat]
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