Pepper Money (ASX:PPM) announced a landmark financial performance for the full year ended Dec. 31, 2025, characterised by record-breaking growth across its core lending operations.
The non-bank lender reported that total assets under management grew to $21.8 billion, the highest in the company's history, representing a 14% increase over the previous year.
The growth was fueled by record originations of $10.3 billion, a massive 47% jump compared to 2024.
The company’s bottom line remained robust, with pro-forma net profit after tax reaching $104.8 million, a 7% increase on the prior comparative period.
Despite a slight 2% dip in net interest income due to a shift toward prime mortgages and increased whole loan sales, Pepper Money expanded its net interest margin to 2.05%, up 8 basis points.
The margin expansion was largely driven by the asset finance division, which saw its NIM climb to 2.85%.
Operational efficiency also improved, with the cost-to-income ratio sharpening to 50.5%.
On the funding side, the company set new benchmarks by raising $7 billion through securitisation and whole loan sales, while maintaining a healthy warehouse capacity of $13.3 billion.
Pepper Money declared a final dividend of 7.8 cents per share, bringing the total 2025 dividends to 26.7 cents—an annualised yield of 16.1%.
At the time of reporting, Pepper Money's share price was $2.36.