What was the key takeaway from the Harmoney (ASX:HMY) 3Q26 update?

Harmoney reaffirmed its FY26 guidance, stating it is on track to deliver a Cash NPAT (Net Profit After Tax) of $13 million.

Is Harmoney (ASX:HMY) currently profitable?

Yes, Harmoney is profitable on a cash basis, reporting a Cash NPAT of $5.7 million in FY25 and forecasting $13 million for FY26.

How fast is the Harmoney (ASX:HMY) loan book growing?

The group’s total loan book grew by 10% to reach $879 million as of 31 March 2026. Growth was particularly strong in Australia, where the loan book increased by 17%, now making up 62% of the total portfolio.

What are the bull and bear points for Harmoney (ASX:HMY) after this news?

The bull case focuses on the 128% projected profit growth and expanding Net Interest Margins (NIM), which rose to 10.3%. The bear case involves macro-economic sensitivity; while credit quality is currently stable, a downturn in employment could impact the 3.8% credit loss rate.

How healthy are Harmoney’s (ASX:HMY) credit metrics and arrears?

Harmoney reported disciplined credit management despite rapid loan growth. The 90+ day arrears improved to 0.62%, down from 0.69% in the prior year, indicating a high-quality borrower profile.

What does "operational leverage" mean for Harmoney (ASX:HMY) investors?

Operational leverage refers to Harmoney’s ability to grow revenue faster than expenses. This was evidenced by the cost-to-income ratio improving to 18.2% from 18.4%.

What is Harmoney’s (ASX:HMY) strategy for further expansion?

Management is focusing on scaling its core personal loan products while pivoting toward the car loan market. To support this, the company expanded its warehouse credit capacity to over $1 billion, including a new term sheet from a "Big-4" Australian bank.

Financial

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Harmoney affirms FY26 targets as NPAT surges 128%

Written by Heidi Cuthbert Published Apr 22, 2026, 6:13 AMLast Updated Jul 6, 2026, 10:29 AM

Harmoney (ASX:HMY) has reaffirmed its financial targets, announcing it is on track to meet its FY26 cash NPAT guidance of NZ$13 million.

The projection represents a 128% increase over the previous year’s NZ$5.7 million, a surge underpinned by loan book growth and the deployment of the company's automated Stellare 2.0 platform.

The non-bank lender reported momentum across the Tasman for the nine months ended March 31.

Loan originations soared by 19% in Australia and over 50% in New Zealand in local currency terms.

The growth has propelled the group’s total loan book to NZ$879 million, a 10% increase, with the Australian market now comprising 62% of the total portfolio.

Financial efficiency metrics also showed marked improvement. Harmoney’s net interest margin climbed to 10.3%, up from 9.1% in the prior comparative period, while the risk-adjusted income margin rose to 6.5%.

Despite the rapid expansion, the company maintained disciplined credit management; 90+ day arrears improved to 0.62%, and credit losses remained stable at 3.8%.

Operational leverage continues to be a highlight, with the cost-to-income ratio sharpening to 18.2%.

At the time of reporting, Harmoney's share price was $0.86.

Harmoney affirms FY26 targets as NPAT surges 128%

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