This ASX fintech share just delivered very strong first half growth

The MoneyMe Ltd (ASX:MME) share price will be on watch on Wednesday after the release of its half year results which revealed strong growth…

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The MoneyMe Ltd (ASX: MME) share price will be on watch on Wednesday after the release of its first set of results since listing on the Australian share market.

How did MoneyMe perform in the first half?

During the six months ended December, the online lender delivered record growth in loan originations and its gross loan book.

This led to MoneyMe posting a 44% increase in revenue over the prior corresponding period to $21.3 million.

This was driven by an 85% increase in loan originations to $94.7 million. The company's gross loan book grew even quicker. It was up 112% on the prior corresponding period to $126.8 million. Management expects this to support strong revenue growth in future periods.

The company revealed that Credit demand continues to experience strong growth. During the half, MoneyMe received $838.4 million of credit applications, up 56% on the prior year. Positively, this was achieved while continuing to demonstrate improving credit quality, with loan provisions to gross loan book reducing to 8.1%. This is a 25% improvement on the prior year.

On the bottom line the company posted a statutory net profit after tax of $4.3 million, up from $0.1 million a year earlier. Though, this was the result of a $5.9 million income tax benefit which reflects a resetting of its tax cost base.

Outlook.

MoneyMe's Managing Director and Chief Executive Officer, Clayton Howes, was pleased with the half and believes the company is in a position to at least meet its prospectus forecasts.

He said: "MoneyMe is well on track to meet or exceed our prospectus forecasts for the full year across all key operating metrics, with strong revenue growth and our gross loan book more than doubling on the previous corresponding half."

"Our products and technology enable MoneyMe's quick roll-out to other markets, with opportunities on the roadmap for the US and the UK. The accelerated expansion of ListReady through partnerships, is continuing, as is the evolving artificial intelligence decisioning that is increasing the integrity of the loan book, enabling larger and cheaper capital structure opportunities", he concluded.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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