Harmoney (ASX:HMY) share price surges 12% on update

This comes after an update earlier today on the personal lender company's performance.

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The Harmoney Corp Ltd (ASX: HMY) share price surged more than 12% in early trade. The bullish price action comes after the company released an update earlier today.  

At the time of writing, shares in Harmoney are now trading up 7.84%, at $2.20. The Harmoney share price was up more than 12% earlier, after hitting an intra-day high of $2.30.

Let's take a look at what Harmoney announced and why investors are scrambling for the company's shares.

Harmoney shares soar on strong originations growth

Earlier today, Harmoney released an update on the company's performance for the second half of FY21.

The update was highlighted by a 144% increase in total new originations for the half. In addition, Harmoney noted that Australian new customer originations grew by 260% in the second half to $47 million.

Overall, Harmoney recorded total group originations of NZ$250 million, compared to $193 million in the first half. The company noted that growth in new customers could lead to a strong increase in repeat customer originations in the following six months.

Harmoney also noted group receivables of NZ$501 million, yielding a net interest margin of 11%. The company's Australian receivables also grew by 33% in the 6 months since December 2020.

Harmoney's CEO and Managing Director David Stevens noted;

"It's pleasing to see Harmoney's new customer originations have surpassed pre-COVID levels. New customer originations is a lead indicator for receivables growth as more customers become eligible for our 3Rs repeat program.".

In addition to its performance in the second half, Harmoney also alluded to forecasts for FY22. The company noted that group receivables are forecast to grow at significantly higher levels in the new financial year. The company cited higher new customer originations and the release of LibraTM 1.7 in Australia.

Harmoney also noted its strong capital position, with undrawn funding lines of NZ$216 million as at 30 June 2021.  

More on Harmoney

Harmoney is an online direct personal lender that operates across Australia and New Zealand. The company provides customers with unsecured personal loans of up to $70,000 that are easy to access and competitively priced.

Despite today's jubilant price action, the Harmoney share price remains more than 22% lower for the year.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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