The All Ordinaries Index (ASX: XAO) is down 1.1% today, but that's not holding back ASX financial stock Plenti Group Ltd (ASX: PLT).
Shares in the technology-led consumer lending and investment company closed yesterday trading for 65 cents. At the time of writing on Tuesday, shares are swapping hands for 76.5 cents apiece, up 17.7%.
As you can see on the chart below, the Plenti share price has risen by 118.6% since this time last year.
Much of that lift was achieved in November following news of a strategic partnership with National Australia Bank Ltd (ASX: NAB).
Here's what's spurring investor interest in the ASX financial stock today.
ASX financial stock soars on profit growth
Investors are bidding up the Plenti share price following the release of the ASX financial stock's second quarter update for the three months to 30 September (Q2 FY 2025).
(Note, Plenti's financial year starts on 1 April.)
Among the highlights, Plenti reported a 260% year on year increase in unaudited 1H FY 2025 cash net profit after tax (NPAT) of $5.5 million. This figure comes after the expensing of all technology investments over the six months.
Plenti's loan portfolio increased to $2.28 billion over the quarter, up 14% year on year and up 3% from the prior quarter.
Loan originations of $323 million were up 11% year on year and up 7% from the prior quarter.
Quarterly revenue also increased, up 25% from the prior quarter to $63 million. The company attributed the revenue improvement to loan portfolio growth and increased customer interest rates.
There was also good news regarding annualised net credit losses. This came in at 0.93%, down from 1.30% last quarter.
The half-year also saw the ASX financial stock commence the roll-out of the 'NAB powered by Plenti' car loan to NAB customers.
And Adam Bennett successfully transitioned into the CEO role.
Commenting on the quarterly performance, Bennett said:
Plenti continues to demonstrate strong momentum across origination growth, credit performance, and profitability, whilst continuing to build seamless technology-based integrations with its key business partners. I'm very excited by the numerous opportunities ahead of us.
Looking ahead
Looking at what could impact the ASX financial stock in the months ahead, Plenti said for the year to 31 March 2025, it aims to drive growth in loan originations and loan portfolio.
On the profitability front, the company aims to deliver full-year and half-on-half cash NPAT growth, noting that "a more balanced profile is now expected between 1H 2025 and 2H 2025 than in the last two years".
Plenti also intends to reduce its cost-to-income ratio to less than 24%.
The ASX financial stock is scheduled to release its full half-year results on 20 November.
